Harvest Seasonal Grill, part of Harvest Restaurant Holdings in West Chester, is responding to rising food costs by lowering prices, which has boosted both customer traffic and profits, writes Michael Klein for The Philadelphia Inquirer.
The farm-to-table bar-restaurant, with eight locations in the region, noticed that higher prices correspond with fewer patrons.
“Every time check averages went up, guest counts went down,” said founder Dave Magrogan. “Revenue stayed flat, but we were serving fewer people.”
Instead of raising prices further or reducing portions, Harvest introduced a lower-priced, three-course supplemental menu last summer, which quickly caught customers’ attention. In the fall, the restaurant implemented broad price cuts and adjusted dishes to remove frippery such as microgreens and most garnishes, which customers often pushed aside anyway, said Magrogan.
The initial price cuts worried the restaurant group, as average checks dropped from $44 to $36 and guest counts stayed flat.
Once news of the lower prices spread, traffic began climbing and is now up 10 to 14 percent year over year, with check averages nudging into the high $30s.
“Revenue is up,” said Magrogan. “Profitability is up. And we didn’t sacrifice quality.”
Read more about Harvest Seasonal Grill trying to make the best out of rising food costs in The Philadelphia Inquirer.
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