Name: How to optimise your menu for profit and efficiency
Uploaded: 2024-06-24T16:45:10.815Z
Duration: 371.74
Description: How can you create a menu that maximises profit and reduces waste while still keeping customers happy? Join Lori Rakoczy, Associate Principal at Technomic, as she explains how to fully optimise your menu and the benefits that can bring.

menu optmisation v3.mp4

menu optmisation v3.vtt

english

{{00:00:00}}
Of course, a lot about optimisation is
really getting, you know, maximising

{{00:00:03}}
your profits, but you really want to
stick with your brand and produce brand

{{00:00:07}}
loyalty, get your customers in the door.

{{00:00:09}}
So a lot about maximising and optimising
menus is to make sure you have

{{00:00:13}}
that right mix for your customers.

{{00:00:21}}
A menu optimisation is designing your
menu to both maximise profit and revenue,

{{00:00:26}}
while also keeping in mind your customers,
their brand, their brand preferences,

{{00:00:31}}
their demands, what they're interested in.

{{00:00:32}}
It's important now more than ever
because of the costs and labor

{{00:00:36}}
constraints and, and more and more
operators are looking at how do we

{{00:00:40}}
optimise the menu, have the right mix.

{{00:00:43}}
right mix of items on the menu in
order to reach the most customers.

{{00:00:53}}
So an optimised menu versus an
unoptimised menu to boil it down.

{{00:00:57}}
Simply it would be, if you have an
unoptimised menu, you're leaving money on

{{00:01:00}}
the table or you're actually losing money.

{{00:01:03}}
Cause you might be having items
on there that maybe people weren't

{{00:01:05}}
buying, or maybe they're just.

{{00:01:07}}
Too expensive to produce.

{{00:01:09}}
Whereas an optimised menu is
looking at the sales mix that's

{{00:01:12}}
going to reach the most customers.

{{00:01:14}}
So some of the things that we look at, and
the ways that people would maximise their

{{00:01:17}}
menu and optimise their menu is  not just
sales, but also seeing who those customers

{{00:01:22}}
are that may be buying those items.

{{00:01:24}}
So, for example if an operator's
thinking about streamlining their

{{00:01:28}}
menu because they wanna cut costs,
an obvious thing they might do is

{{00:01:31}}
look at their point of sale data.

{{00:01:32}}
It's something that's not
selling well, they'll take it

{{00:01:34}}
off the menu, but what if that.

{{00:01:36}}
Item is really important
to a core set of customers.

{{00:01:39}}
So it's not just about the profits.

{{00:01:40}}
It's about your whole business

{{00:01:49}}
So when I talk about menu optimisation
and I talked about design and that's

{{00:01:52}}
not just designing your menu mix but
it's also designing the menu itself.

{{00:01:57}}
And so having an optimal well
designed menu that's streamlined

{{00:02:02}}
It's logical, it's easy for customers
to find, it is absolutely important

{{00:02:05}}
the way things are arranged.

{{00:02:07}}
But also store layout.

{{00:02:08}}
You don't want your customer to come
in and be confused or have decision

{{00:02:12}}
fatigue and we see people that outright
panic at restaurants if they come in

{{00:02:16}}
and it's not, it's confusing for them.

{{00:02:17}}
And also, now more than ever, it's not
just optimising the menu, physical menu,

{{00:02:22}}
you have to think about your digital.

{{00:02:25}}
So a lot of customers, even
before they get to the restaurant,

{{00:02:28}}
they've already looked at the menu.

{{00:02:30}}
So they know what they're going to order.

{{00:02:31}}
So it's important that you're also
thinking about that digital experience.

{{00:02:41}}
Thinking about their ingredients, a
lot of operators, and we recommend

{{00:02:45}}
looking at more versatile ingredients.

{{00:02:46}}
So thinking about efficiency, you
don't want an item that you're

{{00:02:50}}
just going to use in one dish.

{{00:02:51}}
So that not only saves, you know,
money, it saves labor, so people know

{{00:02:55}}
how to work with that ingredient.

{{00:02:56}}
But also, if you're not, you
know, being efficient with the

{{00:02:59}}
items and using more versatile,
you might be throwing a lot away.

{{00:03:02}}
And so it's looking at
food waste and ingredients.

{{00:03:04}}
to to make sure what you are
using is, is going into the items.

{{00:03:09}}
People are eating it.

{{00:03:10}}
We've talked to operators that
actually look at what goes in the

{{00:03:13}}
garbage to see if, you know, people
are throwing things away and that

{{00:03:16}}
fits into that whole optimisation.

{{00:03:18}}
Like maybe there's an item that
they don't need to include anymore.

{{00:03:28}}
So a lot of operators are starting
to have more limited time offers.

{{00:03:32}}
During the pandemic, we saw the innovation
pipeline sort of slowed down a bit.

{{00:03:36}}
And so now operators are thinking,
how do I create excitement around my

{{00:03:40}}
menu, but also streamline my menu.

{{00:03:42}}
So maybe they've caught
on profitable items.

{{00:03:44}}
Maybe it's a smaller menu and this
way they're using limited time offers

{{00:03:47}}
to really boost that excitement.

{{00:03:49}}
And it doesn't put as much pressure
on the, on the kitchen to have

{{00:03:52}}
this new item all the time.

{{00:03:53}}
And it's also a really great way for
operators to try out a new item, just

{{00:03:57}}
to see how it plays with the customer.

{{00:04:04}}
So data analysis and market research
is a really big part of learning

{{00:04:10}}
about how to optimise your menu.

{{00:04:11}}
And so we do that from operators would
do that from their own internal data.

{{00:04:15}}
So we always recommend you
look at that point of sale.

{{00:04:18}}
See what's really selling.

{{00:04:19}}
But before you decide to cut something,
as we mentioned earlier,  you might

{{00:04:23}}
see an item that's underperforming.

{{00:04:25}}
Maybe it's only 2 percent, 5 percent of
customers that are buying this 5 percent

{{00:04:29}}
of your sales mix, but understanding
and doing market research around who

{{00:04:33}}
those customers are is really important.

{{00:04:35}}
So understanding what the
risk is to streamline.

{{00:04:37}}
So if you're going to cut that item,
are they going to order something else?

{{00:04:40}}
Are they going to go somewhere else?

{{00:04:41}}
And you could lose 5
percent of your sales there.

{{00:04:43}}
So that's where the
market research comes in.

{{00:04:46}}
Further, we recommend doing a
in depth analysis on simulating

{{00:04:50}}
the ordering experience using a
max diff or conjoint analysis.

{{00:04:55}}
And this takes consumers into an
experience where they choose the items

{{00:04:58}}
that they would most likely order.

{{00:05:00}}
And this.

{{00:05:00}}
We'll show an operator with
market research how many customers

{{00:05:04}}
they're currently reaching
and how many they could reach.

{{00:05:07}}
And then what happens
if you take things off?

{{00:05:08}}
What happens if you add them?

{{00:05:10}}
And so there's a lot of data there
that can help operators really minimize

{{00:05:15}}
impact and maximise their profits.

{{00:05:23}}
I guess The quick tip is look at that,
the point of sale data, seeing what's

{{00:05:27}}
happening and then talk to your customers.

{{00:05:29}}
So beyond, you know, doing a really deep
dive into market research, you could

{{00:05:32}}
just understand from your customers
and kind of watch what they're doing,

{{00:05:35}}
watch what they're ordering, seeing
what's resonating both in store on

{{00:05:38}}
social media, and then adjust there.

{{00:05:41}}
And I would say it's really important
to be looking at that labor costs,

{{00:05:44}}
especially as a small business.

{{00:05:46}}
So if it's something that you
can think about,  how ingredients

{{00:05:50}}
are used versatile ingredients,
look at value added ingredients.

{{00:05:54}}
Think about,  yield.

{{00:05:56}}
You know, if you're buying a raw
onion and you have someone cutting

{{00:05:59}}
that raw onion, you're throwing a lot
away and you're paying for the labor.

{{00:06:02}}
So maybe it's worth doing
more value added products.

Of course, a lot about optimisation is
really getting, you know, maximising

your profits, but you really want to
stick with your brand and produce brand

So a lot about maximising and optimising
menus is to make sure you have

A menu optimisation is designing your
menu to both maximise profit and revenue,

while also keeping in mind your customers,
their brand, their brand preferences,

their demands, what they're interested in.

It's important now more than ever
because of the costs and labor

constraints and, and more and more
operators are looking at how do we

right mix of items on the menu in
order to reach the most customers.

So an optimised menu versus an
unoptimised menu to boil it down.

Simply it would be, if you have an
unoptimised menu, you're leaving money on

the table or you're actually losing money.

Cause you might be having items
on there that maybe people weren't

Whereas an optimised menu is
looking at the sales mix that's

So some of the things that we look at, and
the ways that people would maximise their

menu and optimise their menu is  not just
sales, but also seeing who those customers

So, for example if an operator's
thinking about streamlining their

menu because they wanna cut costs,
an obvious thing they might do is

It's something that's not
selling well, they'll take it

Item is really important
to a core set of customers.

So when I talk about menu optimisation
and I talked about design and that's

not just designing your menu mix but
it's also designing the menu itself.

And so having an optimal well
designed menu that's streamlined

It's logical, it's easy for customers
to find, it is absolutely important

You don't want your customer to come
in and be confused or have decision

fatigue and we see people that outright
panic at restaurants if they come in

And also, now more than ever, it's not
just optimising the menu, physical menu,

So a lot of customers, even
before they get to the restaurant,

So they know what they're going to order.

So it's important that you're also
thinking about that digital experience.

Thinking about their ingredients, a
lot of operators, and we recommend

So thinking about efficiency, you
don't want an item that you're

So that not only saves, you know,
money, it saves labor, so people know

But also, if you're not, you
know, being efficient with the

items and using more versatile,
you might be throwing a lot away.

And so it's looking at
food waste and ingredients.

to to make sure what you are
using is, is going into the items.

We've talked to operators that
actually look at what goes in the

garbage to see if, you know, people
are throwing things away and that

Like maybe there's an item that
they don't need to include anymore.

So a lot of operators are starting
to have more limited time offers.

During the pandemic, we saw the innovation
pipeline sort of slowed down a bit.

And so now operators are thinking,
how do I create excitement around my

So maybe they've caught
on profitable items.

Maybe it's a smaller menu and this
way they're using limited time offers

And it doesn't put as much pressure
on the, on the kitchen to have

And it's also a really great way for
operators to try out a new item, just

So data analysis and market research
is a really big part of learning

And so we do that from operators would
do that from their own internal data.

So we always recommend you
look at that point of sale.

But before you decide to cut something,
as we mentioned earlier,  you might

Maybe it's only 2 percent, 5 percent of
customers that are buying this 5 percent

of your sales mix, but understanding
and doing market research around who

So understanding what the
risk is to streamline.

So if you're going to cut that item,
are they going to order something else?

And you could lose 5
percent of your sales there.

So that's where the
market research comes in.

Further, we recommend doing a
in depth analysis on simulating

the ordering experience using a
max diff or conjoint analysis.

And this takes consumers into an
experience where they choose the items

We'll show an operator with
market research how many customers

they're currently reaching
and how many they could reach.

And then what happens
if you take things off?

And so there's a lot of data there
that can help operators really minimize

I guess The quick tip is look at that,
the point of sale data, seeing what's

happening and then talk to your customers.

Expert Insight

How can you create a menu that maximises profit and reduces waste while still keeping customers happy? 

Join Lori Rakoczy, Associate Principal at Technomic, as she explains how to fully optimise your menu and the benefits that can bring.

Restaurants

Financials

Menu Design

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Lori Rakoczy

Discover insights from other experts

Associate Principal

Rakoczy highlights how an optimised menu has a direct link to profit gains and explains why an unoptimised menu can lead to financial losses. 

The benefits of optimisation

Design and customer behaviour

Find out how having dishes with similar ingredients can increase efficiency, save money, and reduce labor. 

Balancing menu variety and kitchen efficiency

Rakoczy gives tips to restaurants on how they can explore new ideas for their establishment while also reducing kitchen pressure and keeping costs to a minimum.

How to innovate without hitting profit

Understand the importance of data analysis and market research for exploring customer preferences. 

The detail is in the data

Rakoczy shares cost-effective strategies for smaller restaurants to improve business performance in the food industry.