In this time of economic uncertainty, when there is a growing market of individuals who are conscious about their purchases, it is best that your businesses have cutting-edge approaches to maximize profits in order to survive. In the food business today, having a list of regular customers is not enough to remain successful. One needs a well-performed sales mix analysis and pricing strategies to keep the food business thriving.
EGS has over 20 years of experience in providing chefs, restaurateurs, hospital professionals and caterers with solutions to increase their productivity, profit margin and work- efficiency.Through these we have been committed to quality, reliability and drive to provide the best possible tools in improving the way food-service business are handled.One of these latest developments in our solutions is the Menu Engineering module.
It is likely that executive chefs know the simple costs of particular dishes in their menu, but most do not really have an idea of how well these dishes perform as part of their restaurant's sales. This is where the Menu Engineering module comes in handy.
Menu Engineering is one of the reliable modules found within the EGS CALCMENU+EGS F&B Control Solution, which makes it quite a popular tool among food professionals. This module aims to improve your strategy in sales mix analysis and menu pricing to bring about an increase in profit, productivity and efficiency without the need to pile up on food costs. It is undoubtedly one of the key elements in the success of your business. Its effectiveness and efficiency can be summed up in its three main functions:
Menu Engineering analyzes.
Menu Engineering initially works by analyzing the existing recipe costs of a competing meal group along with sales data. It also considers factors like the targeted average meal price suited to your establishment and the current market situation in your area. It analyzes your customers’ exact price resistance point and gauges which of the items in your menu are best-sellers and highly-profitable. Likewise, it provides an analysis on which items are costing you time and money but are not making a mark on sales and which ones contribute well or are popular but are not making enough profits.
Menu Engineering forecasts.
Using the mentioned analysis, the Menu Engineering module can tell you which items you should retain in your menu, which ones are needed to be highlighted or promoted and which items you can do without. You can also forecast future sales profitability and take note of sales trends that can be applied in planning your menus. One way that this module achieves this is by allowing you to “play” with hypothetical numbers of items sold, selling prices and the costs of goods to see the effect on the overall food costs and other parameters.
Menu Engineering creates strategies.
With the analyzed and forecasted data serving as benchmarks for comparison, Menu Engineering then provides the opportunity for professionals like you to come up with working guidelines to further improve profitability and savings.
It allows you to make intelligent strategies to improve your menu marketability , one of which is coming up with a smart marketing plan which involves menu pricing strategies, product merchandising, applying suggestive selling approaches, re-evaluating your menu layout and positioning--to name a few.
Furthermore, an effective layout can be realized through a more aggressive branding and highlighting strategy, a well-established menu format, a precise positioning and category placement as well as through product sequencing.
Menu Engineering is undoubtedly a vital element when you want your business to keep a stable footing in the food-service industry. With this simple tool on hand, there can only be room for more productivity and profitability in your business and thus, only more success.