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.

Do you want to get better visibility to the profitability of your food programs?