Suppose you’re accountable for maximising profits for a restaurant group. In that case, you will be familiar with the difficult balance between price and quality when sourcing ingredients for your menu. Finding quality products and reliable suppliers that don’t put your profits in jeopardy can be extremely challenging, especially in a market where prices are increasing and budgets are often not growing at the same rate. We’re going to explore the careful balance between price, profit and quality and the factors you should consider when compiling your annual budgets so that you can confidently source the best ingredients for your restaurants and make this a catalyst for profit and success!
Why are some products more expensive than others?
We’ve all heard the age-old adage ‘you get what you pay for’, but this doesn’t necessarily mean that the most expensive product is always the best. Your customers will associate premium price tags with premium products. Still, there is a fine balance between intrinsically associating your brand with quality and pricing your customer base out of the market. This is why it’s important to find reliable suppliers with the same values as your business when providing quality products at an affordable price that won’t damage your profit margins. Joe Delucci’s works with a 3rd generation gelato family in Italy by Lake Como, who used the highest quality ingredients and tried and tested methods to make a product we can rely on. After many taste tests and trials, our team and our clients can truly taste the difference in our gelato compared to our competitors, making it worthwhile for us to spend a little extra time and effort to obtain the best possible product. By going directly to the source, we harness our strong relationships and expert knowledge to secure favourable pricing, meaning that we can provide our clients with an authentic, high-quality product at an affordable price.
Does a higher price mean higher quality?
Not always, but some products will be sold at a higher price to cover the cost of labour, ingredients and shipping. Over the past couple of years, these costs have increased across many industries following Brexit, Covid-19 and other economic changes. Finding products at a competitive price to maximise your profits is even more challenging. With this in mind, if the price of the item you’re trying to source has increased, it may be a good idea to see where else you can find cost efficiencies. For example, finding a supplier who always delivers on time and provides a consistently high-quality product can ensure that you do not lose profit from late deliveries or bad batches of your ingredients.
Will my customers pay more for a quality product?
Research says yes, quality counts when it comes to making a profit! Moreover, quality is tied to brand trust and advocacy, so tasting the difference with a premium product will instil more trust in your brand, making you the obvious choice against your competitors. A recent study indicates that product quality and trust are inextricably associated, making repeat custom more likely for brands and businesses that inspire loyalty in their consumer base with truly remarkable products.
Furthermore, another analysis revealed that two-thirds of customers would pay more for a better experience, especially for special occasions, which bodes well for restauranteurs who offer a standout experience. These are the venues and occasions where your consumer base will go ‘all out’ on birthdays, anniversaries and work events. A premium experience is more critical on these special occasions than saving money. Providing this level of service and being the ‘go-to’ for these occasions allows you to increase the price of your products without putting off your customers, therefore allowing a larger profit margin to leverage when sourcing your ingredients.
Meeting customer expectations
In a competitive restaurant or hospitality space, you must attract customers with products that truly stand out from your competition. Having products on your menu that catch the eye of your customer base, impress them with high-quality and remarkable taste, and leave them coming back for more is a foolproof way of making a profit, so long as you price your menu items appropriately.
This is even more important when it comes to dessert, with many people often considering this course more of a luxury or an ‘add-on’ than a need. If you can offer something truly unique that stands out above the rest and increases the proportion of your customers that choose to stay for dessert, you can reap the rewards of increased brand advocacy and higher profits.
Looking for quality gelato? Meet Joe Delucci’s…
At Joe Delucci’s, we are passionate about providing remarkable gelato and dessert products that don’t jeopardise your ability to make a profit – after all, your success is our success! Our range of over 40 gelato products – including dairy-free options, sorbets and Italian staples – are created with the utmost care and consideration which you can truly taste! For more information on how Joe Delucci’s premium products can help boost profits for your restaurant group, read more here.
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