Method Marketing Newsletter: Volume I Issue 9 July 30th
Maximizing Your Profit -
Creating Memorable Menus
Part II

"Everything we do here is about focusing flavors"
Thomas Keller, The French Laundry


Your guests define 'value' by the quality of the restaurant experience and the memory it creates. Memories of great value last and are shared with others.

Quality experiences don't 'just happen'. They get orchestrated like a play or piece of music, scene by scene, note by note. It requires a process.

Balance your capabilities with your physical plant
The practical world now intrudes. What kind of facility do you have? What kind of equipment? Who do you have to prep the ingredients? To cook the food? To serve it? Always follow the spirit of "Know Thyself". Choose your passions, but limit them. Balance in all things. I work with a great restaurateur who balances his culinary brilliance with a iron clad system of prep which allows him to use inexperienced line cooks and unskilled prep people and still produce world class food. His head of prep is his second in command. The gentleman knows the recipes and runs the back of the house. Behind the line, the cooks plate masterpieces without the pressure of 'a la minute' cooking. In effect, everything is ready. Simply add and serve. Their kitchen is small. The smoker is creaky, if effective. Great food can be produced without the latest gadgets. His kitchen includes a simple convection oven, a six burner stove, a cheese-melter, a two basket fryer, a steamer, a wood burning grill and a twelve foot line incorporating hot, cold and dessert. He has a couple of freezers and decent refrigerated storage, but it isn't fancy. What does this create? A noisy, exposed kitchen serving fabulous food from a menu of nearly sixty-five items. Sounds like theater to me. What is the moral? If you have an existing operation don't fret. If you're planning a new restaurant, don't over-equip.

Plan your profit
You are in one of two boats. Either you are dealing with an existing menu or you are planning a new one.

Existing menu: You have your menu costed out. You know how many of each thing you have sold. Break your menu out into entrees, appetizers, sides and desserts. The rest can wait. For each of these groups calculate the mean gross profit earned (selling price less food cost), and rank them in order of gross profit earned. Now, do the same with your menu popularity. Whatever is above the mean goes into the "High" Group. Whatever is below, goes in the "Low" category.

 

Profit

Popularity

Group One:

High

High

Group Two:

High

Low

Group Three:

Low

High

Group Four:

Low

Low

Rule of thumb: promote Group One, develop Group Two, hide Group Three and get rid of Group Four. No item that purports to represent one of your passions/guest's 'hot buttons' should be in either group three or four. Period! I can hear your groans and feel your pain. Listen to me. If you fear a guest's reaction, take it off the menu, but keep it available for a limited period of time. Let the guest know that it is there for them this time but that it is not popular enough to keep. Now you have the makings of a great, profitable menu.

Next, think about what might be done with items that are in Groups Two and Three to better align them with your passion and the guest's 'hot buttons'. Every item you can improve in this way becomes an opportunity to increase value perception, as you increase the price and profit.

Now and only now do you consider a new item. And as you consider it, ask yourself "Will its addition do anything to detract from what I currently do well?"

New Menu: Add one step to the above process. Use the "1/3, 1/3, 1/3" formula advocated by a smart and expert friend of mine, Arlene Spiegel. The first third represents your passion, the second third represents items one must serve to stay in business and the last third represents creative use of items from the first two groups. When she speaks, I listen. You should too.

Coming next: managing menu real estate and design - where the twain finally meet. --> GO

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Part I -Creating Memorable Menus
Part II -Creating Memorable Menus
Part III -Creating Memorable Menus

 

The Method Marketing newsletter gets published twice a month and concentrates on concrete ways you can take advantage of the emerging "Experience Era".

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