This month we look at: pumpkin prices, how vendor loyalty can help cut costs, the pros and cons of closing checklists and national restaurant sales trends from September.

Thanks to all who participated in our AI in restaurant operation survey! Here are the top insights we saw from your responses:

• 64% are actively using AI in their restaurant operations.
• The most common use-cases are creating marketing content and analyzing customer feedback, both reported by 57% of respondents.
• Respondents are most trustful of AI's help with communication, for everything from social media posts, to responding to customer feedback, to drafting emails to staff.
• The most common benefit reported was increased efficiency, particularly with responding to customer feedback. One respondent noted that it had driven more customer traffic as the quick and consistent review responses seemed to have improved their Google SEO performance.

While this survey was just a small subset of restaurant operators and isn't likely representative of how all operators are (or aren't) using AI in their operations, it was interesting to see some clear trends emerge from your responses! Safe to say AI is making an impact, albeit mostly a small one, on restaurant operations today. I'm especially curious about what the same survey results would look like in a year from now!

The rest of this month's edition is a little lighter, as the government shutdown has delayed our inflation report, but scroll on down for more info about pumpkin prices, closing checklists and how vendor loyalty can help you save on costs.

Wishing you all a safe and profitable spooky season, and we'll see you in November!

Know someone who would like to join our 98,716 subscribers? Forward to a friend or send them this link.

- Rachel & the MarginEdge team

P.S. If you took our very, very accurate Restaurant Personality Type quiz, your October mantras are here!

MONTHLY SALES METRICS & UPDATE

The trailing 4-week (28-day) average of year-over-year (YOY) sales for Fast Casual came in at +2.6% and Full Service at +1.0% at the end of September compared to 2024 sales.

Food costs averaged 30% of sales last month, representing a 2% jump from the average in August.

Dig into the full report.

ITEM TO WATCH

Pumpkin

Few foods represent October as ubiquitously as a pumpkin. Across MarginEdge clients, the most commonly purchased pumpkin products are pumpkin seeds and canned pumpkin, so for this month's item to watch, we're taking a deep dive into their current price trends.

Median canned pumpkin prices have been relatively stable over the last year, with the current median price per can being $10.41 nationwide. This is a -1.5% change from six months ago, and +2.6% from a year ago.

Pumpkin seeds, on the other hand, have seen a slightly steadier price increase, with the current median price per pound being $6.09. This is a +4.1% change from six months ago, and +0.5% from a year ago.

Copper Shark | Baltimore, OR

ASK [me] ANYTHING

Does vendor loyalty help cut costs? 

For restaurant operators, managing costs is a constant challenge. One often-overlooked strategy is to leverage partnerships with vendors to streamline operational tasks and reduce expenses. We sat down with our friend Matt Terry, NA Digital Customer Success Manager at Gordon Food Service, for more insight into some key ways to make the most of vendor relationships and the benefits of vendor loyalty:

1. Prime vendor and targeted pricing agreements: These agreements mean committing a significant portion of your business (e.g., 80-90%) to a single supplier, which can unlock perks like rebates, cost-plus pricing (a set percentage above market price) or even locked-in rates for high-volume items.

   Matt recommended focusing on your top 10-20 items, which often account for 80% of your costs. Vendors can offer market-indexed pricing for key commodities like proteins, or things like cheese for pizza joints or potatoes for breakfast-heavy restaurants, ensuring predictable expenses for your most-used ingredients. This not only stabilizes costs but also reduces the administrative burden of juggling multiple suppliers.

2. Reduced operational costs: It might not be the first benefit that comes to mind, but consolidating purchases with one vendor means fewer deliveries, less time spent comparing prices and more streamlined invoice processing. These efficiencies can significantly impact your bottom line when you consider the time savings.
   
   

3. Value-added services: Vendor loyalty often comes with extra perks, meaning anything from menu design support to access to industry events or even tools like inventory management software. These services can save time and money while improving operational efficiency.

4. Market insights and trends: Matt explained that vendors can also act as an extension of your team, providing valuable market data and trend insights that smaller operators might not have access to. This helps you stay ahead of industry shifts and make informed purchasing decisions.

Vendor loyalty is a two-way street, and it's important to remember that your vendors are deeply invested in your success because ultimately their business depends on yours. The more committed you are to your supplier, the more value they can bring to your business. From cost savings to operational support, a strong vendor partnership can be a game-changer for restaurant operators looking to thrive in a competitive market.