How do you determine the optimal portion sizes and prices for your dishes?

1 Know your costs

The first step to determine the optimal portion sizes and prices for your dishes is to know your costs. This includes the cost of ingredients, labor, overhead, and waste. You can use a recipe costing tool or a spreadsheet to calculate the cost per portion of each dish, based on the yield, weight, and price of each ingredient. You should also factor in the cost of packaging, delivery, and marketing, if applicable. Knowing your costs will help you set a realistic and competitive price that covers your expenses and earns you a profit margin.

2 Know your customers

The second step to determine the optimal portion sizes and prices for your dishes is to know your customers. This means understanding their preferences, expectations, and behaviors. You can use market research, surveys, feedback, and sales data to identify your target market, their demographics, their spending habits, and their satisfaction levels. You should also monitor the trends and demands of your industry, your location, and your niche. Knowing your customers will help you design a menu that appeals to their tastes, needs, and values.

3 Know your competitors

The third step to determine the optimal portion sizes and prices for your dishes is to know your competitors. This means analyzing their menus, prices, portions, quality, and reputation. You can use online platforms, reviews, social media, and mystery shopping to gather information about your direct and indirect competitors. You should also consider the substitutes and alternatives that your customers might choose instead of your dishes. Knowing your competitors will help you position your menu in a way that differentiates your brand, highlights your strengths, and offers value for money.

4 Know your goals

The fourth step to determine the optimal portion sizes and prices for your dishes is to know your goals. This means defining your vision, mission, and objectives for your food business. You should also establish your key performance indicators (KPIs), such as sales, revenue, profit, customer retention, and loyalty. You can use a SMART framework to set specific, measurable, achievable, relevant, and time-bound goals that align with your strategy and values. Knowing your goals will help you align your portion sizes and prices with your desired outcomes and impact.

5 Test and adjust

The fifth step to determine the optimal portion sizes and prices for your dishes is to test and adjust. This means experimenting with different combinations of portions and prices, and measuring their effects on your costs, sales, and profits. You can use a trial-and-error method, a cost-plus method, a value-based method, or a psychological method to set your prices. You can also use a portion control tool, such as a scale, a scoop, or a mold, to standardize your portions. You should also track and evaluate your results, using tools such as a profit and loss statement, a break-even analysis, or a menu engineering matrix. Testing and adjusting will help you optimize your portion sizes and prices based on data and feedback.

6 Communicate and educate

The sixth step to determine the optimal portion sizes and prices for your dishes is to communicate and educate. This means informing and engaging your customers, staff, and stakeholders about your menu choices, values, and benefits. You can use various channels, such as your website, social media, flyers, or signage, to promote your dishes, explain your pricing strategy, and highlight your unique selling proposition. You can also train your staff to upsell, cross-sell, and recommend your dishes, as well as to handle customer inquiries and complaints. Communicating and educating will help you build trust, loyalty, and advocacy for your food business.

7 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?