How can you use data analysis to identify the most popular menu items among different customer segments?

2 How to collect data for menu analysis?

To collect data for menu analysis, you need to track and record the sales and costs of each menu item, as well as the characteristics and feedback of your customers. You can use various tools and methods to collect data, such as point-of-sale systems, online ordering platforms, loyalty programs, surveys, reviews, and social media. You should collect data for a sufficient period of time, such as a month or a quarter, to capture the seasonal and cyclical variations in your sales and customer behavior.

3 How to segment customers for menu analysis?

To segment customers for menu analysis, you need to group them based on their similarities and differences in terms of their demographics, psychographics, preferences, and behaviors. You can use various criteria to segment customers, such as age, gender, income, location, lifestyle, occasion, frequency, spending, satisfaction, and loyalty. You should aim to create segments that are meaningful, measurable, accessible, and actionable for your business.

4 How to calculate menu performance for each segment?

To calculate menu performance for each segment, you need to use two key metrics: contribution margin and popularity. Contribution margin is the difference between the selling price and the variable cost of each menu item. Popularity is the percentage of total sales that each menu item represents. You can use a menu engineering matrix to plot the contribution margin and popularity of each menu item for each segment, and classify them into four categories: stars, plowhorses, puzzles, and dogs.

5 How to implement menu changes based on the analysis?

To implement menu changes based on the analysis, you need to use various strategies and tactics to optimize your menu for each segment. Highlighting and promoting the stars, which are the high-profit and high-popularity items that appeal to most segments, is one approach. Increasing the prices or reducing the portions of the puzzles, which are the high-profit and low-popularity items that appeal to some segments, is another. Improving the quality or presentation of the plowhorses, which are the low-profit and high-popularity items that appeal to many segments, is also important. Additionally, removing or replacing the dogs, which are the low-profit and low-popularity items that appeal to few segments, may be necessary. Moreover, using menu design elements such as layout, colors, fonts, images, descriptions, and symbols can draw attention to desired items and influence customer decisions. Finally, it is essential to test and evaluate the impact of the menu changes on your sales, costs, and customer satisfaction and make adjustments as needed.

6 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?