Boosting Restaurant Revenue
PART FIVE: TOP 50 MENU ENGINEERING & DESIGN CONSIDERATIONS

The single most important marketing collateral a restaurant possesses is its menu. One of the surest ways to effectively and measurably increase sales, profits, and guest satisfaction scores in a manner that is both quick and sustainable is to roll out a new menu. The menu should function as a tour guide and prove to be the best salesperson in your company. Menu engineering and design is the perfect marriage of both the science and art of successful restauranting. If you look at any lauded and successful restaurant turnaround, you’ll see signs of the CEO focusing on the inside and working outward; and find more specifically that a new menu was at the heart of the brand renaissance.

Each of the below considerations links to a short description (brand-new blog post) on the topic. Each topic below is focused on approaches and important considerations specific to menu design and engineering for restaurant companies large and small. I don’t expect you to read each and every point/post, but if you are about to endeavor on launching a new menu strategy, I am certain you will find lots of goodies in this list that can have a meaningful impact on your efforts. If you’re not embarking on a new menu strategy but know someone who is, please forward this to them and hopefully they will thank us both. A lot of hard work went into creating this list which is the culmination of experience having represented more than 10,000 restaurants spanning six (6) continents and 45 countries. It is my privilege and pleasure to share this kind of original content with you and your company. Your feedback is very much welcomed and appreciated (consider it blog and newsletter fuel!).

Here goes…click on any and all that catch your interest…

1.         Brand Platform – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/brand-platform/

2.         Meaning of Color – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-meaning-of-colors/

3.         Use of Colors – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-use-of-color/

4.         Food Photography – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-food-photography/

5.         Nested Pricing – http://aaronallen.com/blog-post/restaurant-marketing-blog-post/menu-design-nested-pricing/

6.         Don’t Use Dollar Signs – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-dont-use-dollar-signs/

7.         Different Languages – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-different-languages/

8.         iPad – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-ipad-other-tablets/

9.         Digital Menu Boards – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-digital-menu-boards/

10.      Negative Space – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-negative-space/

11.      Icons – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-icons/

12.      Kindergarten Class – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-kindergarten-class/

13.      High-Rent Areas – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-high-rent-areas/

14.      Copywriting – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-copywriters/

15.      Short versus Long Descriptions – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-short-versus-long-descriptions/

16.      Highlighting Specials – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-highlighting-specials/

17.      Season’s 52 Dessert Program - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-seasons-52/

18.      Exterior Menu Displays – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-exterior-menu-displays/

19.      Menus ToGo - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-menus-to-go /

20.      Item Names –  http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-naming-menu-items/

21.      Trademarks & Copyrights -  http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-trademarks-copyrights/

22.      Pricing Strategies –  http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-engineering-pricing-strategies/

23.      Menu Ads – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/advertising-on-restaurant-menus/

24.      Sponsorships and Supplier Logos -http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-supplier-logos-and-sponsorships/

25.      Cooperatives -  http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-marketing-cooperatives/

26.      Readability - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-readability/

27.      Brand Personality - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-brand-personality/

28.      Brand Story - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-the-brand-story/

29.      Brand Promise – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-the-brand-promise/

30.      Brand Positioning - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-brand-positioning/

31.      Locations - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-location-considerations-for-multi-unit-operators/

32.      Durability – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-durability/

33.      Menu Covers – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/custom-menu-covers/

34.      Menu Engineering – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-engineering/

35.      Personalized Menus - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-idea-personalized-menus/

36.      Table Tents – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/table-tents/

37.      Menu Stuffers - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-stuffers/

38.      NEW – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/new-menus-how-often/

39.      Placemats – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/zone-merchandizing-placemats

40.      Glossary - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-design-ideas-glossary-of-terms/

41.      Zone Merchandizing - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/zone-merchandizing/

42.      Adjectives versus Superlatives – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/adjectives-versus-superlatives/

43.      Source – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-strategy-sourcing/

44.      Educate - http://aaronallen.com/blog-post/restaurant-menu-design-engineering/restaurant-customers-want-to-be-educated/

45.      Approachable –http://aaronallen.com/blog-post/restaurant-menu-design-engineering/you-can-never-make-it-too-easy-to-buy-from-your-restaurant/

46.      Production – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-production-how-many-menus-should-we-print/

47.      Modify, Kill or Reposition – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/kill-modify-or-reposition/

48.      Modifiers -http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-modifiers-when-less-is-more/

49.      INVEST – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/menu-investment-and-budgeting/

50.      Hire Smart – http://aaronallen.com/blog-post/restaurant-menu-design-engineering/hiring-a-menu-consultant/

We adamantly believe menu engineering and design requires multi-disciplined team approaches. The process must be rooted in your operational capabilities, brand platform, and culture so it demands involvement from nearly all departments (finance, culinary, marketing, operations, etc). It can’t be done in a vacuum and yield its fullest potential. That said, hiring outside experienced and specialized help can expedite the process and facilitate more cross-departmental collaboration, contribution and buy-in. If you’d like a complimentary assessment of your menu – send us the current in-use version of your menu and cover letter. We’d be happy to proffer some thoughts and suggestions.

Restaurant Consultant

Regardless of where in the world you are you have likely seen “World’s best” claimed at a restaurant. Could be their hamburger, or their ribs, or steak; but whatever it is we all sort of roll our eyes in knowing just because they claim it doesn’t make it so. Superlatives are bold claims that are often hard to believe when proffered by restaurants. A far better way to write is to use true adjectives that are believable; this will go much further in winning hearts and minds as well as building credibility. One should only use adjectives that are accurate though (truth in advertising) and not dress up descriptions by stuffing inaccurate adjectives in menu descriptions, but perhaps some of these work for you: “line-caught”, “free-range”, “shade-grown”, etc. These types of adjectives both more accurately describe what is being served while also making the item sound more appealing and appetizing. Adjectives can conjure positive associations in the mind of the customer where as superlatives conjure images of snake oil salesmen. Some government agencies are working to protect and preserve truth in advertising and are cracking down on misleading menu copy and descriptions. For instance, in Florida, restaurants have long gotten away with serving Tilapia and calling it Grouper (while they taste similar, the price is quite different between the two and so some operators were buying the cheaper Tilapia and selling it as the more expensive Grouper and pocketing the difference). In general, the best approach to menu copywriting is to stick to unique, descriptive, accurate and appealing adjectives and avoid superlatives and false claims. Today’s consumer is willing to pay a little more for a better experience at a restaurant they trust.

Restaurant Consultant

In marketing, you don’t merely want to be considered the best of the best, you want to be considered the only one who does what you do. As Winston Churchill famously said, “Once you have a point to make, don’t try to be subtle or cleaver; hit the point once, twice and then a third time with a tremendous whack”. Applied to brand positioning, this means that once you have zeroed in on what makes you “different” as opposed to “better” the job next is to reinforce that message at every touch-point possible. Applied more specifically to menu design, this means communicating what makes your restaurant different in a way that also expresses the personality and promise of the restaurant. The approaches therefore are dramatically different and entirely unique to each and every individual restaurant brand. In the case of one high-end restaurant client (the most expensive restaurant opening in Florida history), the message was about engaging all of the senses and showcasing El Bulli inspired Alta Cocina in an environment that is decadent modern luxury and sophistication. To communicate the positioning, we were commissioned to create heat sensitive menus and press kits that, under the warmth of touch would reveal hidden messages and art. In addition to the sense of touch, the sense of smell and sound were also engaged with a sound chip embedded in each unit and an aromatic fabric. The intent was to create a sense of discovery, engage the senses, and invite the customer to more carefully observe their environment and experience. Now the budget for this project was well above average for sure, but the intent is the same regardless of budget – to use the menus as yet another opportunity to communicate your point of difference and to impress upon your customers that you pay attention to the little details. The “wow” is found in the little details. More often than not, the best impressions are made not by spending big budgets but by thinking creatively and offering something unique that renders a very brand-relevant and customer-oriented experience to your guests. For more on: Brand Positioning

Restaurant Consultant

An entire book can be written on menu pricing strategies. One of the questions I’m often asked though is how to handle the cents. Should we round it up or down? Should we use $.99 or $.95. What if the target cost meant a menu price of $8.25? Personally I believe many of these issues to be rooted in the overall concept strategy, not just the semantics of menu pricing. Meaning, it would be much more appropriate for a high-end martini lounge to round their prices to flat amounts versus quirky pricing (i.e. it’s $11, not $10.95; but if the same costs were true for family oriented casual dining restaurant the more concept-appropriate approach may be the other way around). That said, pricing is both an art and a science. The science part should be rooted in achieving target theoretical food costs and profit margins. The art part of it though is how to make the science part more appetizing and appealing. A restaurant that charged $7.43 for an item just because that is the exact price that would give them exactly a 31% food cost would be peculiar. Generally, my recommendation is to use as few digits as possible and never use a dollar sign. I also frequently recommend to round up and offer a better value than to round down and pinch both the restaurant’s profits and customers experience. Also, price the menu in such a way that it cannot be easily compared or price shopped against the competition. I have frequently seen restaurants that were overall lower than their competitors but perceived as higher just because having a poor pricing strategy on just a few key items.

Restaurant Consultant

Restaurant Consultant

Imagine going to the grocery store and buying items off the shelf with no packaging; you don’t know completely what’s inside until you get it home. Well, for many, going inside a restaurant they know nothing about feels the same way. They just keep walking. But, when a restaurant has invested in an exterior that communicates what can be found on the inside, and then offers a menu outside, then a passerby can be converted into a new customer. In this post, I am referring not just to the exterior facade though, I am referring to the menu boards. Far too many restaurants either don’t offer exterior menus or they leave the area outdated; using old menus, cluttered with dusty trinkets, etc. Think of the exterior menu board like you have hired a salesperson to stand outside of your restaurant and greet potential customers passing by and to explain what your restaurant is all about. You may decide to look at this investment differently and even go so far as digital displays, or interactive kiosks, or something even more creative and brand-appropriate.

Restaurant Consultant

When dollar/currency signs are used on the menu they become the most repeated item on the menu. The currency sign symbolizes money and therefore communicates the restaurant is just a business out to make a profit. Without a currency sign, guests still understand that any numerals beside a menu item are the price. This makes for a more subtle communication of the price of the item and keeps the guest focused on the experience itself more than the cost of the experience.

Restaurant Consultant

We have all seen those Chinese restaurant menus with the dot-dot-dot leading from a generic menu item name on the left to the price on the right. This encourages customers to view your restaurant as a generic commodity and read from right to left instead of left to right. The goal is to get them to scan the unique item names and well-written descriptions and make their choices based on what sounds/looks good; considering the price secondary not primary. Nested pricing is where the menu price comes after the description and is “nested” into the description using the same size font. After a period to end the description, there should be two spaces and then a price (without dollar signs).

Restaurant Consultant

Restaurant Menu Profitability Analysis – Menu profitability analysis delves into the cracks and corners of menu sales performance to uncover hidden gems of untapped or under-leveraged profit potential.  Remember that scene from “A Beautiful Mind” where Russell Crowe’s character sees volumes and reams of numbers fall away and numerical patterns, mathematical theories, and an exciting new, game-changing hypothesis emerge from the chaos?  That’s what can happen with menu profitability analysis.  Okay, I romanticized it a bit – and at times the process of menu profitability analysis can make one feel as nutty as Crowe’s character was in that movie – but I can say honestly that at times you do have these eureka moments where numbers crumble and behind them you see patterns that would otherwise not have revealed themselves.  You don’t have to be an accountant or math-wiz to come to enjoy menu profitability analysis.  If you like a Sherlock Holmes film or crossword puzzles or snorting around in the backyard with a metal detector, you may like doing menu profitability analysis.  Whether you like it or not though, if you want to increase sales and profits for your restaurant organization, you or someone who works for you needs to go on the needles-in-a-haystack-hunt that is menu profitability analysis.

How do you do it?  Good question.  I’ll stop with making the homework sound like a fun game and try to succinctly describe how you do it and what mantras to say out-loud as you’re doing it.

The idea is that “you deposit dollars, not percentages”.  The standard “target” food cost is roughly 30% (lower for QSR’s and higher for, say, a casual dining steakhouse).  Some items on your menu will yield a lower food cost and therefore a higher percentage profitability. But, which “renter” (my “renter” analogy closes this article, but go with me for now) do you give the prime space to – the one who pays you a bigger percentage of their paycheck or the one who pays you a big rent regardless of how much or little of their paycheck it was?

A profitability analysis of your menu will show you which items are (enter any variety of catch-phrase ways various consultants have come up with to call the four quadrants in a standard economic two-by-two diagram, here):  #1) high in sales quantity and unit profitability, #2) high in sales quantity but not unit profitability, #3) high in unit profitability but not sales quantity, #4) low in unit sales and unit profitability.  Essentially, what all of this tells you is – on a category by category basis – #1) which items to make more prominent on the menu and/or find “line extensions” and new variations of to promote in the future as LTO’s and future permanent add-ons, #2) which items to “re-engineer” so that they become more profitable (like adding bacon to the standard cheeseburger as an option whereby both the price and gross margin are increased), #3) which items to consider giving a “promotion” on the menu in to better real estate so they can shine (and a number of other techniques to take high margin items that are low in sales quantity and increasing the quantity – or just realizing they are too unique to go mainstream and doing something else with them), #4) which menu items aren’t paying their fair share and are deadbeats that should be evicted.

Whew!  That was a lot to sum up (and to absorb) in a single paragraph.  While I realize some of my readers are rolling their eyes and thinking “child’s play”, please keep in mind our clients have ranged in sales volume from $250,000 to $12,000,000,000 (yes, 12-Billion) and we try to offer content relevant to all ends of the spectrum.  Plus, even at the high end of the spectrum, you will concede sometimes this stuff is easier to just discuss and comprehend on an intellectual level than it is to actually produce.  Let’s just say it like this – menu profitability analysis is commensurately difficult to the complexity of your restaurant organization but it is commensurately beneficial to endeavor to perform the analysis, make sense of the results, and effectuate the proper changes inside of your organization.

Whether you love or hate menu profitability analysis; whether you do it yourself or delegate it to someone else; whether this analysis is done on a single unit or a multi-national chain; the importance and necessity is equal.

View the full Article
Boosting Restaurant Revenue – PART FOUR: Restaurant Menu Engineering

Restaurant Consultant Aaron Allen

Having watched this video at least a half-dozen times, I still believe it is one of the most insightful tools for understanding where the Internet has been and where it is likely to go. Those who are looking to understand the notion of “Web 2.0″ will find this video very helpful. While it won’t give you specific answers for what to do with your own restaurant marketing or website (and isn’t intended to), it is one of the first recommendations I have for restaurant marketers and industry executives who are grappling with the fast-paced evolution of digital marketing. For those who are trying to understand the big picture of it, the above video is a great starting point to help them first stretch their minds and get a big picture perspective to then start to narrow in and apply the potential of new technology to their business.

The restaurant industry is – like all industries – being irreversibly changed by technology. Surprisingly, some restaurant industry executives still are taking a wait-and-see approach to many of the new technologies proliferating and influencing the future of business. If this much happened in the first 5,000 days of the Internet, imagine what the next 5,000 will be like.

Restaurant Consultant Aaron Allen