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The Restaurant Menu
  Pathway to Profits
PATHWAYS TO PROFITABILITY

 Restaurant Location
 Restaurant Marketing

 Guest Experience Management

 Food Costing Management

 Operational Expense Management

 Menu Marketing
THE MENU

   The Four P’s of Menu Marketing
PRODUCT
   What are you know for?
     Seafood

     Barbeque

     Italian

     Mexican

 What do your customers order?
 Menu Engineering Analysis
     Food   Cost Savings


                            If an item is less than 2% of
                            sales in a menu category,
                            it should probably be
                            discontinued
PRICE

   Elements of Pricing
     Food   Cost – 30%
        Theoretical

        Actual

        Commodity     Market Conditions - Futures
     Competitive   environment
     Tactical Pricing
        End   in a 9 instead of a 5
     Psychological     Pricing
        .29   / .49 / .79 / .99
PLACEMENT

   Designed for Profits
     Use    of images
        Change   your item mix
     Promote    specific items
        Promote   Higher Profits
     Sell   additional items
PROMOTION

 Takeout Menus
 Table Tents

 Profit Toppers

 Menu Boards
DELIVERING RESULTS

   Where does menu marketing
    produce results
     Reduced   food cost through inventory
      management and waste reduction.
     Higher check averages
     Improved product mix towards more
      profitable items.
     Increased category sales on items
      like desserts and appetizers
     Increase takeout business with
      Takeout menu marketing
     Takeout design can lead to increased
      catering sales.
MENU ROI
 Client had not revised his menu in
  over a year.
 Tracking at 15% sales increase
       Price increases / Product Mix Change
   Annual sales impact - $130,000
     Incremental Food Cost - $40,000
     Incremental GP - $90,000

     Menu Cost - $1500

     ROI – 60 to 1
MENU MAKEOVER

   7 Questions To Consider
    1.   When was the last time your menu
         was updated?
    2.   Do your prices end in a 9 or a 5?
    3.   Are prices out towards the far right
         after the description?
    4.   Do you utilize images to help sell
         profitable items?
    5.   Do you have a takeout menu that can
         be used as a direct mail campaign?
    6.   Does your takeout menu promote
         catering?
    7.   Do you use Table Tents to increase
         dessert & drink sales?
CUSTOMIZED ANALYSIS

For a customized analysis of the potential
ROI from a Menu Makeover please contact

Joe Welsh
CORE Restaurant Marketing
888-890-9492
jwelsh@corerestaurantmarketing.com

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Menu Makeover

  • 1. The Restaurant Menu Pathway to Profits
  • 2. PATHWAYS TO PROFITABILITY  Restaurant Location  Restaurant Marketing  Guest Experience Management  Food Costing Management  Operational Expense Management  Menu Marketing
  • 3. THE MENU  The Four P’s of Menu Marketing
  • 4. PRODUCT  What are you know for?  Seafood  Barbeque  Italian  Mexican  What do your customers order?  Menu Engineering Analysis  Food Cost Savings If an item is less than 2% of sales in a menu category, it should probably be discontinued
  • 5. PRICE  Elements of Pricing  Food Cost – 30%  Theoretical  Actual  Commodity Market Conditions - Futures  Competitive environment  Tactical Pricing  End in a 9 instead of a 5  Psychological Pricing  .29 / .49 / .79 / .99
  • 6. PLACEMENT  Designed for Profits  Use of images  Change your item mix  Promote specific items  Promote Higher Profits  Sell additional items
  • 7. PROMOTION  Takeout Menus  Table Tents  Profit Toppers  Menu Boards
  • 8. DELIVERING RESULTS  Where does menu marketing produce results  Reduced food cost through inventory management and waste reduction.  Higher check averages  Improved product mix towards more profitable items.  Increased category sales on items like desserts and appetizers  Increase takeout business with Takeout menu marketing  Takeout design can lead to increased catering sales.
  • 9. MENU ROI  Client had not revised his menu in over a year.  Tracking at 15% sales increase  Price increases / Product Mix Change  Annual sales impact - $130,000  Incremental Food Cost - $40,000  Incremental GP - $90,000  Menu Cost - $1500  ROI – 60 to 1
  • 10. MENU MAKEOVER  7 Questions To Consider 1. When was the last time your menu was updated? 2. Do your prices end in a 9 or a 5? 3. Are prices out towards the far right after the description? 4. Do you utilize images to help sell profitable items? 5. Do you have a takeout menu that can be used as a direct mail campaign? 6. Does your takeout menu promote catering? 7. Do you use Table Tents to increase dessert & drink sales?
  • 11. CUSTOMIZED ANALYSIS For a customized analysis of the potential ROI from a Menu Makeover please contact Joe Welsh CORE Restaurant Marketing 888-890-9492 jwelsh@corerestaurantmarketing.com