Don't Ignore This Important Step When Planning a Restaurant Menu
Too many restaurant owners and chefs skip a critical step when planning and pricing their menus, and it’s costing them big. When it comes to creating a menu, a lot of restaurant owners focus on what looks good, sounds good or what’s trendy. But here’s the problem — none of that matters if your menu isn’t profitable. Don’t ignore this important step when planning a restaurant menu.
Why good-looking menus aren’t enough
So, what is the step too many operators skip? The ever-essential recipe costing cards.
I get it — this isn’t the sexy side of menu planning. But let me ask you this: if you don’t know exactly what every dish costs you to make, how can you possibly price it for profit?
What happens when you skip recipe costing cards
Without recipe costing cards, you’re guessing. You price dishes based on gut feelings or what the competition charges. What happens then?
- Your food costs creep up without you realizing it.
- You end up selling dishes that lose you money.
- You miss out on making your menu work for you.
What recipe costing cards do for your bottom line
Now, when you take the time to create recipe costing cards, everything changes. You get:
- Clear, accurate food costs for every item on your menu.
- Pricing that ensures every dish makes you money.
- A menu built for profit, not just popularity.
And here’s a pro tip: you don’t have to do it all yourself. Train your chef or kitchen manager to keep those recipe cards up to date.
Menu engineering: The secret to staying profitable
Menu engineering isn’t a one-and-done process. It’s something you need to review regularly.
Start by looking at:
- Accurate, up-to-date recipe costing cards
- Your menu mix (what your customers are buying, according to your POS system)
By reviewing these regularly, you’ll know what your ideal food cost should be. From there, you can:
- Raise prices where needed
- Tweak portion sizes
- Eliminate dishes that aren’t selling
Use menu psychology to drive profits
Menu design matters. How you lay out your menu can encourage customers to order your highest-profit items. Consider:
- Strategic placement of profitable dishes
- Descriptive language that sells
- Eye-catching boxes, pictures and even font choices
These subtle adjustments influence customer choices and boost profitability without sacrificing value.
Don’t forget about vendor negotiations
Another overlooked aspect? Vendor negotiations.
Ingredient costs change constantly (and let’s be honest — they mostly go up). If you’re not actively managing supplier relationships, you might be overpaying.
Most restaurants should work toward:
- Negotiating a prime vendor agreement with one broadline distributor
- Adding a group purchasing organization (GPO) to their toolbox
These two moves alone can drop your food costs by 3 to 7 points.
Ask yourself: Do I know my numbers?
Before you print your next menu, ask yourself:
Do I know my numbers?
If the answer’s no, stop what you’re doing and get those recipe costing cards done — today.
Let’s build that profitable restaurant you’ve always dreamed of—without the stress.
Be sure to visit my YouTube channel for more helpful restaurant management video tips.
