It can be difficult to predict the future. And after a year of rising costs and scarce labor, optimism is hardly top of mind. But when the greater economic picture seems uncertain, there is all the more reason to turn inward and consider new ways to boost your restaurant’s profit margin. Whether you’re dealing with a slow sales period post holiday-season, or looking to make up for months of slimmer margins due to rising costs, now is a perfect time to take stock of your menu and make a few strategic changes.
The most effective way to assess your menu is through menu engineering. It requires looking into sales data, assessing food costs, and creating a profitability matrix. While it can sound like a time-intensive task, when you have POS reports easily accessible and a menu engineering worksheet at hand, a little effort will make a big impact on your profit margins.
1. See what’s selling and what’s not
A new year brings new food trends and guest preferences. While it can be tempting to raise prices across the board to keep up with rising costs, taking guest preference into account can help ensure your best-selling items stay popular (and profitable) and reduce the labor and potential food waste associated with your less popular items. With accurate, easy-to-interpret sales reports that sync directly with your restaurant POS system, you can determine each menu item’s popularity. This data will inform your menu profitability matrix and help you decide which menu items to modify or remove altogether.
2. Get creative with pricing
Once you’ve looked at your menu through a popularity lens, it’s time to think about your food costs and pricing. Designate which items are your stars, dogs, plow horses, and puzzles on a restaurant menu engineering matrix. Beyond tweaking your menu prices, it’s also a good idea to consider incorporating daily or weekly specials into your menu, or hosting special events or experiences. Even if consumer spending wanes, it’s hard to resist a good deal. Pricing events, like Taco Tuesday or half-price bottle of wine Wednesday, can help you bring customers through the door and positively impact your profit margins.
3. Bundle menu items together
Perhaps you have “puzzle” items on your menu that are low in popularity and high profitability. This gives you the opportunity to bundle those items with more popular menu items, or special deals like a free low-cost menu item, to drive sales. Bundling can encourage your guests to select the menu items you’re trying to sell and can also be a tool that drives guests towards dining in-person or online ordering.
4. Offer family meals or to-go kits
Another way to bring profitable, popular items to your guests’ attention is through shareable family meals or to-go kits. Set meals that tailor to the whole family, particularly families with young children, can help bring in guests who might otherwise stay home to fill that early seating and increase table turns. Promoting meal kits on your restaurant's online ordering system is another creative way to boost profit margins and delight your customers. Cold weather might keep your guests at home, but that doesn’t mean they can’t share a delicious meal and support your business at the same time.
