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Every challenge facing restaurants today seems to come back to the same question: Where are the hidden costs? This week, we're looking beyond the obvious—from the real price of ingredients and the true cost of employee turnover to why loyalty starts with memorable hospitality, not just rewards points.
Plus, the latest on OpenTable's new perks, Wonder's acquisition of Mighty Quinn's and what museum dining's rise reveals about how Americans want to eat now.
But first, what the disappearance of Vegas buffets says about dining today.
Micro Bites

Friends with benefits. OpenTable introduces a new loyalty perk for frequent diners.
On display. Museum restaurants are popping off in NYC.
Taking a ‘cue. Wonder acquires popular chainlet Mighty Quinn’s BBQ.
Pack it up. Food runners are overwhelmed and underpaid for handling takeout orders.
Helping hand. Brooke Shields joins Denver restaurant’s fight for better wages.
The Dish

The hidden cost of your ingredients goes beyond price tags
Ingredient costs extend beyond purchase prices, encompassing waste, spoilage, labor, inventory inefficiencies and inconsistent portioning. Restaurants that rely on outdated costing methods risk shrinking margins. Better visibility into real ingredient costs enables smarter purchasing, menu pricing, operational decisions and stronger long-term profitability.
Why it matters: With food prices remaining volatile and restaurant margins razor-thin, understanding true ingredient costs is essential for protecting profits without sacrificing quality. Operators who measure hidden costs can make faster, data-driven decisions, improve menu performance, reduce waste and build more resilient businesses in an increasingly challenging operating environment. (Modern Restaurant Management)
Setting up your kitchen for success can reduce employee turnover
High turnover isn't just a hiring problem—it can be a kitchen design problem. Inefficient layouts create unnecessary stress, fatigue and frustration for employees. Thoughtfully designed workspaces that improve workflow, communication and ergonomics can reduce burnout, increase productivity and encourage staff to stay longer.
Why it matters: Every unnecessary step, bottleneck and cramped workstation adds friction to a shift. Investing in a more efficient kitchen layout can improve the speed of service, reduce employee fatigue, simplify training and make the workplace more enjoyable. Better-designed kitchens support retention while boosting consistency, efficiency and ultimately, profitability. (Nation’s Restaurant News)
Why are restaurants still losing when they know more about customers than ever?
Restaurants are misplacing their loyalty efforts by focusing on points and discounts instead of guest recognition. Operators should use customer data in real time to personalize dine-in experiences, remember preferences, and empower staff to make guests feel valued, strengthening repeat visits and long-term loyalty.
Why it matters: As diners become less loyal and more selective, memorable hospitality can be a stronger competitive advantage than rewards programs alone. Restaurants that turn guest data into personalized, in-the-moment service can improve retention, increase repeat spending and differentiate themselves through relationships rather than discounts or promotions. (Restaurant Dive)
By the numbers

61%
The percentage of restaurant workers who skipped more than one meal a week because of high food costs. (Food and Wine)

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On the fly

We ask, you answer

Are you paying runners more to deal with takeout orders?
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The Prep is written by Kelly Dobkin and edited by Bianca Prieto.



