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Optimizing your menu to maximize your margins

With continued labour shortages and increased inflation, many operators are looking for ways to cut costs without cutting customer experience. Menu engineering is not a new concept, and taking a strategic approach to your menu might offer a way to find a happy medium. Recent research shows that by making a few tweaks to your menu, restaurateurs can increase efficiency and raise revenues.

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Menu size

Streamlining your menu requires careful planning and creative practices, but it can allow you to save costs in the kitchen. Investigate which dishes have the lowest margins and are moving the least and start by cutting those from the list. However, rather than simply eliminating a few dishes, consider strategically combining best-sellers, creating value meals, or offering à la carte options. Maximizing ingredient use across different mediums and dayparts can also help simplify your menu, decrease your inventory, and reduce foodwaste – all ways to maximize those margins.

Take on trends

Do some research and incorporate trends that can help you attract attention by adding to your menu, but not to your costs. For example, in 2022, charcuterie boards were projected to grow 25 per cent over the next four years, and they have made boards and sampler platters of all sorts trendy – from butter boards and beyond. This menu item can help operators use up limited ingredients, test out items without investing in a large inventory, and provide an experience that guests are looking for. Adding cocktail or mocktail flights also offers something fresh and unique, while making use of ingredients from the kitchen and testing out recipes. Consider switching it up weekly to keep it interesting and efficient for your kitchen.

Portion control

Studies show that 30 to 40 per cent of food served to restaurant guests is not eaten, and three-quarters of diners would choose a smaller portion size for a smaller price from restaurant menus. If customers want less and it benefits your inventory and margins, give the diners what they want! Again, offering boards, sampler platters, or share plate options could be the best of both worlds, as you reduce your inventory and keep guests satisfied. Use your technology to determine the most popular dishes and use your staff to monitor what is coming back to the kitchen and what is not being finished to adjust your portions accordingly.  With smaller portions, your teams can make the most of upselling to boost guest cheques and offer guests something extra.

With tight margins, smaller staff, and continued inflation, menu engineering is one way that operators can raise revenues without cutting the customer experience.