Menu Shrinkage to Lower Costs, Increase Profits

For a long time, in order to satisfy the consumer demand for more menu options, restaurants would try to add more choices. However, this is not the most effective way to stay competitive and increase profits. Here at TaraPaige Group we work with our clients to reduce their core menus in order to keep the offerings streamlined and simple. Shrinking the menu will allow a restaurant to cut costs and focus more of their efforts more on their most popular offerings.

The theory of less is more definitely applies here, as consumers (especially millenials) appreciate food quality over quantity. Chief Operating Officer of Tony Roma’s, Brad Smith, states that “We can no longer be everything to everybody all the time..I don’t think customers are out there counting the number of items. It’s about producing better quality products.” Tony Roma’s has already reduced their core menu items from 92 to 60. Other chains are doing the same.

BJ’s Restaurant has cut their entrees by 30 items and is aiming to get closer to 100 down from 181. Julia Stewart, CEO of IHOP’s parent company DineEquity has shared that IHOP has reduced its emu items from 200 down to 170. Darren Tristano, executive vice president of Technomic noticed that the average number of menu items in chain restaurants began to fall this year for the first time in a decade. Tristano mentions that, “Too many choices make it hard for consumers to make a choice..it also can make it difficult for consumers ‘to remember why they go to a particular restaurant,’ so the industry is moving from ubiquity to specialization.”

To read more about the less-is-more philosophy and how to reduce core menu offerings in order to lower costs, increase profits and still keep guests satisfied, click here

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