Saturday, February 24, 2024

2009 March: A Pizza My Thoughts

2009 March: A Pizza My MindThe common buyer spends lower than 40 seconds wanting over your menu. In that point, the mind kick-starts into overdrive and a buying resolution is made primarily based on emotion, consolation zone, curiosity and value.

A few of your menu decisions contribute heaps more money to the underside line than others. A few of your menu gadgets are highly regarded, in addition to worthwhile. The remainder should not.

The trick is to determine which gadgets are winners and that are losers. You may additionally marvel how one can affect the speed-reading buyer to order probably the most worthwhile entrees. One factor to remember is that this: it isn’t about promoting extra pizza — it’s about promoting extra of probably the most worthwhile menu gadgets.

And, while you attempt to determine your most worthwhile gadgets, right here’s one other trace: it’s not in regards to the meals value proportion.

I exploit a system that I name Menu Revenue Max. Right here’s how the thought works: Let’s take a look at your giant specialty pizzas. Chances are you’ll provide a hen, taco, veggie, Margherita, Hawaiian, home particular and my favourite, the Bodacious BLT. You’ve got carried out the work and have established a meals value in proportion and a meals value in greenback quantity. The price of components to make the pizza subtracted from the menu worth is the ever-important contribution margin (CM). These pizzas will usually run between 25-35 % meals value. A number of of them will yield greater than common CM ($13 to $17 per sale), and a few will solely yield $7 to $11 per pie gross revenue. When you had been solely going to promote a set finite quantity in a mean week’s time, which of them would you wish to promote probably the most of? The excessive or low CM pizzas?

Let’s say my store offered, hypothetically, 1,000 specialty pies per week. My fl iers and menus had been redesigned primarily based on historic ordering information from my POS system experiences. My new menu design, structure and visible attraction steered my prospects to order extra of the extra worthwhile pizzas. Twenty cents right here, 50 cents there and fairly quickly we’re speaking 1000’s of brand-new revenue {dollars}. This process is repeated in each class of entrees: appetizers, sandwiches, salads, pasta, drinks and so forth.

By renaming, re-pricing, repositioning or eradicating entrées, your backside line will balloon with no extra improve of buyer counts. This technique is utilized by Net-based retailers, airways, grocery shops and plenty of retail giants. They monitor probably the most bought and worthwhile gadgets and entice you to organize them while you buy. You solely want three items of knowledge to make this technique a actuality: menu worth, meals value in {dollars} and the variety of instances every merchandise was ordered in a month’s time.

Parting thought: 1,000 pizzas instances an additional 50 cents CM will add $500 to your backside line. We haven’t even began on the remainder of the menu, like wings and salads. Get began at this time. ?

Massive Dave Ostrander owned a extremely profitable unbiased pizzeria earlier than changing into a guide, speaker and internationally sought-after coach. He’s a month-to-month contributor to Pizza As we speak and leads seminars on operational subjects for the household of Pizza Expo tradeshows.

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