Discover how to increase your profitability with Menu Engineering! All the tips from Inpulse to increase your margin.
Sophie Gaaloul
15
Dec 2022
Faced with rising inflation, which is very high for certain ingredients such as meat, fish and especially frozen meat, it is essential to regularly monitor the material cost of each dish to limit the impact on profitability. This reduces customers' purchasing power and squeezes restaurateurs' profitability.
Have you noticed that some of your dishes that were profitable yesterday are less so today?
Foodservice professionals are thus encouraged to look for effective strategies to reduce their costs and adjust their rates, while preserving customer satisfaction. Together, we propose to analyze existing solutions for calculating material costs and using the Menu Engineering method to optimize your margin despite inflation.
Menu Engineering is a strategic method for studying the profitability and popularity of dishes on a restaurant menu. This approach involves analyzing your material costs and margins to determine the placement and price of dishes on the menu. Studies have shown that customers are naturally attracted to certain areas, particularly in the center of the menu. As you can see, product placement has an influence on consumer choice. It's an excellent way to boost restaurant profits!
To increase the profitability of your establishment and keep foodcost under control, it's essential to carefully examine the costs associated with each dish on offer. The value of the goods used and the adjustment of your offer must take into account variations in inflation. The following lines detail the steps you need to take to successfully carry out this analysis and update, including considerations on goods flow management and finished product traceability.
Start by identifying the dishes that generate the highest gross margins, in other words, those whose selling price significantly exceeds the cost of the ingredients required to prepare them.
To do this, you need to ask yourself the following two questions:
It will be necessary to position each plate in this table with 4 boxes:
To accurately classify and control key indicators, you need to calculate the gross margin and turnover rate (frequency of orders over a given period) for each dish. Use the data provided by Inpulse, which also enables you to track supplies and deliveries, to help you better control logistics operations.
The next step is to reduce ingredient costs, a key element in goods flow management. Here's how to do it, taking into account the importance of traceability in guaranteeing the safety and quality of finished products:
The final step involves revising the prices of your dishes to reflect rising costs. To do this:
To increase your restaurant's profitability, once you've analyzed your costs and adjusted your menu, it's essential to apply Menu Engineering strategies. These methods aim to guide your customers' choices by integrating principles of marketing, psychology and design.
Let's make an example together using these two dishes:
Make an inventory of your plates according to these different criteria:
Once this first step is done, you must define the positioning of each of your dishes (star, cash cow, enigma, dead weight). To do this, study :
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Play on the psychology of menus to guide your customers' choices. Use tips based on their emotions and perceptions:
You will then be able to create your menu by positioning the dishes according to the different categories:
"Via Inpulse's data analysis, we can notice which product has a better food cost than the other, and via Tabesto highlight them in order to customize our menu, to have the best foodcost highlighted."
Now, thanks to Inpulse, we have several ways to act: we can rework our purchases with our suppliers, we can rework our recipes in another way, introduce new ones. We are lucky because we have more than 80 recipes. So thanks to Inpulse, we can react very quickly and get these new recipes on the menu."
Thanks to a tool like Inpulseyou can automatically calculate your material costs based on your recipes. Inpulse is a inventory management solutiondirectly connected to your restaurants' cash registers, enabling you to update your stocks in real time. As a result, you can make decisions based on the actual material cost of your dishes. In these times of unstable prices, access to reliable data in real time means you can react quickly.
Don't wait any longer request your demo to see how Inpulse can help you recover margin points!