Benefits of AI-Powered Menu Engineering

1. Data-Driven Pricing Optimisation

AI tools analyse sales data, competitor pricing, and customer willingness to pay, ensuring that restaurants set optimal menu prices. Dynamic pricing adjustments can be implemented to maximise profits during peak hours or promotional periods.

“Pricing is no longer a guessing game—AI ensures each menu item is priced to maximise revenue while maintaining customer value,” explains Chef Shajahan M Abdul.

2. Identifying Best-Selling & Underperforming Items

AI categorises menu items into four key groups:

• Stars: High profit, high popularity
• Plough Horses: Low profit, high popularity
• Puzzles: High profit, low popularity
• Dogs: Low profit, low popularity

By analysing these metrics, restaurant consultants recommend repositioning high-margin dishes and removing underperforming items.

3. Personalised Menu Recommendations

AI-powered recommendation engines utilise machine learning to analyse customer preferences, dietary choices, and past purchasing behaviour, enabling restaurants to suggest personalised menu items.

Restro Consultants Pvt Ltd (RCPL) highlights that personalised recommendations can increase average order value (AOV) by up to 20%.

4. Reducing Food Waste Through Predictive Analysis

By analysing historical sales data and seasonality, AI helps restaurants optimise inventory purchases, prevent overstocking, and reduce food waste.

“AI can forecast demand with impressive accuracy, ensuring that restaurants stock only what they need,” notes Chef Abdul.

5. Enhancing Menu Layout & Design

AI analyses customer behaviour to determine which menu items should be highlighted, placed in eye-catching locations, or grouped to increase sales.

Restaurant consultants emphasize that strategic menu placement can increase sales of high-margin items by up to 30%.

6. Seasonal & Trend-Based Adjustments

AI tracks industry trends and customer preferences, allowing restaurants to introduce seasonal dishes and trending ingredients that align with current demand.

“A data-driven approach helps restaurants stay ahead of competitors by offering trendy, in-demand dishes,” explains Chef Shajahan M Abdul.

How AI is Reshaping Menu Engineering

1. AI-Powered Heat Maps

AI-based heat maps analyse customer eye movement on digital and physical menus, ensuring that the most profitable items are strategically placed for higher conversions.

2. Smart Combo & Upsell Suggestions

AI-driven software suggests profitable combo deals and upsells based on customer preferences and purchase behaviour.

3. AI Chatbots for Menu Assistance

AI chatbots can recommend dishes in real time, assisting customers in selecting meals that match their dietary needs and taste preferences.

4. Integration with POS & Customer Feedback

By integrating AI-powered menu engineering with point-of-sale (POS) systems, restaurants gain valuable insights into which dishes are selling well and which require adjustments.

Implementing AI-Driven Menu Engineering in Your Restaurant

Step 1: Collect and Analyse Data

Use AI tools to analyse sales reports, customer preferences, and seasonal trends to identify areas for improvement.

Step 2: Optimise Pricing & Placement

Adjust menu pricing, item placement, and design based on AI-generated recommendations.

Step 3: Implement AI-Driven Personalisation

Utilise AI to provide personalised menu suggestions tailored to each customer’s ordering history and behaviour.

Step 4: Monitor & Adapt

Continuously track performance and make real-time menu adjustments to maximise profitability.

Conclusion: The Future of AI-Powered Menu Engineering

AI is revolutionising how restaurants optimise their menus, from dynamic pricing to personalised recommendations and waste reduction. By embracing AI-driven menu engineering, restaurants can significantly increase their revenue while enhancing customer satisfaction.

“AI is not here to replace chefs—it’s here to empower them with better insights and smarter strategies,” Chef Shajahan M Abdul concludes.

For expert guidance on implementing AI-powered menu engineering, consult Restro Consultants Pvt Ltd (RCPL). Their team of restaurant consultants can help you unlock your restaurant’s full potential with the latest AI-driven strategies. Contact RCPL today to transform your menu and maximise your profits!