Local restaurants slim down their menus to offset rising costs: Andrew Coppolino

There's a certain flow to restaurant businesses that cycles between busier and quieter periods. A rhythm, which has been upset by the pandemic, could be further disrupted by an economy that will likely continue to falter in 2023.

Restaurants respond to uncertainties ⁠— rarely seen supply-line interruptions, staff shortages and skyrocketing inflation ⁠— by adjusting their operations, including revamping menus or removing dishes to save labour and costs.

Kitchener's Nostra Cucina has dropped a couple of pasta dishes from its menu because of supply issues. Meanwhile, Caesar salad is also currently off the menu because of cost: A case of Romaine lettuce that was once $50 is now more than $100.

"We're trying to make a product that is the exact same every time, but it's not been easy to do," said co-owner Sian Burns.

In Waterloo, Gol's Noodles downsized its menu too, said owner Yuming Gao.

"We made some adjustments to our BBQ menu due to the unstable ingredients supply. We reserved the dishes for which we have stable supplies."

Slimming down menus a good strategy

While the current pandemic business climate is unique, menu rationalization has always been a good strategy for restaurateurs. That's according to Vince Sgabellone, food service industry analyst at NPD Canada, a market research company.

"It's always the case that the majority of sales and revenue are made from a minority of menu items. Everything else is secondary, and when you're really busy and have a regular customer flow, those secondary items are fine."

However, in slower times, those items can drag down revenues, Sgabellone said.

Trying new strategies to help keep costs down

Crafty Ramen's Jared Ferrall said they've simplified their menus to increase speed and consistency.

"We also removed the meat lover's ramen because it was getting too expensive and wasn't a good representation of who we are," Ferrall said.

A smaller menu isn't necessarily a bad thing: One theory holds that you select dishes you can execute really well and excel at them.

"A restaurant with dozens of menu items is not likely to be successful with all of them," said Sgabellone, adding that a menu that has "a bit of everything" needs tightening, which can save money.

"The consumer has become more discerning, too. There's a certain expectation, especially among younger consumers who are a little less brand-loyal and like to shop around for the latest and greatest. A customer who wants Indian food tonight will go [to] the best Indian restaurant they can find," he said.

A new way of thinking

Restaurants streamlining their operations became a necessity during pandemic lockdowns, including pivoting to a takeout model when dining rooms had to be shuttered.

The first items to vanish from menus were the dishes that didn't travel well. The process helped forge a new way of thinking about dine-in and takeout, and restaurants have gotten quite good at quick shifts in their operations.

Vita Saelzer, head chef at Miijidaa in Guelph, said menu changes are more difficult with a dearth of supplies, rising costs and staff shortages. Menu cutting will come only after pursuing other strategies.

"I'm reusing prep items across the board and finding ingredients that are less expensive than I'd usually be inclined to use," Saelzer said.

Stephanie Soulis of Little Mushroom Catering in Cambridge has a similar philosophy.

"For the most part, we're trying to streamline our menus. We have lots of kitchens that we serve, so making sure we have the same menu items across the board reduces labour costs and ingredient costs," she said.

Blistered tomatoes and olives for a flatbread prepped at one location are also in a pasta dish at another, for instance.

At Sari-Sari Filipino Cuisine, a restaurant that draws heavily on expensive meat for its menu (and where they do butchery in-house), runs specials based on availability of ingredients.

But a sharing strategy ⁠— one prep for two applications ⁠— has evolved in these more difficult times, said Ylynne Rosales Enriquez of Sari-Sari.

"It is based on our schedule. If we are very busy on a catering order, we will base the feature dishes off of what is already being made that day."

Ready for whatever's next

Fat Sparrow restaurateur Nick Benninger said he isn't needing to slice down his menu ⁠— yet.

"We already have shortish menus and are still knee-deep in our busy season. When we hit our slower season, we may cut down menus," he said.

Is there a glimmer of light in a gloomy economy? Josh Perovic at Hemlock Barn in St. Jacobs is hopeful. 

"The shortages are bad, but since we make most [of] our of food in-house, it's not terrible. I'm cautiously optimistic it will settle down eventually. Since COVID-19, I'm always ready to pivot," he said.

Soulis at Little Mushroom expresses a similar approach.

"If we do go into a recession, I can't imagine it being worse than being shut down by the government several times. Knowing what we were able to do during COVID-19, I think we'll be able to weather it."