MENU ANALYSIS

What is menu analysis? For businesses searching for answers to questions such as how restaurant menu analysis is done, how to understand whether a food menu makes money, which products are profitable on a restaurant menu, which products do not sell, which products should be removed from the menu, how menu sales analysis is done and why professional cost analysis is important, menu analysis is a professional study that reveals the real sales and profitability map of a restaurant.

 

In restaurants, a food menu is not just a list of products. A food menu is the main system that directly affects the kitchen's production power, service speed, purchasing order, stock load, recipe cost, portion standard, guest preferences and the profitability of the business. However, if this system is not analyzed regularly, the restaurant sees what it sells but cannot see what it earns.

 

A restaurant may be full, some products may sell a lot and the guest count may look high; however, if the menu is wrong, the business may not achieve the expected profit. A high-selling product may leave a low contribution margin. A low-selling product may generate high profit if explained correctly. Some products take space on the menu, create stock load, tire the kitchen and bring no real income to the business. Menu analysis shows these differences with numbers.

 

Under the consulting of Chef Ahmet Özdemir, restaurant menu analysis, within our service areas, is handled as an applicable, measurable and decision-making system for investors who want to open a restaurant in Turkey and in different countries around the world, businesses that want to strengthen their existing restaurant, brands that want to renew their food menu, restaurants with declining profitability and food and beverage businesses that want to grow.

 

WHY IS MENU ANALYSIS NECESSARY?

The restaurant menu is the most important sales tool of the business. The guest often makes the ordering decision through the menu. The product name, description, price, category position, product order, service staff recommendation and the brand value of the product affect the ordering decision. However, the menu must be analyzed not only for sales, but also for profitability.

 

Restaurants without menu analysis often face the following problems:

 

It is not known whether high-selling products really leave profit.

Low-selling but high-profit potential products are not noticed.

Unsold products continue to remain on the menu.

High-cost products are not priced correctly.

Recipe costs are not updated.

Portion weights are not controlled.

Stock load increases.

Waste rates remain invisible.

Service staff do not know which product to recommend.

The guest has difficulty deciding on the menu.

The restaurant works intensely but profitability remains weak.

 

Professional menu analysis gives the restaurant owner and manager the answers to the questions: "Which product makes money, which product wastes time, which product should be removed from the menu, which product should become more visible, and which product's recipe should be corrected?"

 

HOW IS MENU ANALYSIS DONE?

Menu analysis is not done by guesswork. Real sales reports, product-based sales quantities, recipe costs, portion costs, selling prices, contribution margins, stock load, waste rates, service time and guest feedback must be examined together.

 

In professional restaurant menu analysis, the following data are collected:

 

Product name

Product category

Sales quantity

Sales revenue

Selling price

Recipe cost

Portion cost

Contribution margin

Cost percentage

Preparation time

Cooking time

Service time

Waste rate

Stock load

Supply convenience

Guest demand

Service staff recommendation success

Product complaint and return status

 

Without this data, menu comments remain incomplete. General comments such as "this product is liked," "this product is expensive," "this product does not sell," or "let us keep this product on the menu" are not professional analysis. Menu analysis evaluates products according to sales and profitability data, not emotions.

 

SALES MIX ANALYSIS

Sales mix analysis shows the share of menu products within total sales. It reveals how many units each product sells, which category is stronger, which product is preferred more by guests and which product does not sell despite being visible on the menu.

 

Sales mix analysis answers the following questions:

 

Which products sell the most?

Which products sell the least?

Which products create sales volume?

Which products carry total revenue?

Which categories remain weak?

Which products sell more on certain days?

Which products slow down service flow during busy hours?

Which products sell more through staff recommendation?

 

The sales mix report is not sufficient on its own. A high-selling product is not always a profitable product. Therefore, sales mix must always be read together with recipe cost and contribution margin analysis.

 

CONTRIBUTION MARGIN ANALYSIS

Contribution margin shows the gross income left to the business after product cost is deducted from the selling price. In menu analysis, contribution margin is one of the most important data points for understanding what a product really earns for the business.

 

Contribution margin can be understood as follows:

 

Selling price - product cost = contribution margin

 

However, in professional menu analysis, this formula alone is not enough. Preparation time, staff labor, energy use, service speed, stock load, waste rate, supply risk and the strategic value of the product on the menu must also be considered.

 

A product may have a low cost percentage; however, if its selling price is also low, it may leave little contribution to the business. Another product may seem to have a high cost percentage; however, if its contribution margin is strong and its sales volume is high, it may be more valuable for the business. Therefore, menu analysis should be done not only with percentage calculations, but with real contribution margin and sales volume.

 

MENU ANALYSIS AND MENU ENGINEERING

Menu analysis forms the foundation of menu engineering. In the approach emphasized in Cornell University's menu design and menu engineering training, menu products are evaluated through sales volume and profitability contribution. Thus, the menu becomes not only a page showing products, but also a revenue and profitability management tool.

 

In international menu engineering, products are generally evaluated in four groups:

 

Star Products

These are products that sell well and leave high profit. They should be protected, kept visible, their recipe standard should not be disrupted and they should be strongly recommended by service staff.

 

Working Products

These are products that sell well but leave low profit. Their recipe, portion, garnish, price, supply or service recommendation should be reconsidered.

 

Hidden Value Products

These are products that sell less but carry high profit potential. Their place on the menu, description, service staff explanation and presentation should be strengthened.

 

Weak Products

These are products that sell less and leave low profit. They take space on the menu, create stock load, tire the kitchen and do not contribute to the business. If there is no strategic reason, they should be removed from the menu or redesigned.

 

This classification allows the restaurant to manage its menu based on data, not instinct.

 

MENU ANALYSIS AND RECIPE COST

Menu analysis cannot be reliable without recipe standardization and a known recipe cost. If the real cost of the product is unknown, its profitability cannot be known either. If the same product is prepared on different days with different weights, different sauces, different garnishes or different portions, menu analysis will not be reliable.

 

In menu analysis, the following recipe information should be checked for each product:

 

Gross weight

Net weight

Preparation loss

Cooking loss

Portion weight

Main product cost

Sauce cost

Garnish cost

Presentation cost

Packaging cost

Total recipe cost

Selling price

Contribution margin

Target cost percentage

 

The purchase quantity, yield and portion calculation logic in sources such as the USDA Food Buying Guide is also important in menu analysis. It must be known how much of the purchased product becomes usable, how many portions come out after cooking or preparation, and what the real cost of one portion is.

 

MENU ANALYSIS AND PRODUCT PERFORMANCE

Menu analysis reads the performance of each product separately. A product should be evaluated not only by its taste, but by its total contribution to the business. A product may be good; however, if its supply is difficult, cost is high, preparation is long, service time is slow and sales quantity is low, its place on the menu should be questioned.

 

The following headings are evaluated in product performance analysis:

 

Sales quantity

Sales frequency

Contribution margin

Recipe cost

Portion standard

Preparation time

Service speed

Stock load

Waste rate

Supply reliability

Guest feedback

Service staff explanation

Brand value

 

As a result of this analysis, a clear decision is made for every product: it will be protected, strengthened, repriced, have its recipe corrected, have its place on the menu changed or be removed from the menu.

 

WHICH PRODUCTS SHOULD BE REMOVED FROM THE MENU?

Menu analysis clearly shows which products should be removed from the menu. Some products are kept because they have been on the menu for many years; however, they may provide no contribution in terms of sales, profitability or kitchen workload.

 

Products that should be removed from the menu generally have the following characteristics:

 

Sales quantity is low.

Contribution margin is weak.

Recipe cost is high.

Supply risk is high.

Preparation time is long.

Waste rate is high.

They create stock load.

Service staff cannot explain the product.

The guest does not understand the product.

They are not compatible with the concept.

 

Not every weak product should be deleted immediately. First, the product name, description, price, recipe, presentation and place on the menu should be reviewed. If the product still does not produce sales and profitability despite this, it should be removed from the menu.

 

WHICH PRODUCTS SHOULD BE HIGHLIGHTED?

 

One of the most important results of menu analysis is determining which products should become more visible. Products that leave high profit, are liked by guests, can be produced by the kitchen with a standard and strengthen the brand value of the restaurant should be positioned more correctly on the menu.

 

The following characteristics are sought in products that should be highlighted:

 

High contribution margin

Regular sales

Strong guest demand

Easy supply

Standard production

Low waste

Fast service

Brand value

Easy explanation by staff

 

These products should be used more strongly in menu design, service recommendations, daily suggestions, digital menus and sales strategy.

 

MENU ANALYSIS AND RESTAURANT CONCEPT

Menu analysis should be read differently according to each restaurant concept. For an investor who says "I want to open a steak restaurant," meat weight, cooking degrees, dry aging process, waste rate, side product sales and portion standard are important. For those who want to open a seafood restaurant, daily supply, cold chain, appetizer sales, cleaning waste and product freshness should be analyzed.

 

For those who want to open a cafe or coffee shop, beverage cost, dessert and display products, takeaway sales, average check amount and fast service flow should be monitored. In fast food restaurants, product speed, standard recipe, packaging cost, side product sales and serial production power are important. In high-class restaurants, menu analysis should be carried out together with product quality, service rhythm, refined guest expectations, signature products, plate cost and brand perception.

 

In different concepts such as Turkish cuisine restaurants, Ottoman cuisine concepts, Anatolian cuisine, Mediterranean cuisine, Levantine cuisine, Lebanese cuisine, vegan and vegetarian restaurants, menu analysis should consider not only the cost of the product, but also its cultural value, presentation power and guest expectations.

 

MENU ANALYSIS AND SERVICE STAFF

Menu analysis is not only a kitchen or management study. Service staff directly affect menu performance. They are the team that explains the menu to the guest, highlights signature products, recommends high-profit items and makes the guest's decision easier.

 

During menu analysis, the following questions should be asked about service staff:

 

Does the staff know the products on the menu?

Can they explain signature products correctly?

Do they recommend high-profit products?

Do they know allergen information?

Can they suggest side products and beverages?

Can they answer guest questions clearly?

Which products increase sales when recommended?

 

If service staff cannot explain the menu correctly, even strong products cannot sell enough. Therefore, after menu analysis, service staff should receive product explanation and sales-oriented menu training.

 

MENU ANALYSIS AND DIGITAL MENU

In restaurants using digital menus and QR code menus, menu analysis can be done more regularly. It can be tracked how many times each product is viewed, which product turns into an order, which categories are examined more and which product descriptions remain weak.

 

The following headings should be evaluated in digital menu analysis:

 

Product view count

Order conversion rate

Category visits

Readability of product descriptions

Price perception

Visual use

Mobile screen readability

Language options

Management of out-of-stock products

Visibility of profitable products

 

A digital menu is not only a technological convenience. When analyzed correctly, it provides strong data for the restaurant's sales and profitability decisions.

 

MENU ANALYSIS AND MENU REPAIR IN EXISTING RESTAURANTS

In existing restaurants, menu analysis often results in menu repair. The restaurant may be operating; however, if the menu is too wide, sales are unbalanced, some products create stock load, costs are rising, service is slowing down or guests have difficulty deciding, the menu should be analyzed again.

 

Within menu repair, the following work can be done:

 

Unsold products are identified.

Profitable products are highlighted.

Product descriptions are strengthened.

Recipe costs are recalculated.

Portion weights are checked.

Prices are updated.

Category structure is simplified.

Stock load is reduced.

Waste rates are decreased.

Service staff receive menu training.

 

In struggling restaurants, menu analysis is one of the most important starting points for recovery. A wrong menu can be one of the main causes of cost pressure, stock confusion, slow service, guest dissatisfaction and low profitability.

 

WHICH RESTAURANTS NEED MENU ANALYSIS?

Menu analysis is necessary not only for restaurants that are losing money, but for every restaurant that wants to grow and strengthen its profitability. Businesses searching for the following should especially receive professional menu analysis consulting:

 

I want restaurant menu analysis.

I want to know whether my food menu makes money.

I do not know which products should be removed from the menu.

I want menu cost analysis.

My restaurant menu is too wide and I want to simplify it.

I want to create a profitable restaurant menu.

I want to identify unsold products.

I want to price my menu correctly.

I want steak restaurant menu analysis.

I want seafood restaurant menu analysis.

I want cafe menu analysis.

I want to analyze my fast food menu.

I want professional analysis of my high-class restaurant menu.

I want menu analysis before opening a restaurant abroad.

 

The main goal in all these searches is the same: to read the restaurant food menu based on data, increase profitability and manage the future of the business more strongly.

 

MENU ANALYSIS CONSULTING

Professional menu analysis consulting is a comprehensive study that evaluates a restaurant's food menu together with sales, cost, contribution margin, product popularity, kitchen capacity, supply system, service performance and guest expectations. This work is not simply commenting by looking at the menu; sales reports, recipes, costs, stocks, service flow and field observation are examined together.

 

Chef Ahmet Özdemir provides consulting in Turkey and in different countries around the world in the fields of restaurant setup, restaurant consulting, restaurant kitchen setup, menu planning, menu engineering, menu design, menu management, menu analysis, cost analysis, recipe standardization, supply management, staff training and opening management. Menu analysis can be applied with a professional system in Ottoman Palace Cuisine, Traditional Turkish Cuisine, Anatolian Cuisine, Mediterranean Cuisine, Levantine Cuisine, Lebanese Cuisine, vegan and vegetarian cuisines, a la carte restaurants, high-class restaurants, cafes, coffee shops, fast food and special concept restaurants.

 

Correct menu analysis provides the restaurant owner with real data, not assumptions. Which product sells, which product leaves profit, which product creates a burden on the menu, which product should be explained better, which product's price should be updated and which product should be removed from the menu can all be seen clearly.

 

CONCLUSION

Menu analysis is a professional study that reads a restaurant's food menu together with sales, cost, popularity, contribution margin, kitchen workload, supply risk, service performance and guest expectations. A successful restaurant menu does not only look good; it generates sales, leaves profit, does not tire the kitchen, is explained correctly by the service team and helps the guest make a clear decision.

 

For businesses searching for answers to questions such as how restaurant menu analysis is done, how to understand whether a food menu makes money, which products are profitable on the menu, which products do not sell, which products should be removed from the menu and why menu cost analysis is necessary, the correct answer is this: Menu analysis must be done professionally. Because a menu that is not analyzed is managed by guesswork without professional menu management; a menu managed by guesswork can silently consume the restaurant's profit.

 

Chef Ahmet ÖZDEMİR

International Restaurant Consultant

International Culinary Consultant

International Hotel Kitchen Consultant

International Restaurant Setup Consultant

 

* www.restorankurulumu.com

* www.hasascibasiahmetozdemir.com

* www.gastronomyconsultation.com

 

** All rights reserved ©. This article may not be copied, reproduced, or published on another website without the written permission of Chef Ahmet ÖZDEMİR. It may be used in academic studies with proper attribution.