These Long Island restaurants are slashing prices to boost business amid inflation
Long Island restaurants cut prices despite inflation
Inflation may have slowed, but most restaurant prices remain high—except at two Long Island eateries breaking the mold. FOX 5’s Jodi Goldberg shows how Tony’s Tacos and Lucharitos are cutting costs while keeping quality high, proving that lower prices can still mean big profits.
LONG ISLAND - While inflation rates have eased in recent years, many restaurant owners on Long Island are still grappling with high menu prices, which have yet to drop in tandem with overall inflation.
According to economist Dr. Martin Cantor, the price of dining out has risen significantly since the pandemic.
"Restaurants are now about 15% higher than they were before the pandemic, and last year alone, they went up by 7 percent," Dr. Cantor explained.
However, some local eateries are bucking the trend and finding success with a different approach.
Tony’s Tacos, a popular spot on Long Island, has chosen to reduce its prices, and it’s paying off. Owner Mike Scotto credits his strategy of offering a 20 percent discount across the menu for the restaurant's surge in business.
Restaurant owner says lower prices bring in more business
"We’re keeping our prices down," Scotto said, noting that the move has encouraged customers to visit more frequently. "The profit dollar amount didn't change, but the profit margin did. The customer, instead of coming once a week, is now coming in three times a week."
Scotto emphasized that the restaurant has maintained the same high quality and portion sizes. "We’re just doing more in volume," he said, explaining that the price cuts have led to a boost in sales, even if individual transactions are smaller.
Business owners cut costs by scaling back
In addition to discounting prices, Scotto is trimming costs by cutting back on custom napkins and reducing advertising expenses. "We’re making smarter choices to keep our prices lower," he said.
Similarly, Lucharitos, another Long Island restaurant chain, is also making moves to keep costs down. Tom Martino, vice president of operations, shared that they’ve worked with suppliers to negotiate discounts between 15 and 25 percent. "We set the pricing we wanted for our customers, and we told our suppliers to do what they had to do to help us get there," Martino said.
Dr. Cantor believes this strategy of price reductions could be key to the survival of small businesses in the current economic environment. "Lower prices will get people in the door, and more diners than anything else you could do," he said.
As these businesses demonstrate success, restaurant owners across Long Island are hoping others will follow their lead and implement similar pricing strategies to help boost sales and attract more customers.