LFTL - Menu Engineering for Profitability with Chef Matt Adler
We all know that keeping food costs tight is essential to a successful restaurant. But managing those costs effectively isn't a solo endeavor. Chefs and cooks, the backbone of any kitchen, need to understand the critical role they play in maintaining profitability. One of the most impactful ways to achieve this is through smart menu engineering.
This month's Q&A will explore how to craft a menu that not only delights diners but also maximizes your bottom line. We chatted with Chef Matt Adler to dig a little deeper - Matt is a James Beard Semifinalist, Chef and partner at Cucina Morini, Caruso’s Grocery, and Culinary Advisor at Osteria Morini, and also operates a consultancy, MRA Culinary. He delved into strategies like creatively using humble ingredients, utilizing ingredient overlap across dishes, and other key techniques that empower your team to contribute to the financial health of your business, one delicious and profitable plate at a time.
Harmony: How do you go about setting a target food cost for each restaurant you run or consult on? Is it the same across the board or do you adjust for each menu style or format?
Each business is different, it really helps to understand the rest of the cost structures which can help set goals for food cost/labor costs etc. If rent happens to be a really good deal then that might give you a bit more wiggle room on your food cost which will help give you a competitive edge. In my restaurants we are able to run a very sharp foot cost, but that's often offset by the labor needed to make fresh pasta/bake bread/butcher meat and fish etc. It's really all about the bottom line and small adjustments to get profitability where you want it.
Harmony: Beyond simply calculating food cost percentage, what other factors should chefs consider when designing or refining a menu for profitability? (Seasonality, labor, waste reduction, etc?)
Cross utilization is very important, the product needs more than one application on the menu so that inventory turns over quickly. The ability to fully use the product before it goes bad is imperative. It's fine to have a really beautiful expensive steak on the menu but if you have to buy a big slab of meat that you won't go through before it goes bad, it's really going to hurt your cost of goods.
Harmony: Can you share a specific example of a dish that was successfully re-engineered to improve profitability without sacrificing quality or customer appeal? What changes were made, and what was the impact on the bottom line?
I used to buy a perfectly sized 6oz chicken breast at one restaurant, which I paid a premium for. I was able to make the change to a larger size range which resulted in significant savings. Then I figured out a way to use the byproduct from trimming the chicken in another dish which had a 2 percentage point positive impact on food cost - and that new dish turned into one of our best food cost items.
Harmony: How can restaurants strike a balance between using high-quality ingredients and maintaining reasonable food costs? Are there strategies for sourcing ingredients that offer both quality and value?
My best advice here is to ensure you are investing in the products that the guest will recognize as high quality. At my Italian/American restaurant that's tomatoes and cheese. At my Sicilian restaurant that's the best quality fish. Not everything can be the most expensive/best products you can get, at least not at the prices I want to charge. So you really need to strike a balance and invest in the ingredients that will matter most to the guest
Harmony: What role does menu layout and design play in influencing customer choices and ultimately, profitability? Are there any psychological principles that restaurants can leverage in their menu design?
I tend to leave this to the designers, I know what I like when I see it but in general as long as menus are laid out in clear and concise ways, I'm less focused on design.
Harmony: Last, but certainly not least - how do you foster genuine buy-in from your team regarding the importance of menu engineering for profitability? What tactics have you used to move beyond “it’s your job” and inspire active participation?
Number one is communication, setting clear and attainable goals for the team and giving them the tools to achieve them. Let them know what the food cost should be, then each week let them know if they have hit it. I'm not a big fan of complicated spreadsheets and so on, I've had the most success just adding up how much money we've spent that week and dividing it by our food sales. In general, if you are purchasing correctly, this is the best way (I've found) to keep an eye on food cost. Inventory can be useful but it can also be burdensome and inaccurate. I much prefer chefs in the kitchen, reading invoices and checking on quality, versus sitting in an office looking at a computer screen.
We loved having this conversation! If you work with Harmony, be sure to talk to your accounting team about tools to help with menu costing and engineering. Or you can hire a professional like Chef Matt Adler to come in and work on the menu with your team. The return on investment often outweighs the cost!