Analyze the menu = benefits with lower prices for guests
Menu engineering = benefits with lower prices for guests
The times we are in present many economic challenges; inflation still affects certain countries, even if it is decreasing in some areas. Several restaurants need to focus on having a menu that maximizes profitability while maintaining customer satisfaction. Achieving the highest possible profit margins may require reorganizing and updating the menu.
Analyze your menu
Menu engineering involves analyzing your current menu and evaluating each dish based on its profitability (contribution margin) and popularity (sales volume). With relevant information, you can make the right decisions for your business. You will likely see that there are customer favorites on your menu, as well as some options that are not selling as well.
Optimize your menu offerings
- Stars: Ensure these dishes are prominent on the menu, as they generate both high sales and high profits.
- Workhorses: Consider adjusting portion sizes, ingredients, or prices to increase profitability for these popular dishes.
- Puzzles: Market these dishes more effectively by highlighting them on the menu or through server recommendations. You can also evaluate their presentation, portion size, or pricing to increase popularity.
- Dogs: Remove or replace these dishes with new, potentially more profitable options, or improve them to increase their appeal and profitability
Menu design
Based on the results, change how the menu is laid out, allowing the most profitable dishes to take prominent positions, such as the upper right corner, where customers typically look first. Utilize various design elements that frame, enhance, and draw attention to the dishes you want guests to choose. How the price is presented also matters. For example, removing currency symbols and decimal points simplifies the expression. Another effective way to encourage guests to choose a specific option is to offer package pricing. By packaging a main course with a glass of wine for the same price as the most expensive main course, the guest feels they are receiving greater value. Once you have reviewed the menu and made the necessary changes, you should continuously monitor how things are going. Which dishes and packages are selling, which of those dishes have the highest margins, and at what times are certain dishes sold?
Offer affordable dishes
By calculating the raw material costs for dishes, you can consider whether there is any ingredient that could be replaced with a cheaper alternative. Refining and streamlining the menu should lead to increased margins for each dish, reduced food waste, and enhanced profitability. Both businesses and individuals are being cautious with their spending. One way to attract private guests, as well as businesses, to the restaurant is to offer reasonably priced dishes or menus. Perhaps it’s time to drop the signature dish of cured cod loin for 44 euro if it’s not selling. Analyze what guests are ordering and what is truly selling. Reduce food waste, retain customer favorites, and streamline operations – we see it as a winwin!
How can Trivec help you?
By integrating with an inventory optimization system for stock, ordering, waste, and sales, you can view inventory in real-time, reducing the need to inventory parts of your operation as frequently. Learn more about inventory and stocktaking here. At Trivec, we have a large partner ecosystem with tailored integrations for restaurants, including loyalty systems, inventory optimization, analytics, and more.
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