AI & the Menu Engineer: Brave New World

Menu Engineering is changing by the minute. For decades, strategists toggled between data sheets to build models upon which to turn hypotheses into results. New players are using AI to connect the dots, project the impact and weigh the risks. I've repeatedly broken out a matrix which took years to fine-tune as a consultant. I organized menu item data including Mix, Price, Cost, Margin, Satisfaction, Reach and Unique SKUs which rolled up to overall financials. Rather than a sizable Excel sheet, new AI players are building dashboards to farm, organize and synthesize this data. How can they built it better>

Items should be allocated exponents for their menu positioning, promotions and feature status based on historical sales. Organizational objectives — like reduce menu by 10% or decrease FC by 10 basis points — can be set as fixed points for comparison against changes. Changes are input; deletion mix gets reallocated; and menu highlights exponentially calculate to project impact to financials and compare to goal. Any negative effect to top-line sales generates Traffic and/or Add-on/Attachment hurdles to compensate. The matrix should allow for tracking multiple scenarios to weigh options towards the goal.

Strategists are still critical. Analysts should set goals, define thresholds, establish brand standards and calibrate mix changes. Guardrails include variety (TURF), pricing (barbells, price thresholds) and operations (station balance). This structure removes emotional barriers to change (no sacred cows!) to instead focus the analysts on the business. A smart restaurateur will leverage the real time benefit of on-line sales — OLO, app, DSPs, Kiosks, Dine-in Menu Boards and/or Drive-through Menu Boards — to test drive digital menus for immediate impact. This trade-off would pose least risk on DSPs since DSPs own the customer.

All this modernizes the menu engineer. I've spent a career doing this work and recognize that change is inevitable. What's my role now in the brave new world? There will always be humanity in hospitality. Setting the objectives to manage a brand is the difference-maker. I've engaged with countless guests, worked with countless operators and tasted countless menu items. The next phase of our industry will connect the data so that the experience improves. Fresher food. Balanced operations. Improved variety. Site-specific menus.

Imagine integrating your menu tool with your BOH inventory to create features and/or pricing changes to deplete high cost product nearing the end of shelf life. Imagine creating custom menu recommendations for customers signed into the app, OLO or DSPs based on weather, time of year, Amazon purchases, event attendance and on-line usage. Imagine real-time value tactics triggering based on market competition identified across digital and social.

What gets built is only as good as the creativity of the builders.