Menu engineering is a crucial practice of strategically planning your menu to boost restaurant profits. A restaurant pos system software will help you to identify the most popular and profitable ingredients for a better design. The entire process begins with analyzing the items and comparing the popular and profitable ones. This mechanism enables the restaurateur to decide which items on the menu will affect the bottom line.
Therefore, it is to identify a series of strategies that entice the guests and subconsciously encourage them to spend more.
Here’s how you can achieve The Menu Engineering Mechanism step by step:
- Fundamental for Restaurant Success
Costing a menu is an imperative practice that needs to be exercised for the success of any restaurant. The best way to do it by breaking down every single ingredient and cost each item. We all understand a menu card is the center of the restaurant. A Menu card reflects the type and style of the cuisine and the price of each item. A restaurant can create a pool of satisfied customers with its enticing and delicious dishes along with their correct pricing.
Your menu design reflects the success of a restaurant business. Hence, a meticulous menu planning is important to calculate the price you to put in front of the customer. The expert from the restaurant industry says that your revenue will grow exponentially basing the principles of ‘costing a menu’.
Identify Profit Areas Of Your Menu
Menu design engineering can be achieved by identifying the profit areas of your menu. That means, to simply categorize your items into four to analyze which areas bring in high sales at high margins. This process of splitting and identifying is called menu analysis and this can be achieved with restaurant pos system software.
Set the menu into four categories-
Your menu items that have both the “Profit Category” and “Sales % Category” are high. These are the most useful items on your menu and are both popular and profitable. Further, you must design rigid specifications for quality, portion size, and presentation. You may like to place these items in a prominently visible position and make them your signature dish.
The items are profitable but not popular, i.e., “Sales % Category” is low but “Profit Category” is high. These items of your menu yield high contribution margins. It is important for you to analyze these items whether you should keep them on your menu or not.
Mark those items whose “Profit Category” is low but “Sales % Category” is high. This category of items that are popular but unprofitable, are known as Plow horse / Workhorse. This category does not yield contribution margin, yet they are frequently ordered by price-conscious clientele.
The items whose “Profit Category” and “Sales % Category” are low fall. The food and beverage items are both unpopular and unprofitable. Your restaurant pos system software will provide you detailed reports to analyze. They constantly yield low contribution margins. You may like to eliminate these items from your menu card. Alternatively, you can try to increase their price to see whether they can save themselves.
Classifying your Menu items like above will help you to analyze the food items better. You can analyze the crucial profit areas and the ingredients you can work on for delivering better quality and quantity.
Revise and Recreate Your Restaurant Menu
Once you have analyzed and classified the items and planned the costing the next step is recreating the menu. But before we move forward it’s advisable that you maintain the quality of the food for customer satisfaction.
For non-profitable items, try to increase the contribution margin without compromising on popularity. You can serve it in the form of a combo or reduce the cost of the accompaniments served. For example, McDonald’s serves low-cost French fries as a side dish in the form of a Meal. Alternatively, you may like to reduce the costs by decreasing the portion size.
Design Menus With Attractive Features
The purpose of Menu design engineering is to let your customers know what you are offering them. The next step is to boast about your culinary presentation– redesign the menu graphics and print copies. Feature the popular items in prominent places on the menu along with proper pricing. Motivate your server to sell them by suggesting too. Your servers may propose them to try popular yet unprofitable items. The response generated from this will enable you to test increasing the prices slightly thereby growing your revenue.
As you know, people always get attracted to things that please their eyes. So sprucing up the eye-catching imagery, beautiful font style and text size reflecting your brand style would enhance the results. While designing the menu chart, understand the psychology of your customers- what’s their eye movement pattern, which certain areas get more focus, etc. You can then use this knowledge and present a profitable MENU Card.
Implement and Evaluate Your New Menu Design
If you multiple outlets and have branches, try your new menu in a single location. In case not, don’t try to test your new menu rather implement it and reap the benefits.
Restaurant industry looks like an easy business but it is not!
The risk is too high of losing out in this highly competitive age. Your menu is your key and the sole profit driver of your restaurant, hence, putting careful thoughts into designing. Menu engineering mechanism is all about planning a fulfilling customer experience while also growing your profit. Your restaurant pos system software will give you correct reports and help you grow your revenue exponentially.
Check out our article on how to choose a perfect POS software for your restaurant business.