High Profit Margin Foods?
Have restaurants always looked to the high profit margin foods? This is a measure to offset plates costs and boost profitability across their menus. But those foods are few and far between these days as the costs of good continue to rise.
Inflation, supply chain disruptions, and ongoing global issues are pouring tons of volatility into food costs. These price fluctuations are making it increasingly difficult to spot them. Now you will be ready to make easier the task of optimize your restaurant finances.
What is a high margin menu?
Crafting successful restaurant menus takes creativity. It’s not as easy as determining which dishes have cheap or high margin ingredients and loading your menu with them. You can’t rely solely in popular dishes, because the can be too costly. Then you have your expensive dishes, which probably bring in revenue but require more skill and labour to prepare.
Categories of menu items
When you take a look of each item on your menu, you can put them into one of these categories:
- Stars: high profitability, high popularity.
- Puzzles: High profitability. low popularity.
- Plowhorses: Low profitability, high popularity.
- Dogs: Low profitability, low popularity.
Track your food costs
Outsides pressures are disrupting and driving up food costs. While you can’t control supplier prices, you can control how much you spend and what you spend it on. Tracking your costs food begin with invoice processing automation. Restaurant specific invoice tools empower you to keep tabs of daily, week-over-week prices change, and more.
With invoice processing automation in place, here are a few keys you must have in mind to keep track of food costs and monitor you menu profitability:
- Know your plate cost.
- Understand the value of each recipe.
- Take inventory each week.
Where do you go from here?
The starting point of building a more profitable menu is more closely tracking your costs. That’s the only way to know which of your plates is a “dog” and which is a “star”.
Now that we are near to the change of season, you can use these advises to create the best Fall menu.