Menu Spring Bites

As commodity prices rise there may be no restaurant operator who will not fee the pinch between what they pay for major proteins and their current menu prices.  In many markets operators may believe raising menu prices to be a death wish; however, there are methods to mitigate the rising cost of goods.

One method we have offered to clients is to use menu engineering to create a layout that will potentially promote more guest choices of items with a higher contribution margin for their dining selection.  This can avoid the risky decision to pull many guest favorites from the menu which could result in a guest backlash.

Another method to push back on protein cost increases is to create new menu options utilizing alternate proteins and protein combinations.  These can be introduced across many menu categories from appetizers to entrees so the operator can maintain a manageable menu-mix with menu choices for their guests and potentially more high contribution margin items as well.  We have suggested using eggs, cheeses, legumes and brown rice to complement traditional proteins and in some situations healthy dining options occur as a result.

Following is a recent article we believe offers some additional suggestions and strategies to combat this issue of rising protein commodity prices that operators may find useful as they address how they will maintain their margins.  We hope you will find it insightful and should you seek other alternatives we welcome your inquiries.

Industry observers have mused for some time now that while quick service operators enjoy a large piece of the market share pie their dinner sales have traditionally been softer than they would like to admit. With the advent of fast-casual nipping at their heels and paring away sales it's not a total surprise that an traditional quick service company would finally develop a fast-casual concept.

Of course Chipotle was once a "twinkle in the eye" of industry behemoth McDonald's who took a long look at the concept before finally spinning them off but now we see Yum's Taco Bell developing a Latin themed fast-casual concept that's not designed to attract their core clientele but isn't too far from their comfort zone either.

So we leave you with the following article about this new entry to the fast-casual foray with the eternal Rod Serling-esque introduction, "Submitted for your approval."

A major food processing / food service research group has released findings suggesting that over 75% of U.S. adults believe protein is necessary for a healthy diet.  Furthermore the respondents believe non-meat protein sources are better than traditional meat proteins.

We couldn't agree more as personally (and professionally for clients) we seek non-meat proteins to include whole grains, legumes, nuts and of course tofu, an item we would never become excited about twenty years ago. We believe that while nothing will replace meat proteins for what they offer in flavor and satisfaction it couldn't hurt to give the animal community a break and consume them less often.

We believe the article provides a better overview of the topic so should you prefer to learn more there is a link to it below and we hope you will find it informative and offer thought for conversation and action whether if be personal or professional.  Please enjoy it as we did, thanks.

http://www.preparedfoods.com/articles/113878-protein-potential 

The Value Menu goes Premium?

            The three leading burger QSR’s have offered a new twist on how to create a “Premium” food experience at your basic “burger place” possibly in an attempt to lure market share away from their fast-casual competitors during an economically challenging time.  Whether any of these new menu offerings will stand the test of time at least some of them are currently offered as LTO’s perhaps to gauge the markets mood.

            First let’s review how we came to making the burger a premium item.  Independent operators (some fine dining) began the trend with ultimate premium burgers with ingredients such as Kobe or Waygu beef, seared foie gras, heirloom tomatoes, hydroponic lettuce on a toasted Brioche bun smeared with some variation of an aioli and even sprinkled with gold leaf.  In all their variations, across the globe, these items were offered for as little as $25 upwards of $1,000 or more.

Congratulations, you have determined your passion in life is to own and operate a restaurant.  What appears easy to the layman’s eye through the lens of a television camera or a web page is actually a series of extremely specific details and regulations that must be satisfied just to get the doors open to your life’s dream.  Of all the different types of businesses opened by entrepreneurs each has something in common, a guidepost that will assist with the steps necessary to complete the task.  The one element all restaurants have in common regardless of their cuisine, location, target market and all the other details is the menu.