Restaurant insights by 7shifts

Is shrinkflation the solution to inflation? Read on for one operator’s POV.

The National Restaurant Association released their annual State of the Restaurant Industry Report, a 58 page PDF covering sales/economic forecasts, and workforce, operational, and food/menu trends. Here’s some money-making opportunities for operators in 2024:

That’s called shrinkflation, and some restaurants are taking part to combat inflation. Mark Steele, owner and chef of OCCO Kitchen in Ottawa understands why but refuses to himself. “If we are using kale for our salad and the price goes through the roof, then I’ll design a new salad, maybe using romaine lettuce if the price is good.”

Although frustrated, Steele is embracing the creative process of modifying his menu as prices fluctuate. “At the end of the day, people want to be social and get out and so I think the demand is always going to be there.”

As a Michelin-rated restaurateur, Josh Kopel knows his stuff.

“Everyone’s leaving money on the table. You could make more money on a Friday or Saturday night or a Sunday night, but we don’t really spend our time doing that….We spend our time trying to figure out how to make an extra 5K on a Monday. When there’s probably 10 to 15K a month just sitting in weekend business that we’re not trying to drive.”

He goes on to encourage operators to use social media to draw attention to their restaurants—by showing them who they are. This newfound attention can bring people to your website or reservation pages, and into your seats. Another way to do it? Gift cards.

“Gift cards are the greatest money on the planet because they’re never redeemed same day. So it’s like an investment. It’s like a bond, and your team should be actively trying to sell them. It should be front and center on our websites. We should talk about it all the time on social. There are massive opportunities there to create an ancillary revenue stream that doesn’t require the need to create merch or bottle sauces,” says Kopel.

Want to learn more? Listen to Josh’s episode on The Pre-Shift podcast.

They say there’s two things we can all be certain of: death and taxes. If the former sounds more fun than the latter, tough luck because it’s tax season baby! Here’s some key Canadian tax filing dates to remember.

March 31
• Partnership information return deadline

April 30
• Personal tax return deadline

June 15
• Self-employed tax return deadline

June 30
• Tax return deadline for corporations with a December 31 year-end

Heads up! Sole proprietorships and partnerships have different filing dates than corporations, so make sure you’re aware of all applicable deadlines for your business. Read this guide for more information.

Note: We’ve tried to ensure accurate information here, but we aren’t accountants and this isn’t intended as advice. We accept no liability for errors or omissions. Always consult an advisor if you have questions about your situation.