A growing taco chain on Long Island is lowering prices, and its owner is encouraging other eateries to do the same.
Mike Scotto, the owner of Tony’s Tacos – with locations in Garden City, Franklin Square, Floral Park and Huntington, with plans for expansion – said he is reducing the average meal ticket by 20%.
Scotto said that even though food costs have increased, the price reduction is permanent at Tony’s Tacos. The eateries offer a fusion of Italian and Mexican cuisine, including 18 kinds of tacos.
He belives that the best way to fight inflation is to lower profit margins by reducing prices and boosting the number of people who can afford to dine out. It’s good for business and consumers alike, he said.
It’s only been four days since he’s lowered prices but already, he said, the strategy is working. What used to be a $14 lunch – two tacos and a side – is now as low as $10.50 for a meal.
Scotto has been working the register at his various locations and noting customer reactions.
“People come back and bring their friends the next day,” Scotto said, adding that the restaurants have seen a 60% increase in customers since Tuesday, though of course he’ll have a better idea over time as to how the strategy plays out. Meanwhile, he’s had to boost hours for employees to handle the increased customer base.
The restaurant industry can be volatile. Pressures can include rising food and labor costs, changing consumer preferences and more. According to the September 2024 Consumer Price Index, food prices are up 28% since 2019. These increases have an impact not only on restaurants, but also families.
Tony’s Tacos got its start three years ago when Scotto, an Italian native who has always worked in restaurants, went for tacos with his wife. He decided to make his own version, incorporating the principles of old-school Italian cooking, shared it with his wife, and then friends and the rest is history.
Now, while he’s lowered prices, Scotto is in the process of adding two more 80-seat restaurants – one in central Nassau County, the other in Suffolk County.
Scotto said his growth strategy includes analyzing his operation, adjusting the menu, improving efficiencies and reducing costs.
“Instead of raising prices to offset rising costs, I believe that by cutting prices, more customers will be able to enjoy a meal out, which will increase overall traffic to the restaurant,” Scotto said.
“Contrary to what many may believe, this approach allows restaurant owners to maintain the same or even higher profits by serving more customers,” he pointed out. “At the same time, this helps the community by making dining out more affordable.”
Scotto said that with “lower prices, customers can enjoy a night out more often without feeling financial strain. This is a win-win situation that supports both the business and the customer, and I hope this approach inspires other restaurant owners to do the same.”
Scotto said his new strategy, along with shrinking profit margins, allowed him to implement the price changes at all his locations.
For Scotto, these changes are meaningful.
“Growing up in Italy, my family always made sure we had what we needed, but dining out at restaurants was something we couldn’t afford,” he said. “That experience stayed with me. When I came to the United States with very little, I worked relentlessly to build a career driven by the desire to create something better for myself and others. Now, as the owner of four successful restaurants, I want to give more people the chance to enjoy the experience of dining out – something I once couldn’t do.”