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Hospitality Industry Trends |
Sunday November 23rd, 2008 |
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Food & Beverage - Two fast ways to boost Menu revenue - By Ken Burgin |
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Here's how to increase customer spending and profits as quickly as you can reprint the menu. |
1. Add profitable price-endings. Do you have flat menu prices? Flat prices end in .00 eg $6.00 or £10.00. Adding .50 or .80 or .90 at the end is easy money just waiting for you - eg $4.00 becomes $4.50 or £12.00 becomes £12.80.
Prices written as 12 or 12.00 seem to be more about cool design rather than profit margins. Not very logical.
Will customers notice? A few will, most won't, and if you sell 100 of the item that's gone up by 80c, it's $80 extra. Sell 1000 and that's $800 toward the wage bill.
2. Move the most profitable items to be first and last in a menu section. The first price in a section will sell more, just because it's first. The last item is also strong position. See the example below.
Once you know the gross profit of each item, make the changes. Sales of both will increase, and the overall profit. The same logic applies to wine and cocktail lists. Everyone has an opinion about menu design - make sure decisions are best for the bottom line.
Profitable Hospitality offers management and cost-control systems (Manuals & CD-ROMs) for restaurants, cafes, hotels, bars and clubs. The systems are based on the extensive consulting and operating experience of CEO Ken Burgin, and enable busy owners and managers to set up complete operating and cost-control systems in minutes, not months. Profitable Hospitality also runs regular management training workshops in the areas of kitchen profit & efficiency, restaurant marketing and functions management. A free monthly e-newsletter keeps you up to date on the latest industry management issues. www.profitablehospitality.com.
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Contact Information:
178 Denison St - Queens Park NSW 2022 - Australia
phone 1800-001353 and international +61-2-9340 1089 - fax +61-2-9369 2668
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Profitable Hospitality offers management and cost-control systems (Manuals & CD-ROMs) for restaurants, cafes, hotels, bars and clubs.
The systems are based on the extensive consulting and operating experience of CEO Ken Burgin, and enable busy owners and managers to set up complete operating and cost-control systems in minutes, not months. |
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