Ten Ways to Increase Your Menu Profitability

Between fewer customers, many of who are demanding more satisfaction but expect to pay less for it, and rising costs, not to mention plenty of competition doing their best to rise to the challenge, much of the wiggle room many restaurateurs have had in the past in profitability is gone.

The best restaurateurs have always scrutinized every aspect of their business for ways to increase efficiency to maximize profits. Today, it is required for every operator simply to remain in business.

Of course, any attempts to increase profitability must be conceived of with the big picture in mind. Saving a little money on food costs by serving disappointing food or trimming labor costs by providing annoying service won't increase your profits; it will eventually put you out of business.

Let's look at 10 things you can do, all focused on your menu, to increase your profitability that won't lower the quality of your customers' experiences but will, in one way or another, actually increase it.

1. Improve your inventory/ordering system. As we all know, food costs are one of a restaurateur's biggest expenses. If handled well, they will be a key factor in your success. Mishandled, they can make it impossible for you to make any money. Good food costs start with good ordering, which is largely dependent on how useful your inventory is. The goal of purchasing is to have just what you need, when you need it, at the best price you can get it for, while still receiving an acceptable level of service from your vendor.

Every purchase should be determined by your menu, what you already have in-house, and your anticipated amount of business. Whoever is placing the orders should be intimately familiar with all three factors.