Latest / Restaurant Business with Fexingo: Food Service, Hospitality, and Independent Operators / How Restaurant Menus Are Getting Shorter and More Profitable
Transcript
- Lucas: So I was reading through the latest numbers on independent restaurant performance, and there's this one data point that keeps jumping out: the average number of items on a menu has dropped by about 18 percent since 2019. And it's not just the fast-casual chains doing it — it's your neighborhood bistro, your family-run Italian place. Luna: Wait, really? I feel like menus were already pretty tight in a lot of places. Are we talking about the big chains or actual independents? Lucas: Both, but independents are leading the charge. And the reason is simple: every extra item on a menu costs money. More ingredients to stock, more prep time, more training for the line cooks, more potential waste. In a world where food costs are still hovering around 30 percent of revenue and labor is squeezing everyone, operators are realizing that a shorter menu is one of the few levers they can pull that hits both at once. Luna: It's funny you mention that, because we've talked a lot on this show about how to squeeze more revenue out of the same four walls. But this feels like the opposite — cutting options to keep the ones that actually make money. That's a different kind of discipline. Lucas: Exactly. And you know, that discipline is something our listeners probably appreciate — and if these conversations have helped you think about your own business in a new way, we'd love it if you considered supporting the show. It's what keeps us ad-free and independent. You can do that at buy me a coffee dot com slash fexingo. No pressure, just a nice way to keep the conversation going. Luna: Yeah, we really do appreciate it. And honestly, it's listeners like you who keep us digging into these topics that actually matter. Lucas: So back to the menu shrink. There's a really interesting case study out of Portland — a bistro called Juniper, which had been running a pretty standard 34-item menu. They decided to cut it down to 19 items at the start of the year, and the owner shared the before and after numbers with me. Luna: Oh nice, I love a concrete example. What did they see? Lucas: Their food cost went from 31 percent down to 27 percent. That's a massive swing for a restaurant. And their table turns went up 12 percent, because the kitchen could push plates out faster. They also saw a 15 percent reduction in prep labor, because they weren't chopping onions for four different dishes that each required a different cut. Luna: Those are the kinds of numbers that make an owner sit up straight. But I have to ask — didn't the regulars complain? You cut a third of the menu, people are bound to miss something. Lucas: They did, at first. The owner said there was a week of customers asking for the old pork chop that wasn't on the menu anymore. But here's the thing: after about a month, average per-head spend actually went up. People weren't ordering more items, they were ordering the items that were left — and those happened to be the highest-margin dishes. Luna: So it's not just about cutting costs, it's about curating the choices so that the ones that remain are the ones you're actually good at making money on. That's menu engineering at its finest. Lucas: Right. And there's a psychological angle too. You've got the paradox of choice — when you give people too many options, they get anxious and often just pick the safe, boring thing. A tighter menu gives them confidence, and it makes them more willing to try something that might be a better margin dish. Luna: I've read about that in a retail context, but it's interesting to see it play out on a menu. So, what's the sweet spot? Is there a magic number of items per menu category? Lucas: There's no universal number, but a lot of menu engineers point to around five to seven items per category. Enough to give a sense of variety, but not so many that the kitchen starts to lose focus. At Juniper, they went from twelve appetizers down to six, and from eight mains down to five. They kept two of the three desserts, because dessert is high margin and low prep. Luna: What about the operational side? I imagine a shorter menu also changes how you buy ingredients. You can probably negotiate better prices when you're buying the same five proteins in larger volume. Lucas: Absolutely. Juniper renegotiated with their produce supplier because they were now ordering only three types of greens instead of six, and they got a 6 percent price break. Plus, they stopped having to throw away half a case of arugula that only one salad used. Waste dropped by 20 percent, which is another direct hit to the bottom line. Luna: That's a great point — waste is such a silent killer in restaurants. And I imagine a shorter menu also helps with staff training. If you have a new line cook, they only have to learn 19 dishes instead of 34. Lucas: Exactly. The owner told me they cut their onboarding time in half, and they could cross-train people more easily because everyone was working from the same smaller set of recipes. It also made it easier to keep quality consistent, which is huge for a place that wants to build a loyal following. Luna: So, is this a trend that's going to stick, or is it just a reaction to the current cost environment? I mean, menus have been expanding and contracting for decades, right? Lucas: I think this time it's different. We're seeing it not just in independents but in big chains like Cheesecake Factory, who you'd think would never cut anything — they actually trimmed their menu by about 20 items last year. And the numbers are pretty clear that shorter menus are correlated with better margins, especially when food costs are volatile. Luna: That's a strong signal. But what about the creative side? I mean, chefs love to experiment, and a fixed menu might feel like a straitjacket. Lucas: That's the trade-off. Some chefs are solving it by keeping a few rotating specials that change daily, so they still get the creative outlet without committing to a whole separate menu section. Juniper does that — they have one fish special every Friday, and it's become a bit of a draw. But it's a small, contained experiment, not a whole additional page of options. Luna: So the message for operators is: don't just cut, curate. And if you're thinking about doing this, what's the first step? Lucas: Start with your sales data. Look at what's actually selling and what's just taking up space. If an item accounts for less than 5 percent of sales but uses three different ingredients that nothing else uses, that's a prime candidate for the chopping block. And then look at your margins — sometimes a bestseller is actually a loss leader because it's so labor-intensive. Luna: That's a good rule of thumb. And I guess the other side is — don't be afraid to tell your regulars why you're doing it. If you frame it as 'we want to make sure every dish is excellent,' people tend to get on board. Lucas: Yeah, communication is key. Juniper put a little note on the menu explaining that they were focusing on doing fewer things better, and they even posted about it on Instagram. That transparency actually helped with the initial backlash. Luna: So, in the end, a shorter menu isn't just about cutting costs — it's about defining what your restaurant is. And that's a bold move in a business that's often about saying yes to everything. Lucas: I think we're going to see more of this as operators realize that the old model of 'the more, the merrier' just doesn't hold up in 2026. The winners are going to be the ones who can be nimble with their menus, who can adapt to what their customers actually want while keeping their costs in check. Luna: And for diners, it means we're getting a better experience — a menu that's been thought through, not just assembled. I'm all for that. Lucas: So next time you're handed a menu with fifty items, maybe ask yourself — are they really doing all of these well, or are they just afraid to cut? That question might tell you more about the restaurant than the food itself. Luna: That's a great way to think about it. Thanks for digging into this, Lucas. And to our listeners, if you're running a restaurant, maybe take a hard look at your own menu and see where you can trim. Lucas: Yeah, and if you do, we'd love to hear about it. Drop us a note — you can find us on the Fexingo site. Until next time, keep making magic in the kitchen.