Food Cost and the Popularity of Menu Items

The popularity and price of each menu item will impact the amount spent by your customers…..and, as a result, influence the average check and daily sales. Furthermore, the sales mix will determine what overall food cost will be. If it becomes necessary to reduce food cost, you must change one or more of the following elements:

·         The menu price.

·         The portion size or number of accompaniments.

·         The food cost of the ingredients.

·         The menu mix.

Simply stated, you can raise or discount prices, increase or decrease portion sizes or accompaniments, shop for better ingredient prices; or attempt to alter sales mix by emphasizing higher-prices or lower-cost menu items through internal advertising and suggestive selling.

A properly designed menu can direct the attention of your customers to specific items and increase the likelihood that those items will be order more frequently than random chance consideration. When those items are low food cost, high in gross profit, and increase the average check, the profit picture brightens and food cost improves. The menu clearly does have a significant impact on food cost, and if used properly it can be an important cost-control tool.

 

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