Menu Simplification Helps Operators Cope with Labor Crunch
By May of this year, the NRA reported that employment at eating and drinking places was still down about 12% from pre-pandemic levels
Eliminating items drives efficiencies, creates excitement through limited-time specials.
Finding adequate staffing has been one of the biggest challenges the restaurant industry has faced in recent months as states have loosened restrictions on dining capacity.
The majority of restaurant operators across all segments of the industry reported that their staffing levels were below normal at the start of the year, according to the National Restaurant Association’s 2021 State of the Restaurant Industry report. By May of this year, the NRA reported that employment at eating and drinking places was still down about 12% from pre-pandemic levels, citing data from the U.S. Bureau of Labor Statistics.
The majority of restaurant operators across all segments of the industry reported that their staffing levels were below normal at the start of the year, according to the National Restaurant Association’s 2021 State of the Restaurant Industry report. By May of this year, the NRA reported that employment at eating and drinking places was still down about 12% from pre-pandemic levels, citing data from the U.S. Bureau of Labor Statistics.
Multifaceted Strategies
Operators have taken a multi-faceted approach to tackling this challenge. Some are keeping parts of their restaurant closed, even though they have been allowed to reopen, because they don’t have enough personnel. Others are offering cash signing bonuses and bonuses for referrals to recruit workers.
Papa John’s, for example, recently said it would offer $50 bonuses for referrals and up to $400 in “appreciation bonuses” to be paid throughout the year to its 18,000 corporate-store employees. The announcement followed similar offers throughout the industry, including a commitment in March by Darden Restaurants to offer $17 million in bonuses and raise its hourly pay floor.
Menu simplification is another strategy that many operators have deployed, not only to accommodate staffing shortages but also to streamline inventories and drive overall operating efficiencies.
Papa John’s, for example, recently said it would offer $50 bonuses for referrals and up to $400 in “appreciation bonuses” to be paid throughout the year to its 18,000 corporate-store employees. The announcement followed similar offers throughout the industry, including a commitment in March by Darden Restaurants to offer $17 million in bonuses and raise its hourly pay floor.
Menu simplification is another strategy that many operators have deployed, not only to accommodate staffing shortages but also to streamline inventories and drive overall operating efficiencies.
Menu simplification is another strategy that many operators have deployed, not only to accommodate staffing shortages but also to streamline inventories and drive overall operating efficiencies.
Removing Slow-Moving Menu Items
Applebee’s Neighborhood Grill + Bar trimmed its menu down to about 100 items last year, compared with about 160 before the pandemic, and plans to retain the simplified version going forward, said John Cywinksi, the company’s president, in an interview with CCN Business. The leaner menu eliminated slow-moving items as well as those that are difficult to prepare. Among the items cut were BBQ brisket tacos, sweet and savory grilled chicken, some soup dishes and a few burger varieties, he said.
Similarly, McDonald’s recently credited its menu simplification during the pandemic with driving strong sales results in the first quarter of this year. Paring down the menu streamlined operations and helped reduce drive-thru times, said Joe Erlinger, president of McDonald’s USA, in a conference call with analysts.
“Early in the pandemic, the U.S. business removed dozens of menu items,” he said. “As a result of this focus, our drive-thrus got faster, margins grew, customer satisfaction improved. Put simply: Our restaurants became easier to run and more profitable. Reducing complexity set the stage for the right investments in the core.”
“Early in the pandemic, the U.S. business removed dozens of menu items,” he said. “As a result of this focus, our drive-thrus got faster, margins grew, customer satisfaction improved. Put simply: Our restaurants became easier to run and more profitable. Reducing complexity set the stage for the right investments in the core.”
Minimizing the labor requirements in the kitchen potentially frees up restaurants to invest in personnel who can handle off-premises fulfillment rather than trying to pull servers from the floor to do this.
Off-Premises Challenges
The staffing shortfalls that operators have been facing can be particularly challenging for restaurants’ off-premises business, says Monica Challingsworth, head of global relationships at Synergy Restaurant Consultants.
“That area is all about efficiency, consistency and the food quality, but an efficient takeout area needs to be well-staffed in order to take and execute the orders,” she says.
Similarly, having well-trained kitchen staff is also important for the support of the takeout and delivery operations. That’s where partially prepared foods can help, says Challingsworth.
“That area is all about efficiency, consistency and the food quality, but an efficient takeout area needs to be well-staffed in order to take and execute the orders,” she says.
Similarly, having well-trained kitchen staff is also important for the support of the takeout and delivery operations. That’s where partially prepared foods can help, says Challingsworth.
“If you don’t have to do as much prep work, you don’t have as much pressure on the kitchen staff, and you can properly train them,” she says.
Minimizing the labor requirements in the kitchen potentially frees up restaurants to invest in personnel who can handle off-premises fulfillment rather than trying to pull servers from the floor to do this, for example, Challingsworth explains.
Minimizing the labor requirements in the kitchen potentially frees up restaurants to invest in personnel who can handle off-premises fulfillment rather than trying to pull servers from the floor to do this, for example, Challingsworth explains.
Cross-Functional Ingredients
Operators also should be looking at opportunities for cross-functional ingredients in order to help reduce their inventory costs and minimize labor.
This has proven especially effective for restaurants that have created virtual, delivery-only brands, such as the Chicken Sammy’s, The Wing Dept. and Fresh Set concepts that rolled out this year at Red Robin. Each leverages the gourmet burger chain’s existing ingredient inventory and assembly procedures, which allows Red Robin to add incremental sales without extensive additional investment.
This has proven especially effective for restaurants that have created virtual, delivery-only brands, such as the Chicken Sammy’s, The Wing Dept. and Fresh Set concepts that rolled out this year at Red Robin. Each leverages the gourmet burger chain’s existing ingredient inventory and assembly procedures, which allows Red Robin to add incremental sales without extensive additional investment.
Another strategy that allows operators to generate excitement and drive incremental sales is to offer existing ingredients as toppings on nachos or loaded French fries. Casual dining chain Twin Peaks, for example, in April rolled out four new loaded French fry dishes that make use of ingredients found elsewhere on the menu, including crispy buffalo chicken tenders, pulled pork, bacon bits and brisket chili.
Offering existing ingredients in this way not only expands the use of these inventory items, but it also creates a perfect vehicle for encouraging trial, as these dishes can often be positioned as shared sides or appetizers and are frequently offered at a lower price than the entrée dishes that feature these cross-utilized ingredients.
Offering existing ingredients in this way not only expands the use of these inventory items, but it also creates a perfect vehicle for encouraging trial, as these dishes can often be positioned as shared sides or appetizers and are frequently offered at a lower price than the entrée dishes that feature these cross-utilized ingredients.
“You have to look at every piece of your business from the guests’ perspective,”
– Monica Challingsworth, global relationships at Synergy Restaurant Consultants
“Star/Dog” Analysis
One way operators can re-engineer their menus is by conducting what is sometimes called a “star/dog” analysis, in which all menu items are place in four quadrants of a matrix based on their popularity and profitability. The most profitable and popular items—the “stars”—are the items that should be retained. Meanwhile, “dogs”—those that are low in both popularity and profitability—should be considered for removal.
Eliminating items from the permanent menu doesn’t necessarily mean they can’t still be featured, however.
Eliminating items from the permanent menu doesn’t necessarily mean they can’t still be featured, however.
Challingsworth suggests that certain items that may take a long time to prepare could be featured as specials-only on certain days when business is typically slower, to drive sales on those days and give the staff time to prepare for a higher volume of those items.
Similarly, some items could be offered as part of discounted meal bundle available only by ordering through the restaurant’s website or app, to encourage customers to order directly rather than through a third party.
Similarly, some items could be offered as part of discounted meal bundle available only by ordering through the restaurant’s website or app, to encourage customers to order directly rather than through a third party.
Overall, coping with the labor shortage requires operators to ensure that they continue to provide high levels of service to their customers, Challingsworth says. This could involve over-communicating about menu changes so that customers understand why they might no longer be able to find certain items.
“You have to look at every piece of your business from the guests’ perspective,” she says.
For more ideas about offering your guests a rewarding experience with a simplified menu in today’s challenging labor environment, visit McCain Foods.
“You have to look at every piece of your business from the guests’ perspective,” she says.
For more ideas about offering your guests a rewarding experience with a simplified menu in today’s challenging labor environment, visit McCain Foods.
