I’m pretty sure a lot of people are about to get pretty mad.
Three restaurants have finally bowed out, announcing imminent plans to massively shrink their menus.
It stinks, but it’s a necessity right now. And here’s why:
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The decision to remove items from the menu of course comes down to a combination of factors, and it can often be a gut-wrenching decision.
After all, everything that’s on the menu is there for a reason.
There are people for whom it’s the “only” dish they love at this restaurant.
Pick the wrong stuff to remove, and you can push customers straight into the arms of competitors.
These are tough decisions to make, and I’m glad I don’t have to be the one to do it!
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Every restaurant chain has its own specific process, but in general it all boils down to these questions:
– Is the dish popular? Do a lot of people get it?
– Is it difficult and/or expensive to make?
– Does it require unique ingredients that put additional pressure on limited space for inventory?
– Is it core to the restaurant’s brand?
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One of the restaurants we’ll be dicussing is Outback Steakhouse, so I wanted to run you through the process using their Bloomin’ Onion as an example.
– Is the dish popular? Uh, yes.
– Is it difficult or expensive to make? Definitely not. Part of the reason Outback has been able to keep prices on it so low is that it’s just not a huge strain.
– Does it require unique ingredients? Not really – the spice blend, I guess, but that doesn’t take a whole lot of space. And that’s become less unique because…
– Is it core to the restaurant’s brand? Yes. So much so that Outback keeps launching more “Bloomin’ ” stuff – shrimp, chicken, and more.
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Of course, the Bloomin’ Onion is an easy example. Getting rid of it would be like McDonald’s getting rid of the Big Mac! It’s unthinkable.
But lots of dishes only check one or two boxes. That’s where things get more complicated.
And these three restaurants have decided that it’s time to cut their losses on some menu items:
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As I mentioned, Outback has announced substantial menu reductions this year.
In announcing the decision, they highlighted many of the same factors I did – items that are complicated or require special inventory and aren’t core to the brand.
The goal here is efficiency – and they’re cutting deep, with up to 20% of dishes going the way of the dinosaur.
No word yet on which specific dishes are going away, so hold your breath…
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Starbucks abruptly announced that, after growing their menu for years, they’re planning to trim it down by a whopping 30%.
That’s almost one-third of items gone by September!
The thinking here is mostly about improving efficiency for baristas so they can turn around orders a lot faster.
The first set of losses was a real blow:
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These are all gone:
– Iced matcha lemonade
– Honey almond milk flat white
– Royal English breakfast latte
– White hot chocolate
– A bunch of frappuccinos (white chocolate mocha, java chip, chai creme, caramel ribbon crunch creme, and more)
…and there’s plenty more to come, unfortunately.
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Papa John’s has already cut its menu by 10 items this year and plans to remove more.
(But it’s also adding new menu items – notably a stuffed-crust pizza to respond to Domino’s, and bringing back the Shaq-a-Roni pizza – so, lots going on here.)
Things are rarely just “one direction” – even when the net impact is to shrink the menu, everyone still has to keep bringing in new stuff.
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Last year, Chili’s made the painful decision to shrink its menu by about 25% – a massive reduction that got rid of plenty of longtime fan favorites.
Since then, and because Chili’s managed the process so well, Chili’s sales have skyrocketed. Their restaurant sales spiked 31% year-over-year by the end of 2024, and traffic has surged.
It’s no wonder everyone else is trying to do the same thing – in an industry where margins are always thin, the opportunity to grow sales by so much while also improving efficiency is…somethign no one wants to pass up.
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Starbucks, Chili’s, Outback, and Papa John’s really have nothing in common aside from the fact that they’re chains.
Chili’s and Outback are sit-down restaurants…Starbucks is mostly carryout, and of course Papa John’s is mostly delivery!
The only thing they have in common is a push to simplify their menus to improve the guest experience, their own efficiency, and ultimately – sales.
Who should join them?
Let us know in the comments!
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Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
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