October 2024

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Menu Engineering Strategies to Maintain Profitability Amid Rising Costs

[vc_row][vc_column][vc_column_text] What is Menu Engineering? Key Menu Engineering Strategies 1. Raising Prices Without Alienating Customers 2. Increasing Perceived Value 3. Profitability Analysis How to Calculate Food Cost per Serving How to Calculate Contribution Margin 4. Item Placement & Visual Design 5. Pricing Psychology 6. Portion Control & Ingredient Substitutes 7. Seasonal Limited-Time Offerings 8. Monitoring and Adjusting with POS Data 9. Competitor Analysis In today's volatile economic climate, restaurant owners face relentless pressure to maintain profitability. Rising food costs, inflation, and supply chain disruptions continue challenging the industry, forcing many businesses to rethink their pricing and menu strategies. While some operators may be tempted to raise prices directly, menu engineering is a more strategic approach that can help maintain profitability without driving customers away. This framework uses design, sales data, consumer psychology, and item optimization to create profitable menus that appeal to customers. In

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The Impact of Rising Food Costs: What’s Next for Menu Pricing

[vc_row][vc_column][vc_column_text] Increased Labor Costs Higher Ingredient Prices Due to Inflation Supply Chain Disruptions Cost of Goods Sold (COGS) - Why It Matters for Menu Pricing What is COGS? How to Calculate COGS Why COGS Is Important The Effect of Rising COGS on Menu Pricing Why Transparent Communication is Essential for Customer Satisfaction Saving on Food Costs In recent years, restaurant operators have grappled with various challenges, from inflation and labor costs to ongoing supply chain disruptions. As these pressures intensify, the rising cost of food has become a crucial issue, prompting restaurants to reassess their menu pricing strategies. Finding the balance between maintaining profitability and keeping customers satisfied has never been more important. Let’s examine the main drivers of rising food costs, explore how effectively managing the Cost of Goods Sold (COGS) can help, and offer strategic insights on adjusting

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