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by David Klemt David Klemt No Comments

Eliminate Hesitation: Streamline Your Menu

Eliminate Hesitation: Streamline Your Menu

by David Klemt

An AI-generated image of a person holding a stopwatch at a restaurant table while guests read the menu

That’s an interesting stopwatch layout. Also, we don’t recommend sitting with guests and timing them as they review your menu.

Operators should develop an understanding of the concept of the paradox of choice to understand how American guests make menu item selections.

So, allow me a crash course in this psychological concept. There are two prevailing components to the paradox of choice. One is that the more options one has, the less satisfaction they’ll feel upon making a choice. The other is that when presented with an overwhelming number of choices, also known as “choice overload,” people often just fall back to their usual choice rather than trying something new.

A quick note: The paradox of choice isn’t the same as the fallacy of choice. That concept relates to presenting someone with limited, extreme choices to drive them to ignore all of the other choices they could consider and select.

Understanding the paradox of choice will help an operator tackle a key task: streamlining their menus.

A survey from US Foods earlier this year contains quite a few intriguing revelations. Among their findings, one stands head and shoulders above the rest, at least to me: Almost 80 percent of Americans find deciding what they want to order at a restaurant difficult. Further, one factor outpaces all others when it comes to difficulty choosing.

Hence, my explanation of the paradox of choice at the top of this article.

Menus are too Big

There are two key factors making it difficult for Americans to choose what to order at a restaurant. Nearly a quarter of respondents23 percentindicate that they’re simply picky people. Alright, fair enough.

But the main factor, unsurprisingly, is that restaurants are presenting guests with too many options. That’s according to 54 percent of survey respondents. Quick math tells me that’s more than double the picky eaters.

Another 15 percent of US Foods survey respondents, however, say they have no trouble deciding what they want to order. Eight percent say they’re indifferent, which is an entirely different problem. A guest who’s indifferent to the restaurant and menu isn’t an engaged guest, and that’s not going to inspire loyalty and repeat visits.

Of course, no operator can please everyone, and some people aren’t going to be blown away no matter how good the food, drinks, and service can be.

So, does this mean that Americans are indecisive, facing paralysis whenever a servers asks for their order? Well…maybe. We have a lot going on, and “overwhelmed” would describe many of my fellow Americans right now.

However, the real culprit is menu size. In trying to please and retain guests, some operators are loathe to shrink their menus.

Most KRG clients can attest to the following: the president of our agency, Doug Radkey, prefers a smaller, streamlined menu. In fact, he prefers menus not pass the 25-item mark. Given his druthers, Radkey favors 12 to 15 items.

There are several reasons for this preference. Chief among these are controlling and reducing labor and food costs. (Radkey prefers to control costs rather than cut them, realistically.) Other reasons are less strain on the back of house, easier cross-utilization of ingredients, consistency, and reduced ticket times.

We can also add improving guest satisfaction to the list. On average, an American restaurant guest takes nine minutes to decide what they want to order at a restaurant. Streamline and shrink the menu, and this number should fall, while satisfaction rises.

Anyone should see that a smaller, sharper menu represents wins across the board.

AI image generator: Microsoft Designer

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2023 State of the Menu: Datassential

2023 State of the Menu: Datassential

by David Klemt

Korean fried chicken wings

The annual 2023 State of the Menu by Datassential includes an interesting metric to gauge restaurant recovery: menu size by segment.

Hosts Jack Li, Mike Kostyo, and Claire Conaghan discuss a handful of topics during this webinar. Host Li touches on food-forward cities at the beginning of this presentaiton. Kostyo shares some of the most innovative menu items out there right now. And Conaghan dives deep into menu trends.

Industry professionals interested in watching this webinar on demand can register to do so here.

There are a handful of metrics people are using to measure post-pandemic restaurant recovery. Labor is, of course, receiving a lot of attention. People are also tracking traffic, average check size, revenue, and profits.

One metric Datassential is keeping tabs on is menu size per restaurant segment. Additionally, they’re tracking each segment’s top-growing food and beverage items.

Notably, however, in tracking menu size, Conaghan focuses solely on food and non-alcohol beverage items, omitting catering and alcohol.

Chains vs. Independents

Starting things off, Conaghan addresses the overall menu size trend. That is, menus are noticeably smaller in comparison to pre-pandemic sizes.

Interestingly, chain restaurants don’t appear to be in any rush to move away from this trend. In fact, Conaghan notes that chains appear to be further reducing the size of their menus. This has been the trend over the past 12 months.

According to Conaghan, fine dining also seems to be happy to shrink their menus. Menu size shrunk the most among restaurants in this segment. In comparison, quick-service menu sizes decreased the least.

However, independent restaurant operators appear to be going in the opposite direction from their chain counterparts. In contrast, indies have been growing the size of their menus the past 12 months.

Menu Size by Segment

Fast Casual

Per Conaghan, the only segment to reach pre-pandemic menu size is fast casual. In fact, this category of restaurant is often exceeding pre-pandemic items-per-menu size.

This increase in menu size is attributable to operators “leaning into” core cuisine items. For example, sandwiches, Mexican entrees, and pizza.

However, the fastest-growing food item on fast-casual menus is the chicken wing. According to Conaghan, it’s easy for operators to innovate with chicken wings.

A restaurant doesn’t have chicken wings? All they have to do is add them, starting with simple preparations. If a restaurant does have chicken wings on the menu already, innovation is as simple as adding new flavors.

As far as the fastest-growing drink for fast-casual restaurants, it’s dessert beverages.

QSR, Casual Dining, and Midscale

These three segments are “very, very close” to reaching pre-pandemic menu sizes.

As midscale operators are likely very aware, this segment tends to have the largest menus. I wouldn’t be surprised, therefore, if a number of midscale concepts review their items per menu, their costs, and decide they can perform well with slightly smaller menus moving forward.

Unsurprisingly, chicken wings are the food item growing most quickly on QSR food menus. Oh, and barbecue chicken wings are the fastest-growing food item among casual dining restaurants.

Perhaps a bit more eyebrow-raising is the fastest-growing beverage type for QSRs: energy drinks. Boba and flavored iced teas are growing fastest on casual-dining drink menus.

For midscale restaurants, dessert samplers are the fastest-growing food items. Think “dessert charcuterie” when trying to picture a dessert platter. Another way to think about the dessert sampler is a static dessert cart with small bites of each dessert on the menu.

Fine Dining

Again, this segment is the furthest from pre-pandemic menu size. And, again, operators in this category seem happy with this trend.

An interesting note Conaghan makes about this segment is what many operators are using to fill out their menus: desserts. This is, she says, an area where fine dining can differentiate itself from other concepts.

Per Conaghan, bao, applesauce, and summer squash are growing the fastest on fine-dining food menus.

Now, I may have slipped into a fever dream during this portion of the Datassential webinar. Because unless I’m mistaken, the Shirley Temple has been identified as the fastest-growing beverage in the fine-dining space.

Pricing

Okay, so this segment of the 2023 State of the Menu webinar isn’t really a recovery metric.

However, it’s interesting, and something Jack Li says about chain restaurant pricing made me chuckle.

Most Expensive vs. Least Expensive

First, some straightforward data.

The following list identifies the five most-expensive ZIP codes for chain restaurant menu pricing. Anyone who wants the full list of 15 most-expensive ZIP codes can watch the webinar.

  • 10036 (New York, NY)
  • 96707 (Kapolei, HI)
  • 98902 (Yakima, WA)
  • 96815 (Honolulu, HI)
  • 99503 (Anchorage, AK)

It’s understandable to think this would consist entirely of New York City, Los Angeles, or San Francisco ZIPs. But when we consider what it costs operators to import food to Hawaii and Alaska. Additionally, Washington and New York are among the states with the highest minimum wage. Operators need to recover those costs somehow.

And now the five least-expensive ZIP codes:

  • 78526 (Brownsville, TX)
  • 75224 (Dallas, TX)
  • 76106 (Fort Worth, TX)
  • 31907 (Columbus, GA)
  • 31701 (Albany, GA)

Pricing Logic

Now, on to what Li says during the webinar that makes me laugh.

Nationwide, the average price of a McDonald’s Big Mac in the US is $5.26. (A caveat: This webinar took place in October. This price may have increased or decreased by now.)

However, the lowest price for a Big Mac is $3.49 at a location in Wilburton, Oklahoma.

So, what’s the highest price, and where can one find these pricey Big Macs? Three McDonald’s locations sell the burger for $8.29. That’s nearly two-and-a-half times the lowest-priced Big Mac.

Summarizing pricing variations among chain restaurants succinctly, Li made me laugh with the following: “Store pricing often just doesn’t make sense.”

Going further, Li says Datassential shows that the more franchised a restaurant chain is, the more variances in pricing will occur.

The full webinar can be viewed here.

Image: Leonardo Luz on Pexels

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