The 20% Profit Menu Makeover

Overview

A mid-sized restaurant in London, struggling with rising costs and inconsistent profit margins, sought a strategic approach to improve revenue without increasing prices drastically. Through effective menu engineering, they identified high-margin items, optimised pricing, and strategically adjusted their menu to maximise profitability.

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Challenges Faced

• Low profit margins on popular dishes due to high ingredient costs.

• Underperforming menu items taking up space and resources.

• Ineffective pricing strategy that didn’t encourage high-margin purchases.

• Lack of upselling opportunities and menu psychology techniques.

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Our Approach

We implemented a data-driven menu engineering strategy focused on four key areas:

1. Menu Profitability Analysis

   • Categorised dishes using the Stars, Plow Horses, Puzzles, and Dogs method.

   • Identified high-cost, low-margin items that needed adjustments or removal.

2. Strategic Pricing Adjustments

   • Increased prices on best-selling, high-value items with minimal risk to sales.

   • Introduced tiered pricing to encourage premium selections.

3. Optimising Dish Placement & Design

   • Highlighted high-margin dishes with design and placement techniques.

   • Used menu psychology (e.g., removing currency signs, strategic pricing) to drive higher-value choices.

4. Upselling & Add-On Strategy

   • Introduced combo options and add-ons to boost average spend per customer.

   • Trained staff on subtle upselling techniques.

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Results & Impact

• 20% increase in overall profit margins within three months.

• 15% boost in average customer spend due to upselling and better menu structure.

• Reduced kitchen waste and inefficiencies by eliminating low-performing dishes.

• Enhanced customer experience through a clearer, more engaging menu.

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Conclusion

By implementing a structured menu engineering approach, restaurants can significantly improve profitability without increasing operational costs. This strategy ensures that every menu item works towards maximising revenue while maintaining customer satisfaction.

Want to optimise your restaurant’s menu for higher profits? Contact us today for a tailored consultation.