Monday, February 25, 2008

MENU ANALYSIS - The DOG:(

DOG – Low Profitability and Low Popularity
1. The natural inclination is to wipe out the dog menu items. (Personally, I think this category should be called “cats”) They are not selling and if they do sell, they don’t make an adequate margin. Possibly, they may cost the restaurant to even stock the ingredients in-house.

2. Raise the price and keep them on the menu. Why? Imagine a party of four goes to dinner at a steakhouse where one of the guests doesn’t care for red meat. All steakhouses have chicken, pasta or seafood in addition to steak because they realize that not all customers can or want to eat red meat. If the price is raised on a dog item, they still may not sell, but when the non beef eating customer comes into the restaurant they are going to pay for the item because their other options (starving yourself) don’t seem as desirable.

3. Remove the item from the menu, but keep the ingredients in-house (assuming they are relatively shelf stable) in order to make special orders when the situation arises. And this item should still be priced higher.

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