How can you increase the profitability of low-performing menu items?

Menu Analysis: Conduct a thorough analysis of your menu to identify low-performing items and understand the reasons behind their underperformance. Price Adjustment: Evaluate the pricing of low-performing menu items and consider making adjustments to better align with customer preferences and market demand. Promotions and Specials: Create targeted promotions, specials, and limited-time offers to generate excitement and drive sales for low-performing menu items. Menu Engineering: Apply menu engineering principles to strategically position low-performing items for greater visibility and appeal. Upselling and Cross-Selling: Train staff members to upsell and cross-sell low-performing menu items to customers during the ordering process.

In my opinion , to increase the profitability of low-performing menu items first thing a business should do is to analyze the menu data and identify the problem areas. This can be done using various methods and tools and to measure the popularity and profitability of each item, such as menu engineering, sales mix analysis, contribution margin, food cost percentage, and break-even point. Once that’s identified business should go to the next step to push those items in aggressively on digital platforms ( keeping in mind that the business is already having one) or through staffs . This can also be done by slashing prices down or by promoting combos, happy hour items etc.

Optimizing profitability for underperforming menu items requires strategic pricing adjustments. Employing techniques like value-based, psychological, bundle, or competitive pricing can shape customer perception and behavior. Adjusting prices based on popularity and profit margins enhances item contributions. Cross-selling and upselling complement pricing strategies, boosting overall revenue by increasing average check size. Strategic pricing not only improves profitability but also maximizes customer satisfaction and business viability.

Revamping menu design is key to boosting the profitability of low-performing items. Strategic placement, captivating imagery, and enticing descriptions draw attention and stimulate interest. Employing techniques like strategic positioning, vivid visuals, and compelling language accentuates these items, enticing customers to explore and order them. By leveraging design elements effectively, businesses can elevate the visibility and appeal of underperforming menu items, driving sales and maximizing revenue.