A Moment On Your Menu
March 15, 2012 | By wthompson |
When was the last time you took a hard look at your menu? Not the design, or layout, but a gut check on your menu offerings. A serious look at what you create and serve has a profound impact on not just your guest satisfaction, but on costs too. Lately, in conversations with our user base we’ve uncovered one common question: am I serving the right things that make me the most money. The answer to this question is three parts:
- Product Mix reporting: taking a good hard look at your pmix report is key! What is selling? What is the percentage of overall sales? A strong pmix audit will continue to give you an idea of where to invest. If your cheese fries are a weak app, get rid of them!
- A Cost Of Sales/Profit By Menu Item report: the value of ANY inventory system is its ability to run cost/margin analysis! You’ll need cost + sales price – any discounts = profits! A clear indication of the duds on your menu are the ones that show negative numbers, or a lot lost profit!
- A Keen Eye and Red Pen: reporting and analysis are the first step, but you have a good feeling here too. My point with this bullet is that you need to watch your kitchen closely and then make those hard decisions to kill a low-performer. Go ahead and red-line that that app if no one is buying it and just maybe those expensive extra inventory purchases won’t be so, expensive!
Now, one key thing we’ve learned here is the data you do have needs to travel… Collaboration is key! The new operator is changing his culture by using collaborative tools (much like a software company) and this requires solid information. If you give your manager the power (access to reports for example), they will take it and run with it to make improvements! Access to the reports I mentioned above will help. Your job is to give them the tools to succeed, their job is to help you get there! And if your menu isn’t helping then no one wins!