Profits Grow With Menu Focus

Some very profitable restaurants are embracing the 80/20 rule in their operations. How is that, you ask? They’re focusing on the top moneymakers, which are the 20% of items that drive 80% of the profits.

For example, at Thanksgiving this would come down to cooking your core product—turkey, stuffing, gravy.

In a recent Harvard Business Review, an article was written about a fast-food company in California, In-N-Out Burger. They offer only four types of items on the menu. Called “innovation fulcrum,” it’s having enough products to satisfy customers without creating complexity.

The method is apparently working for them, as the company has been expanding in sales at twice the normal growth rate for fast-food companies.