Data-Driven Menu Redesign: How to Increase Profitability and Improve the Guest Experience

The food and beverage menu is a key part of any hotel's offering. It can be a major factor in attracting and retaining guests, and it can also have a significant impact on profitability.

In recent years, there has been a growing trend towards data-driven decision making in the hospitality industry. This means using data to make informed decisions about everything from pricing to marketing.

Data-driven menu redesign is a powerful way to improve profitability and the guest experience. By analyzing data on sales, preparation time, and food costs, hotels can identify areas where the menu can be improved.

One of the most important factors to consider when redesigning a menu is the profit margin for each dish. This is the amount of money that the hotel makes on each item after taking into account the cost of ingredients, labor, and other expenses.

Another important factor to consider is the preparation time for each dish. This is the amount of time it takes to cook, prepare, and serve the dish.

Often, preparation time is an overlooked factor in menu design. However, it can have a significant impact on profitability. For example, if a dish takes a long time to prepare, but it has a low-profit margin, then the hotel may be losing money on each sale.

In my project a few years ago, I analyzed the profit margin and preparation time for every dish on the menu of a chain hotel in North Yorkshire. I found that there were a number of dishes that were taking a long time to prepare, but had low profit margins. These dishes were costing the hotel money.

I recommended that the hotel remove these dishes from the menu and replace them with dishes that were more profitable and efficient to prepare. I also recommended that the hotel adjust the prices of some of the dishes to make sure that they were making a profit on each sale.

The hotel implemented my recommendations and saw a significant increase in profitability. They also received positive feedback from guests who appreciated the shorter wait times and the more affordable prices.

You can check my project and see insights.

Click here for the full project