QSRs Are Dropping Menu Items

ALEXANDRIA, Va.—A number of major U.S. fast-food chains are scaling back their menu offerings this year, reports CNBC.

To drive traffic, foodservice operators often turn to limited time offers (LTOs). While some popular LTOs may end up as a fulltime offering, too many can create a super-sized menu that overwhelms customers, slows down service and leads to longer, slower drive-thru lines.

“A guest gets line-resistance when someone is behind them, and they have to make a quick decision. In the drive-thru, it is the same thing where, not that they are honking, but they are honking in your head,” said Gregg Rapp, a menu engineering consultant. He adds that the general rule of thumb is to have seven or fewer menu items under each category.

When deciding what items need to go “bye-bye”, menu engineers start by getting rid of the offerings that are unpopular and less profitable. Of course, Rapp said that there will always be someone who complains about the changes.

“What we typically do is keep [the deleted item] in the kitchen for 60 days or so, so we’ll have it available,” Rapp said. “But then the next time the person comes in, they’ll have forgotten about it.”

One of the many chains scaling back and redoing their menu is Taco Bell. Along with updated combo options, Taco Bell has deleted nine items, including the Cool Ranch and Fiery Doritos Locos Tacos, the Beef Mini Quesadilla and chips and salsa.

In the spring, McDonald’s changed its menus to speed up drive-thru times and focus more on its core items, like the Quarter Pounder and the Big Mac, which see strong U.S. sales. But the chain’s late-night menu, which is available from midnight to 5 a.m. at participating locations, no longer includes the Filet-O-Fish or buttermilk chicken tenders. The burger chain also nixed its line of premium burgers and allowed franchisees to scale back their all-day breakfast offerings.

In addition to reducing the menu size, McDonald’s has also invested in technology and diagnostic tools to speed up the drive-thru lane. In June, U.S. drive-thru times dropped by 15 seconds.

As a test, Jack in the Box cut low-volume menu items and redundant SKUs at roughly 180 company and franchise stores this year, a move that help speed up service times but did not hurt sales. “We’ve been our own worst enemy when it comes to speed of service, as the breadth of our ever-changing menu has added complexity and prep times in our kitchen,” said Leonard Comma, CEO.

In May, El Pollo Loco announced that it had reduced its menu by 20% across all chain locations, discontinuing items like the Mexican Cobb Salad, Chicken Fajita Burrito and Chicken Fajita Quesadilla. This allowed the chain to be more efficient in the kitchen and focus more on great food and service, the company reported. Like Jack in the Box, El Pollo Loco executives said that the company did not see transactions fall as a result of menu editing.

Activity based costing Advertising Commissaries-packaged sandwiches Day part Metrics Consumers Product availability Inventory management Merchandising Receiving products New product introduction Home meal replacement Inventory management Wholesale distribution Menu segments Sustainability QSR Supplies