Restaurant prosperity depends solely on customers’ perception of value. There are many specific steps throughout the whole operation that ensure value.
Myth: A profitable menu is a product of creative art, build it and they will come.
Truth: A profitable and popular menu is more science than art.
Truth: A fanatic commitment to quality is the only way to preserve competitive advantage and long-term profits.
Truth: Most managers use shortcuts to pricing. They use either (1) a simple markup over direct food costs to establish a price, or (2) they price to the competition. Both of these simple methods allow them to avoid thinking and stress, and they can wash their hands and move on to other important jobs. Use of these simple methods for pricing is a huge mistake.
Section 2 PRODUCT/SERVICE – QUALITY – MENU SCIENCE
VALUE
QUALITY OF PRODUCT
MENU
        MENU DESIGN – PHYSICAL
        MENU CONTENT
        MENU MANAGEMENT
        MENU PROFITABILITY ANALYSIS
    MENU ITEM - RECIPE COSTS
    MENU STRATEGIES
        PORTION SIZES
        MENU BREADTH AND VARIETY
            MENU HEALTH AND NUTRITION
CHANGING THE MENU
        PRICING STRATEGY
        YOUR TARGET MARKET
            CUSTOMER PERCEPTIONS
        PRICING AND VOLUME
        PRICING DECISION CONSIDERATIONS
             COMMON SIMPLE PRICING METHODS
        PRICE INCREASES
        PSYCHOLOGICAL PRICE BARRIERS
        WINE MENU
QUALITY OF SERVICE
        THE IMPATIENCE CURVE
        REGISTER CONTROLS
        CUSTOMER COMPLAINTS
            COMPLAINT CORRECTION
        COMMON COMPLAINTS
        TEAMS
QUALITY OF ATMOSPHERE
        SOCIAL
        PHYSICAL
TOTAL QUALITY MANAGEMENT


About the Author:

Roderick Clelland, MBA, has over two decades of restaurant experience, in both operations and consulting to the industry. He formed a consulting firm with Joseph M Tierney, MBA, and Glen A Wilt, PhD to bring science and research to the fundamental restaurant decision process. While completing contracts with successful restaurant chains, he naively decided to start his first restaurant on the side, and quickly learned that great restaurant management cannot be a part-time job.

He designed, financed, built, staffed, and operated several highly profitable and popular award-winning restaurants. “My proudest achievements were the low turnover of my restaurant staff over the years, and the large number that became wealthy in their own operations. When you select great people and insure they have excellent knowledge and skills, you have happy staff and happy customers”

Mr. Clelland continues to consult to the industry, and is still constantly dismayed by observable poor restaurant operating practices. He currently lives in San Francisco.