How do you communicate the results and implications of menu mix analysis to your staff and customers?

1 What is menu mix analysis?

Menu mix analysis is a method of evaluating the performance of each menu item based on its popularity and contribution margin. Popularity is the percentage of sales that a menu item generates, while contribution margin is the difference between the selling price and the food cost of a menu item. By multiplying these two factors, you can calculate the menu mix percentage, which indicates how much each menu item contributes to your total revenue. Menu mix analysis helps you identify your stars, plowhorses, puzzles, and dogs, and make strategic decisions about pricing, promotion, and elimination.

2 How to communicate menu mix analysis to your staff?

Educating your staff about the results and implications of menu mix analysis is key for delivering your menu to customers. Explain the concept and purpose of menu mix analysis, and how it helps optimize food cost and profitability. Share the data from menu mix analysis, highlighting stars, plowhorses, puzzles, and dogs with charts, graphs, or visual aids. Discuss the actions and recommendations based on menu mix analysis, such as increasing price or portion of stars, upselling or cross-selling plowhorses, improving quality or presentation of puzzles, or removing or replacing dogs. Involve your staff in the feedback process to get their opinions and suggestions on how to enhance menu items and customer satisfaction. Recognize and reward their efforts in promoting and selling menu items.

3 How to communicate menu mix analysis to your customers?

Communicating the value and benefits of your menu items to your customers is essential. Utilize descriptive and appealing language to describe menu items, and use sensory words, storytelling, or testimonials to create interest and emotion. Leverage menu engineering techniques to design your menu layout and presentation, and draw attention to your stars and plowhorses. Incorporate pricing strategies, such as psychological pricing, price anchoring, or price bundling, to influence customer perception and choice of menu items. Moreover, use marketing strategies like social media, email, website, loyalty programs, discounts or coupons to promote and advertise your menu items. Menu mix analysis is not only a useful tool for managing food cost and profitability but also a valuable opportunity to communicate with staff and customers. By using the tips and best practices in this article you can effectively explain the results of menu mix analysis and use them to improve your menu design and marketing.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?