​How Menu Creep Could Be Costing Your Fish and Chip Shop

Running a successful fish and chip shop is as much about efficiency as it is about great food. However, one challenge that often creeps up unnoticed is "menu creep" – the gradual expansion of menu items over time. While offering variety can seem like a way to attract more customers, it often leads to inefficiencies that eat into profits. Imagine spending an extra £1,000 a year to store items customers rarely order. Here, we delve into the hidden costs of menu creep and offer strategies to streamline your operations and improve productivity.

What is Menu Creep?

Menu creep occurs when new items are added to your menu incrementally over time without removing underperforming or low-margin dishes. It's tempting to cater to every customer request or chase every new food trend, but this often results in a bloated menu that creates operational inefficiencies, increases costs, and reduces focus on your core offerings.

The Hidden Costs of Menu Creep

1 - Increased Inventory Costs

Every new menu item requires additional ingredients, which take up storage space and walk-in freezer space. Don't get me wrong – trying a new frozen chicken product can be a good idea, but adding several chicken items, squid, and other niche products throughout the year without a clear marketing plan will drain cash flow. For instance, the cost of storing a box of chicken breaded bites for 12 weeks is approximately £4.98, assuming uniform energy usage and space efficiency. Over time, these costs add up, especially considering that an 8 ft x 8 ft walk-in freezer uses around 8,000 kWh per year, costing upwards of £1,000 annually in electricity. The more items you add, the greater the strain on your storage capacity and energy usage.

2 - Labour Inefficiencies

A larger menu requires more time to prepare, increasing the workload on your staff. Training new employees to handle various menu combinations takes longer, which means higher labour costs and a greater risk of errors.

3 - Reduced Service Speed

Complexity on the menu slows down service, especially during peak times. A busy kitchen with multiple orders of varying complexity is harder to manage, leading to longer wait times and lower customer satisfaction.

4 - Higher Waste Levels

Expanding your menu means stocking ingredients that may not be used frequently. Items with shorter shelf lives can lead to higher waste, further eating into your margins. For instance, niche ingredients used in only one or two menu items are more likely to expire before being fully utilised.

Why Simplifying Your Menu Makes Sense

Many successful fast-food giants, such as McDonald's and Chick-fil-A, have recognised the benefits of simplifying their menus. McDonald's, for instance, trimmed its menu during the pandemic to streamline operations, improving efficiency and reducing costs. While fish and chip shops may not have the scale to implement advanced automation like Chick-fil-A's robotic lemon squeezers, the principle remains: less is more.

Cross-Utilise Ingredients

Optimise the value of each ingredient by incorporating it into multiple items across your menu. For example, excess fish on site can be used to make homemade breaded fishcakes or Yorkshire fishcakes. This allows you to control portion sizes and weights for your fish and also enables you to generate extra profit from stock that might otherwise go to waste or portion loss (over serving). Other examples include using leftover chips to create bubble and squeak patties or repurposing leftover batter for fritters. By employing this strategy, you can significantly reduce waste and reduce the need to purchase additional ingredients.

Benefits of a Streamlined Menu

• Lower Energy Costs: With fewer ingredients to store, you can optimise freezer space and reduce energy consumption, saving hundreds of pounds annually.

• Improved Productivity: Staff can focus on perfecting core items rather than juggling a wide range of dishes, leading to faster service and higher quality.

• Reduced Labour Costs: A smaller menu requires less prep time and fewer staff hours, which is crucial as wages and National Insurance contributions continue to rise. For example, saving 20 workable hours a week at £12.21 an hour equates to approximately £13,547 annually.

• Enhanced Customer Experience: A focused menu ensures that your best menu items shine, reinforcing your shop's reputation for quality and consistency.

How to Avoid Menu Creep

1 - Audit Your Menu Regularly

Analyse sales data to identify underperforming items. If a dish isn't selling well or has low margins, consider removing it. Tools like point-of-sale systems or menu analytics software can simplify this process. Have a time limit in mind for products that sit in a freezer or ambient shelf for weeks or months; how long are you comfortable with your cash being tied up?

2 - Focus on Core Offerings

Your best-sellers, such as classic fish and chips, should remain the stars of your menu. Customers come to a fish and chip shop for the classics and a few choices, not an endless array of options and variations. However, there is a time and a place for having one item on the menu that is more expensive, even if you don't sell a lot to make your regular offering look better value.

3 - Limit Specials and Variations

Instead of adding permanent menu items, use limited-time specials to test new dishes. This creates excitement without committing to long-term complexity.

4 - Cross-Utilise Ingredients

Design your menu around ingredients that can be used in multiple dishes. If you have a product on your menu that includes onion, why buy frozen onion rings when you can portion fresh ones from real onion?

5 - Communicate Changes to Customers

Be transparent about why you're simplifying your menu. Frame it as a commitment to better quality and faster service, which customers will likely appreciate.

The Bigger Picture: Rising Labour Costs in the UK

Labour costs in the UK are on the rise, with minimum wage increases and higher employer contributions to National Insurance. Reducing your menu's complexity can help offset these rising costs by reducing the total staff hours required to operate your shop. A streamlined menu also allows for easier training, meaning your team can get up to speed faster and work more efficiently.

Conclusion: Less is More

While it's tempting to expand your menu to cater to every taste, a bloated menu often does more harm than good. By simplifying your offerings, you can reduce costs, improve efficiency, and deliver a better experience for your customers. Remember, customers value consistency. A shop known for its excellent fish and chips won't lose customers by removing niche items – they'll likely gain loyal fans who appreciate your dedication to quality. Take a page from the fast-food giants: focus on doing a few things exceptionally well. In the long run, a leaner menu could be the key to greater profitability and sustainability for your fish and chip shop.