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

The fast-food chain Cinnabon is exploring the idea of setting up stand-alone shops serving artisanal bon bons called Bon Bake Shop. Beginning mid-Sepember this year at Willowbrook Mall in Houston, Cinnabon will test the waters with the new Bon Bake Shop. The goal of this experiment is to have smaller, less caloric items that will attract guests who wouldn’t normally be customers at a Cinnabon. Taco Bell did a similar experiment and opened an eatery near Los Angeles called U.S. Taco Co. which is a higher end equivalent to the Mexican fast food chain.

Chief of Marketing for Cinnabon Kristen Hartman explains that, “The next big thing in indulgence is small…people are all about bite-sized and sharing, ” so the smaller bon bons will include fun frostings such as Birthday Cake, Maple Bacon, Wild Berries & Cream and S’mores. The shop will also be offering Whoopie pies and some savory items as well, such as cheese rolls and twists. The “minibons” will also be sold in small 4-packs as well as a 16 pack and will have rotating flavors such as Toasted Coconut and Bavarian Cream Pie amongst others. These would be a great option to bring to the office or as a gift or even just an afternoon snack.

The whole look of the new shop will also be different to its parent company’s blue and white theme; it will have warmer color tones with a more understated feel.  Although there will only be three locations in the first year, it will be a great opportunity for Cinnabon to extend the brand and attract franchisees by showing how they can reach a new audience by still using the same supply chain. If the first location in Houston shows a great success in sales, Cinnabon may end up deciding to implement some of the minibons into their current Cinnabon menus. Overall the move towards diversification is fueled by the risks that come with building a brand around a single product; which is essentially what led to Crumbs’ bankruptcy.  To read more about how Cinnabon is attempting to broaden their appeal with the new Bon Bake Shop, click here

According to the United Nation’s Food and Agriculture Organization, global food prices were at a six-month low in this past month of July. This was mostly due to the decreases in dairy, grains and oilseeds which evened out the rising prices of meat and sugar. FAO’s price index measures the price changes for oilseed, dairy, meat, sugar and baskets of cereals. The index averaged 203.9 points in July, a 4.4 point difference compared to June, or  a 2.1% decrease. This 203.9 figure was 1.7% below that of the previous July 2013.

The Food and Agriculture Organization’s cereal price index which was down 5.5 percent from June, and significantly lower than last year’s figure. According to the food agency this was due in main part to the expectation of large quantities of exportable supplies and the excellent production possibilities in many major producing countries. FAO raised its projection for global cereal production from 18 million tonnes to 2.498 billion tones and also increased the world outlook for cereal stocks to being 5% higher than the previous estimate which was set at 576 million tonnes.

To read more about the statistics surrounding the six-month low in world food prices from FAO, click here