Restaurant Management System to Improve Menu Engineering
Restaurant Management System to Improve Menu Engineering - Menu engineering is a popular search topic. It’s a buzzword and, when done right, can have a big impact on your restaurant’s sales. To do restaurant menu engineering correctly, you have to make sure you’re using proper restaurant management systems, whether it’s software or spreadsheets with formulas. If you’d like to learn a restaurant management system to improve menu engineering, watch this tip. #increaserestaurantsales #menuengineering #restaurantmanagementsystem ****Get three key principles to running a successful restaurant: https://dsp.coach/3-key-principles ? I wrote a book for restaurant owners and managers: https://amzn.to/2ZYlL7Y ? Be sure to subscribe to this channel to get alerts when I post a new tip: http://bit.ly/2Yk484P ? Take me on the go and listen to my podcast: https://dsp.coach/podcast ********************************** Welcome to my YouTube Channel. I am David Scott Peters, a restaurant coach and speaker who teaches restaurant operators how to cut costs and increase profits with my trademark Restaurant Prosperity Formula. Known as THE expert in the restaurant industry, I apply my no-BS style to teach and motivate restaurant owners to take control of their businesses and finally realize their full potential. Thousands of restaurants have used my formula to transform their businesses. To learn more about me and my coaching program, visit http://www.davidscottpeters.com. ********************************** Let's first make sure we're all on the same page here. In order to perform menu engineering, you have to have current up to date recipe costing cards for every menu item on your menu. Plus you need a point of sale system that can give you a PMIX report, a product mix report, also known as velocity report or item-by-item sales mix report. This report tells you how many items you sold of every item during a period of time. Next, you need to have a menu engineering tool like a spreadsheet or food costing software that allow you to easily change and analyze your data. The restaurant owners I work with use my Menu Profitability Monitor Google spreadsheet. That literally kind of gives you the best world of both software and spreadsheet, allowing you to do things automatically but be able to change and find where your numbers should be. Whether it's a spreadsheet, my Menu Profitability Monitor or software, make sure it gives you: Recipe cost Sale price Number of items sold Cash contribution Mix percentage by category and for the full menu Average daily sales units (what you sell on a daily basis) Here are the steps you want to follow when you have all this information. Number one: Sort your report by menu category and in each category in descending order – appetizers, soups, salads, sandwiches, entrees, desserts, for example. Make sure you sort what you sell the most up to whatever you sell the least of. This is important because you want to know what your top sellers are and what your bottom sellers are. It’s helpful to see it in order so you’re not searching all over the report. Number two: Look for high food cost items. Go down the food cost percentages and find the things that jump out, like a 38 percent or 50 percent. Then start digging to figure out why the food cost is so high. It’s likely for a number reasons. Number three: Review your top one, two or three selling items in each category and raise the price. What do I mean? Well, if they're that damn popular, they're that damn popular at any price. Number four: Look at all the items you sell and look at the average per day. If you sell one or less on a day, I want you to think about dropping that item. Not enough people are ordering it. Number five: Add or remove items, but not customers. Let's say you’re going to get rid of that loser item. How do you meet the needs of the customers that were ordering it? Put them somewhere else in the menu in a similar enough food item. Number six: Change the menu mix with menu merchandizing strategies. There are certain strategies that take advantage of how your customers review a menu. Number seven: Watch your food cost as it drops when you make these changes. As you make the changes, whether it's getting rid of a loser, changing it, moving it over, raising a price on popular items, reducing a cost, fixing an item, watch how your sales increase overall, your food cost goes down and your cash contribution goes up. ********************************** Find more about how to run a restaurant business on my other platforms: ? Facebook: http://www.facebook.com/davidscottpetersbiz ? Instagram: http://www.instagram.com/davidscottpeters ? Twitter: http://www.twitter.com/restaurantxpert ? Subscribe to YouTube: http://bit.ly/2Yk484P ? Podcast page: https://dsp.coach/podcast
Restaurant Management System to Improve Menu Engineering - Menu engineering is a popular search topic. It’s a buzzword and, when done right, can have a big impact on your restaurant’s sales. To do restaurant menu engineering correctly, you have to make sure you’re using proper restaurant management systems, whether it’s software or spreadsheets with formulas. If you’d like to learn a restaurant management system to improve menu engineering, watch this tip. #increaserestaurantsales #menuengineering #restaurantmanagementsystem ****Get three key principles to running a successful restaurant: https://dsp.coach/3-key-principles ? I wrote a book for restaurant owners and managers: https://amzn.to/2ZYlL7Y ? Be sure to subscribe to this channel to get alerts when I post a new tip: http://bit.ly/2Yk484P ? Take me on the go and listen to my podcast: https://dsp.coach/podcast ********************************** Welcome to my YouTube Channel. I am David Scott Peters, a restaurant coach and speaker who teaches restaurant operators how to cut costs and increase profits with my trademark Restaurant Prosperity Formula. Known as THE expert in the restaurant industry, I apply my no-BS style to teach and motivate restaurant owners to take control of their businesses and finally realize their full potential. Thousands of restaurants have used my formula to transform their businesses. To learn more about me and my coaching program, visit http://www.davidscottpeters.com. ********************************** Let's first make sure we're all on the same page here. In order to perform menu engineering, you have to have current up to date recipe costing cards for every menu item on your menu. Plus you need a point of sale system that can give you a PMIX report, a product mix report, also known as velocity report or item-by-item sales mix report. This report tells you how many items you sold of every item during a period of time. Next, you need to have a menu engineering tool like a spreadsheet or food costing software that allow you to easily change and analyze your data. The restaurant owners I work with use my Menu Profitability Monitor Google spreadsheet. That literally kind of gives you the best world of both software and spreadsheet, allowing you to do things automatically but be able to change and find where your numbers should be. Whether it's a spreadsheet, my Menu Profitability Monitor or software, make sure it gives you: Recipe cost Sale price Number of items sold Cash contribution Mix percentage by category and for the full menu Average daily sales units (what you sell on a daily basis) Here are the steps you want to follow when you have all this information. Number one: Sort your report by menu category and in each category in descending order – appetizers, soups, salads, sandwiches, entrees, desserts, for example. Make sure you sort what you sell the most up to whatever you sell the least of. This is important because you want to know what your top sellers are and what your bottom sellers are. It’s helpful to see it in order so you’re not searching all over the report. Number two: Look for high food cost items. Go down the food cost percentages and find the things that jump out, like a 38 percent or 50 percent. Then start digging to figure out why the food cost is so high. It’s likely for a number reasons. Number three: Review your top one, two or three selling items in each category and raise the price. What do I mean? Well, if they're that damn popular, they're that damn popular at any price. Number four: Look at all the items you sell and look at the average per day. If you sell one or less on a day, I want you to think about dropping that item. Not enough people are ordering it. Number five: Add or remove items, but not customers. Let's say you’re going to get rid of that loser item. How do you meet the needs of the customers that were ordering it? Put them somewhere else in the menu in a similar enough food item. Number six: Change the menu mix with menu merchandizing strategies. There are certain strategies that take advantage of how your customers review a menu. Number seven: Watch your food cost as it drops when you make these changes. As you make the changes, whether it's getting rid of a loser, changing it, moving it over, raising a price on popular items, reducing a cost, fixing an item, watch how your sales increase overall, your food cost goes down and your cash contribution goes up. ********************************** Find more about how to run a restaurant business on my other platforms: ? Facebook: http://www.facebook.com/davidscottpetersbiz ? Instagram: http://www.instagram.com/davidscottpeters ? Twitter: http://www.twitter.com/restaurantxpert ? Subscribe to YouTube: http://bit.ly/2Yk484P ? Podcast page: https://dsp.coach/podcast