ABC Analysis for Restaurant Menus: Track Item Popularity & Optimize Stock
ABC Analysis helps you categorize menu items by revenue contribution. 'A' items are your top 20% dishes generating 70% of sales—think Butter Chicken or Biryani at most Indian restaurants. 'B' items contribute 20% of revenue, while 'C' items make up just 10% despite taking up stock space and kitchen time.
How to Apply ABC Analysis
Track each dish's sales velocity over 30 days. Calculate revenue per item, then rank them. Focus your inventory budget on 'A' items—never let Paneer or your signature gravy base run out. For 'C' items like that experimental fusion dish selling twice a week, consider removing it or making it a weekend special to reduce waste.
Quick Wins
- •Move 'A' items to prime menu positions—top-right on printed menus or first on digital menus
- •Negotiate bulk discounts with suppliers for your high-velocity ingredients
- •Review 'C' items quarterly—if something hasn't picked up in 3 months, replace it
Digital menus like DineCard (dinecard.in) make menu optimization easier—update pricing and item positions instantly based on your ABC analysis without reprinting costs.
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