Restaurants less flustered by rising costs

It's one thing to battle high food costs every trip to the grocery store, but at least you don't face that battle at work -- unless you own a restaurant.

John Meyer, John Liapes and Tom Bozonelos own restaurants -- but, somewhat surprisingly, seem generally unflustered by today's prices.

"We've been in these situations before," explains Bozonelos. "You try to absorb most of your food cost increases. We take a loss (and) adjust over the long term. It's harder for new people in the business who haven't gone through this (type of) adjustment period."

Bozonelos co-owns two Egg'Lectic Cafes, upscale breakfast and lunch restaurants in Wheaton. Liapes is co-owner of the Black Ram Steakhouse, a Des Plaines fixture for nearly four decades. Meyer owns two popular food-for-the-soul BJ's Market & Bakery restaurants on Chicago's South Side and one in Terminal 3 at O'Hare Airport. He's also chair of the Illinois Restaurant Association.

Because all three try to keep prices level and are adamant about maintaining quality, we'll make it a given that pricing and quality are sacrosanct. There are other issues, however.

"You have to accept the fact that you will absorb a majority of higher costs," Liapes says. At the same time, he continues, restaurants must "diversify (their) menu. We're a steakhouse, but we add chicken dishes and seafood."

Meyer "looks at recipes, maybe other ingredients that are less expensive but do just as good a job." He also looks at staffing, an issue restaurants share with other businesses.

With 45 employees and a goal to "stay above" minimum wage, "We look at labor," Meyer says. "Can we clean up in 45 minutes rather than an hour (after closing)? Can we bring some people in half an hour later?

"Are managers making table visits?" Table visits are "very important" if there is a complaint, Meyer says, because handling a diner's complaint effectively is a way to increase business.

Increasing business matters. "The key to restaurant success is volume," Liapes says. "You have to keep bringing new people in every day."

Portions and value are part of the mix. The Black Ram's upcoming two dinners for $39 anniversary promotion features such comfort foods as roast chicken and meat loaf, and combines "(slightly) smaller portions" with soup, dessert and coffee. Portions aren't small, however -- a 5 percent reduction, not 25 or 30 percent, Liapes says.

Portion control, which to an outsider seems like, well, a piece of cake, turns out to be a surprisingly complex issue.

"People expect a big portion because of the fast-food supersizing," Bozonelos says. Yet, "We see tremendous waste. People leave a lot of food on the plate."

Consequently, Bozonelos pays attention to portion size -- partly to save food and partly to "make people healthier."

There's also cost to be absorbed when food goes home in a carryout box. "The carryout container and bag add expense," Bozonelos says.

E-mail questions, comments to Jim Kendall, JKendall@121MarketingResources.com.

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