Strategies for SMEs in the restaurant industry to cope with inflation
Saine, Alex (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025052918024
https://urn.fi/URN:NBN:fi:amk-2025052918024
Tiivistelmä
Inflation has been a significant issue that has had an impact on many sectors, the restaurant industry included. In this thesis, we will examine SMEs from the industry and their strategies to survive inflation. The research in this thesis focuses on the operational costs, consumer behaviour, and pricing strategies among restaurateurs. The theoretical framework includes the history and main causes of inflation, its impact on the restaurant industry, and different pricing and cost management strategies.
The research uses qualitative analysis, which is based on interviews with professionals from the restaurant industry and secondary research. These provided the study with extensive information about effective strategies to manage inflationary pressures. The key findings highlighted procurement accuracy, effective cost management, and strategic pricing of menu items. The research also highlighted the impact of consumer behaviour on pricing strategies and the need for innovative solutions to remain profitable during these problematic times.
Internally, inflation has led to several operational inefficiencies, such as rising raw material and labour costs. These have led to changes in procurement practices and energy consumption. Externally, consumer purchasing power has decreased, and VAT changes have had an impact on the financial standing of restaurants. The research uncovers that even when some restaurants have been able to remain financially stable through improved internal processes, many still struggle with the challenging environment among restaurants. The rising costs and reduced profits have especially had an extensive impact on the operations of casual restaurants.
The study identifies several cost management strategies, the most prominent ones being investing in staff training, procurement management through purchasing pools, and resource optimisation techniques such as waste reduction and inventory management. Additionally, the research emphasises the importance of benchmarking and measuring operational metrics for effective cost control.
The results provide restaurateurs with recommendations which can be applied to combat the negative impact of inflation on their operations and to ensure financial stability. These recommendations include the adoption of balanced pricing strategies, focusing on high-margin menu items, and the use of innovative solutions to enhance operational efficiency. The results illustrate an extensive understanding of the factors contributing to the resilience of SMEs from the restaurant industry to inflationary pressures. The results also provide practical insights for maintaining financial stability in a volatile economic environment.
The research uses qualitative analysis, which is based on interviews with professionals from the restaurant industry and secondary research. These provided the study with extensive information about effective strategies to manage inflationary pressures. The key findings highlighted procurement accuracy, effective cost management, and strategic pricing of menu items. The research also highlighted the impact of consumer behaviour on pricing strategies and the need for innovative solutions to remain profitable during these problematic times.
Internally, inflation has led to several operational inefficiencies, such as rising raw material and labour costs. These have led to changes in procurement practices and energy consumption. Externally, consumer purchasing power has decreased, and VAT changes have had an impact on the financial standing of restaurants. The research uncovers that even when some restaurants have been able to remain financially stable through improved internal processes, many still struggle with the challenging environment among restaurants. The rising costs and reduced profits have especially had an extensive impact on the operations of casual restaurants.
The study identifies several cost management strategies, the most prominent ones being investing in staff training, procurement management through purchasing pools, and resource optimisation techniques such as waste reduction and inventory management. Additionally, the research emphasises the importance of benchmarking and measuring operational metrics for effective cost control.
The results provide restaurateurs with recommendations which can be applied to combat the negative impact of inflation on their operations and to ensure financial stability. These recommendations include the adoption of balanced pricing strategies, focusing on high-margin menu items, and the use of innovative solutions to enhance operational efficiency. The results illustrate an extensive understanding of the factors contributing to the resilience of SMEs from the restaurant industry to inflationary pressures. The results also provide practical insights for maintaining financial stability in a volatile economic environment.