Using Customer Data to Make Smarter Menu Decisions

Understanding what your customers want is critical for restaurant success. By analyzing customer data from online orders, reservations, and feedback, restaurants can make informed decisions that not only boost sales but also reduce waste, improve guest satisfaction, and enhance the overall dining experience. Data-driven insights allow you to refine your menu offerings, make strategic pricing decisions, and create personalized dining experiences that customers love. In a competitive restaurant landscape, leveraging customer data isn’t just beneficial; it’s essential.

1. Track Popular Items

Your restaurant’s sales data is one of the most valuable assets you have. With the right tools in place—like a robust Point of Sale (POS) system, integrated website analytics, and online ordering platforms—you can track which dishes are flying off the menu and which are left behind. By focusing on your top-performing dishes, you can craft promotions, bundle deals, and seasonal specials that highlight these favorites.

What to do with this data:

• Promotions & Specials: Use your popular items as the star of your promotions. Highlight them in your seasonal menus or use them as part of a "meal deal" to attract budget-conscious customers.
• Consistent Quality: Ensure that the dishes people love are always available and prepared to the same high standard. This consistency will keep customers coming back.
• Combo Meals: Consider pairing top-sellers with complementary dishes. For example, if your steak is a hit, create a combo with a popular side or appetizer to increase average ticket size and drive more sales.

The power of website analytics in identifying top-sellers is highlighted in RocketPages’ insights on ROI. By tracking visitor behavior on your menu page, you can see which items draw the most attention. Similarly, Upserve’s guide on using data to optimize your menu emphasizes how this data allows restaurants to focus their efforts on what works best, improving overall profitability.

2. Identify Underperforming Items

Just as it’s important to track what works, it’s equally crucial to pay attention to what’s not working. Customer data can reveal underperforming menu items, whether it’s low sales, negative reviews, or dishes that don’t match current customer preferences. This kind of insight allows you to make strategic decisions to optimize your menu and reduce food waste.

What to do with this data:

• Remove or Tweak Low Performers: If a dish consistently underperforms, it may be time to reconsider its place on the menu. Alternatively, adjust the recipe or presentation to breathe new life into it.
• Pricing Adjustments: Low-performing dishes could benefit from a price adjustment. Consider lowering prices to encourage orders, or increase prices for more premium items to boost overall revenue.
• Seasonal Testing: Some items may not be well-suited to your regular menu but could perform well if offered seasonally. Test these dishes as limited-time offerings before making them permanent.

Understanding customer behavior on your website and through your ordering platform can directly guide these decisions. The guide on cutting out third-party intermediaries shows how reducing reliance on third-party platforms can give you more control over your menu and pricing strategy.

3. Leverage Customer Feedback

While hard data like sales numbers and web traffic are critical, qualitative feedback from customers is equally valuable. Whether it’s through online reviews, direct feedback, surveys, or social media comments, customer insights provide a deeper understanding of their preferences, what they love, and where you can improve. Feedback can help you tweak your menu, improve service, and build stronger relationships with your guests.

What to do with this data:

• Understand Preferences: Feedback reveals what your diners like about your food, the ambiance, portion sizes, and even the presentation. Pay attention to repeated themes in comments to refine your offerings.
• Improve New Dishes: Use feedback to inform the development of new menu items. If customers loved a limited-time dish or a special, consider adding it to your regular menu.
• Engage & Build Loyalty: Respond to feedback promptly. Addressing complaints in a professional manner shows your commitment to customer service and can turn a dissatisfied customer into a loyal one.

Reviews also impact your restaurant’s visibility and SEO. As noted in guide to reviews and SEO, online reviews play a major role in driving traffic to your website and improving local search rankings. Positive reviews can make your restaurant stand out, while negative reviews provide the opportunity to make improvements and show your willingness to adapt.

4. Personalize Menu Recommendations

One of the most effective ways to increase both customer satisfaction and sales is through personalized recommendations. By analyzing customer order history, restaurants can offer tailored suggestions based on individual preferences and past orders. This creates a more engaging and tailored dining experience, encouraging repeat visits and upselling.

What to do with this data:

• Order History: Leverage order history to suggest dishes that are similar to previous orders, or offer popular add-ons (e.g., pairing a drink with a main course).
• Email & Website Engagement: For returning customers, use targeted emails or website pop-ups to promote dishes they’ve ordered before or showcase trending items that may interest them.
• Encourage Upsells: Personalized recommendations can also suggest add-ons—such as a dessert, side dish, or drink—that complement the main order. This not only improves customer satisfaction but also increases average revenue per order.

As highlighted in restaurant marketing funnel, personalization goes beyond the menu. Personalized recommendations on your website can guide returning customers toward their favorites or new offerings based on their past behavior. This creates a seamless experience that drives both customer retention and sales growth.

5. Optimize Menu for Profitability

Finally, leveraging data isn’t just about customer preferences—it’s also about aligning those preferences with your restaurant’s profitability goals. Some dishes may be popular but not profitable, while others may have a higher profit margin but lower sales volume. Balancing these factors is key to optimizing your menu for both customer satisfaction and business success.

What to do with this data:

• Feature High-Margin Dishes: Promote dishes that offer the best profit margins. These may be simple yet highly profitable, like well-priced appetizers or unique cocktails.
• Portion Control: Adjust portion sizes to reduce waste while maintaining customer satisfaction. Small changes, such as reducing over-portioning or offering “half-size” options, can save costs without sacrificing quality.
• Test & Evaluate: Introduce limited-time items or seasonal offerings and test their demand. If they perform well, you can permanently add them to your menu.

The key here is using data to strike a balance between what customers want and what drives profitability. As mentioned in ultimate restaurant website checklist, a well-designed website with clear menu offerings will make it easier to guide customers toward higher-margin items.

Conclusion

Using customer data to inform your menu decisions transforms menu planning from guesswork into a strategic, profitable process. By tracking popular items, identifying underperforming dishes, leveraging feedback, personalizing recommendations, and optimizing for profitability, restaurants can create a menu that resonates with customers while driving revenue growth. The combination of hard data and customer insights will help restaurants stay competitive, improve customer satisfaction, and reduce waste—all of which ultimately boost profitability and enhance long-term success.