Running a restaurant is a balancing act between delighting customers and keeping the business profitable. Every dish on your menu contributes to your success in some way, but not all items have the same impact on your bottom line. By paying attention to the numbers, you can uncover which dishes really drive profit and make smarter decisions about your menu.

Harness the Power of Restaurant Analytics Software

One of the easiest ways to understand what’s working on your menu is with restaurant analytics software. This kind of tool collects sales data, tracks ingredient costs, and even shows customer preferences, giving you a clear picture of your menu’s performance. With these insights, you can see which dishes are popular, which generate the most revenue, and which are actually boosting your profits. Sometimes a dish that’s a customer favourite isn’t the most profitable once you factor in ingredient costs and preparation time.

Track Sales and Revenue by Item

Start by looking at sales numbers. How many units of each dish are selling, and how much revenue do they bring in? Your point-of-sale system can give you detailed reports to help with this. Comparing the popularity of items with the revenue they generate helps you spot winners and underperformers. A high-selling dish might not be making as much money as you think, while a less popular item with a strong profit margin could be your hidden gem.

Calculate Food Cost and Profit Margins

To understand profitability, you need to know your food costs. Add up the cost of ingredients, labour, and preparation for each dish. Then subtract that from the selling price to see the gross profit. Dividing that by the selling price gives you the profit margin. Focusing on items with higher margins ensures that even smaller sellers can still make a meaningful contribution to your bottom line.

Analyse Customer Preferences

Knowing what your customers like is just as important as knowing what sells. Restaurant analytics software can help you spot trends in ordering patterns, such as which sides are frequently paired with certain mains or which items encourage repeat visits. By understanding these habits, you can highlight dishes that your customers love while guiding them toward higher-margin options.

Identify Opportunities for Optimisation

With this information in hand, you can make strategic improvements to your menu. Highlight your most profitable items, create combos that increase order value, or tweak recipes to reduce costs without affecting taste. You might even decide to remove items that aren’t performing well. Regularly reviewing your data ensures your menu stays fresh, appealing, and profitable.

Make Data-Driven Menu Decisions

Making decisions based on data rather than guesswork helps your restaurant stay competitive. By tracking performance metrics, adjusting prices, and responding to customer preferences, you can refine your menu to maximise both satisfaction and profits. Over time, a data-informed approach makes running your restaurant more efficient and rewarding.

Putting Your Data to Work

Using data to identify your most profitable menu items doesn’t have to be complicated. With the right tools, like restaurant analytics software, and a focus on sales, profit margins, and customer habits, you can make informed menu choices that support your business goals.

Keep an eye on trends, make small adjustments, and your menu will not only please guests but also strengthen your bottom line.

Last modified: February 26, 2026