Well-designed food programs can drive significant sales, profits, and loyalty. However, many programs fail to achieve industry benchmarks as the root causes of profitability can be difficult to identify.
5 Pillars of Foodservice Profitability
Menu Optimization
- Signature items
- Day-part relevance
- Value of variety: incremental vs. cannibalization
Value (Price & Promo)
- Pricing optimization: entry point, add-ons, competitive landscape
- Promotional effectiveness
- Loyalty programs: expand baskets & increase trip frequency
Work Design & Kitchen Layout
- Methods & processes
- Restaurant ergonomics: people = design
- Labor efficiency
Cost Structure
- Scratch vs. outsource
- Wholesaler contracts
- Supply cost controls
Technology & Analytics
- Frictionless: kiosks, delivery, drive-thru, digital
- Production planning & recipe management
- Inventory management
- Data reporting
Changing consumer shopping habits are driving an evolution of foodservice offers and experiences.
It is paramount that operators revisit all areas of their food programs to ensure that true profitability is understood, improvement opportunities are identified, and gaps are closed.