Mixed Bag

The Beef with Beef
A combination Mad Cow scares, McDonald's taking a huge share of the domestic beef supply, and increased consumer demand thanks to Dr. Atkins is wreaking havoc with beef prices. Looking for ways to counter the skyrocketing food cost?

Reduce portions sizes to stay somewhat in line with current pricing. Smaller portions of center of the plate items are consistent with many current diet trends and eating habits. Feature a "petite" size for just under your current menu price, and raise the current item by a couple of dollars.
Don't let people think you're just charging more for the same dish you've served for the last year. Jazz up your current offerings with unique sides or sauces like Carvers' Jack Daniels Sauce to help justify a menu price increase. Using branded products will help boost the item's value perception and allow you to charge more with less price resistance.
Encourage sales of non-beef items using your daily specials menu, themed nights or promotions.
Re-work your menu layout to "bury" high cost beef items, and nudge sales of higher profit dishes. A combination of menu item placement, signature icons, and menu descriptions can subtly shift sales to help protect your bottom line.

The Big Write-Off
The Jobs and Tax Relief Act of 2003 was aimed at stimulating the economy and helping small business owners. One area it helped was with depreciation. The amount that can be expensed in the first year for equipment, furniture, or computer systems has increased from $25k to $100k, even if you finance the purchase over time. This can give you a significant tax break in the short term. Also, the new law provides a bonus depreciation rate of 50%, up from 30% in 2002, for equipment and leasehold improvements purchased/completed before Jan. 1, 2005.

Sweeten the Pot
Desserts, people...desserts! Forget table turn. Sell desserts! They're a great way to boost incremental profits, they're memorable, they're festive and they're easy to sell. Don't ask guests if they have room for dessert. Have servers automatically deliver dessert menus to the table at the end of the meal and describe the most delicious decadent dessert you have to offer. More than one full stomach has found extra room when faced with an ooey, gooey concoction. Even one dessert shared among the group can make a big difference in your bottom line, so be sire and offer extra spoon. Want to go the extra mile? Hold a dessert sales contest for your servers. And don't forget the after-dinner drinks!