Articles

Ideas worth a few minutes.

Short, practical reads on the thinking behind the tools — menu strategy, costing and event profit — for hospitality operators who'd rather make decisions on numbers than hunches.

WHERE EACH £ OF THE PRICE GOES VAT cost the cut kept BUDGET misses budget

New products

Will a new product actually make you money?

A proposed price isn't a margin. Whether a new line is worth listing comes down to one test — does what's left after cost, tax and the cut clear your budget?

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WHAT IT "SOLD" VS WHAT IT ADDED switched from your own menu Reported sales net effect Actually added

Menu strategy

Menu cannibalisation: the real cost when a new dish eats an old one

A new item's sales figure is not the money it made you. Whether the switch pays comes down to one number: the contribution gap per switched sale.

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~50% ~50% Genuinely new Would've bought

Pricing

How much of a bundle's sales are actually new?

A meal deal only adds money if it captures spend that wouldn't have happened. The realistic benchmark for incrementality is about half.

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SAME 20% OFF — THE MIX DECIDES break-even adds £ loses £ Right mix Wrong mix

Pricing

How much does bundling really lift sales?

The "20–30% uplift" stats don't survive scrutiny. What actually decides a bundle is the margin mix inside it — and whether the take-up is genuinely new.

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SAFETY MARGIN Can afford to lose Usually loses 13% ≈5%

Pricing

Will a price rise cost you sales?

Far less than you fear — and a rise pays off on every sale you keep. The evidence and the break-even arithmetic.

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2.5× 0.8× Retail Food & drink

Pricing

How much does a discount really lift sales?

In a café or restaurant, far less than the big retail numbers suggest — about 0.8× the cut, and often not enough to pay.

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STARS PUZZLES DOGS PLOUGH HORSES

Menu engineering

Stars, Plough horses, Puzzles and Dogs

Every dish quietly does one of four jobs. Two professors worked out how to tell which — 40 years on, it still runs the best menus.

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£30k £36k +20% Current Proposed

Menu planning

Your next menu is a financial decision

A new menu lives or dies on the numbers behind it, not the photos on the front. The case for planning it line by line first.

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VAT 17p RECIPE COST 45p GROSS PROFIT 38p

Costing

If you don't know what a dish costs, you don't know what it earns

The price on the menu is a guess until you know the cost behind it. Costing a recipe takes minutes and changes every decision after.

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£4 £2 HALVED Full price After 20% off

Pricing

The discount that has to sell twice as much to stand still

"20% off" sounds like you need 20% more sales. You almost never do — the cut comes straight out of the slice you keep.

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REVENUE COST BREAK-EVEN

Events

An event can be packed and still lose money

A sold-out function isn't the same as a profitable one. The difference is in the costs you can't see from the door.

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