Inspirations

Rethink Your Restaurant Menu (Part 1)

When times are tight, many restaurants start cutting down on their two main expenses: staff costs and raw material costs.

However, this short-term solution may result in worse service & lower quality food, and you risk losing customers over the long term.

The good news is, there is another way to cut costs, optimize your business and increase your revenue: rethink your menu.

 

Every item in your menu can be categorized into one of these four categories:

  • Star (High Popularity, High Profit): Customers often order this dish, and it makes you money.
  • Plow Horse (High Popularity, Low Profit): Customers often order this dish, but you don’t make much money, or only break even on it.
  • Dog (Low Popularity, Low Profit): Customers don’t order this dish, and you don’t make much money from it.
  • Puzzle (Low Popularity, High Profit): Customers don’t order this dish, but it could make you money if ordered.

profit popularity matrix

So, start referring to your POS system records and classify your dishes according to the matrix above.

Stay tuned for Part 2, where you can learn how to use this information to help you cut costs without cutting your profits!