TEXARKANA MAGAZINE
other categories demand our attention. Almost all these types of expenses are calculated based on real-estate values. I will forgo any economic detail and offer one correlation: the recent impressive escalation in residential real-estate values (that all homeowners love) has a direct correlation to an escalation of all these business expenses. While real estate is expected to cool significantly in the immediate future, the most current Zillow market report dated July 19, 2022, states that year-to-year values are increasing at “the current pace of 19.8%.” ( www.zillow.com/research/home-value-sales- forecast-july-2022-31240/ ). These general overhead expenses are exploding upward, just like your home’s value. None of us have a crystal ball. We have no idea what the future holds. What we do know is that area menu prices are on a big
upward move. I am confident that demand will stick, but wholesalers and providers tell me more, and worsening shortages are a virtual promise. If true, prices must go up further still. Speaking as a customer, it is frustrating, to say the least, and downright unsettling at worst. Speaking as a restaurateur, it is a threat to my very future, my ability to feed my family. I can assure you, our businesses are subject to the same high-rising costs and frustrations that we all face as individuals. Please take a moment to consider; COGS is up 18%, Labor is up 23%, and General Overhead is 20%. I am being conservative. A 30% increase in retail menu pricing begins to sound like a bargain. The bottom line is that local restaurateurs are not raising their menu prices to increase profit margins or gouge customers; we are raising our menu prices to keep our doors open.
With nationwide increases in the cost of food and other
goods, we tried to be thoughtful and strategize ways to increase the value of the dining experience at our restaurant. Though we had to increase the prices of some items on our menu, we tried to counteract this increased cost to visitors by enhancing the level of service they receive. We’ve done this by adding live entertainment more nights per month and trying out new acts. Our bar manager, Mackensie, is a first-rate mixologist, creating delicious new cocktail specials that run all month long. Having all of our desserts made by our amazing in-house pastry chef, Bri, is a huge draw to those who cannot find these sweets anywhere else. We have increased our social media presence to keep Texarkana engaged with our happenings. Our food specials run all month on the weekends, allowing all our customers to come in and try new dishes at affordable prices. All of these have helped us keep our seats filled despite new economic challenges. But, as a team leader, I cannot say enough good things about my staff. They show up ready to work, and they leave it all on the field. Ultimately, the only way we thrive is by working together to provide the absolute best experience to each individual that walks through our doors. In my experience, our greatest investment should be in our people. Take care of your people, ensure loyalty and longevity, and they will, in turn, take care of your customers. And, in my humble opinion, we have the best customers in town!”
We have seen an unprecedented and steady rise in the cost of key items… if they are available at all! In some cases, the product may be available but not the packaging, so you can’t
get it. Julie’s is known for, and committed to maintaining the same high quality that our customers depend on us to provide for them and their families. Now, the cost of ingredients is one thing, but the increase in labor costs/reduction of availability has only compounded the problem. I hear people complain about the current state of the hospitality workforce, and that is real. I don’t think it’s a case of people not wanting to work; I think we have a significant number of the hospitality industry leaving the business entirely. Hospitality is hard. But it is easier when you have great customers—like Julie’s does! We are so fortunate to have such a great core group of AMAZING Julie’s employees that are still here every day making delicious food. We struggle with finding part-time staff even though we offer a much higher-than-average wage, PTO, bonuses, college tuition reimbursement, employee discounts, and amazing work culture. Our part-time schedules are perfect for college students! Special event catering has caused us to get out of our comfort zone in this economic climate. We know that weddings are typically once-in-a-lifetime events, and every bride dreams of her perfect day. Making sure the wedding couple gets everything they want with a budget that only covers a portion of the dream event makes for some creative compromises. We are seeing a
—Jodi Griffin, Twisted Fork
lot fewer full-service events and a lot more set-up & drop- off events. This compromise really has helped with being able to accommodate events that have tighter food budgets and still being able to offer delicious Julie’s catering.”
—Jennifer Tanner, Julie’s Deli
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BUSINESS & POLITICS
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