Introduction
Did you know, diners invest an average of 109 seconds on the one thing that can define their entire evening: a restaurant’s menu? In less than two minutes, customers usually make the choice that will significantly impact the course of their meal.
Thank you for reading this post, don't forget to subscribe!So, the top restaurateurs understand the importance of their menu. It is a vital tool for interacting with customers, ensuring satisfaction and establishing the mood of their stay, and offering them not just the tastiest but also the most profitable items.
A well-designed menu can increase your restaurant’s earnings by 10–15% without affecting the quality of the cuisine, the costs, or the level of service. However, 60% of restaurants never consider menu engineering, leaving thousands in easy earnings on the table.
So, restaurant operators need to build a menu that encourages consumers to order the most profitable meals in the limited time they will spend on the menu.
But how?
That’s exactly what you’ll learn in this blog: how to create the ideal menu that will increase your restaurant’s profitability and sales while also making your customers pleased.
Also Read: How do Fast Food Restaurants Ensures Consistent Food Quality
What is Restaurant Menu Planning?
Restaurant menu planning is the process of putting together a list of items that a restaurant serves to its clients. It involves putting together all of the components that comprise a menu, such as food items, descriptions, prices, and images or illustrations.
The purpose of menu planning is to provide guests with a variety of selections that satisfy their cravings while also ensuring the restaurant’s profitability.
Also Read: Key Metrics Every Restaurant Owner Should be Tracking
Food Menu Ideas for Restaurants in 2025 – The Comprehensive Guide!
1. Understand Your Audience First:
Every great menu starts with knowing who you’re serving. After all, your menu should feel like it was designed for your customers — not just a random collection of dishes.
Think about it —
- Are your customers mostly health-conscious millennials looking for fresh, plant-based options?
- Are they families who love comfort food and sharing platters?
- Are they tourists eager to try local specialties?
- Or are they busy professionals who prefer quick, on-the-go meals?
The better you understand your audience, the easier it becomes to curate a menu that genuinely connects with them. And this isn’t about guesswork — this is where smart technology, especially AI-powered platforms, can play a huge role.
It can track what’s being ordered the most, repeat orders, best reviews, and even customer searches online when they land on your menu. It helps restaurants identify hidden patterns and real customer preferences. This kind of data can completely change your approach to menu planning. Instead of just sticking with assumptions, you can make data-backed decisions.
In short, understanding your audience is the first — and most important — step of smart menu curation. With the help of AI-powered insights, restaurants today have the opportunity to really listen to their customers and make decisions accordingly.
Also Read: AI for Expanding Restaurant Customer Base
2. The Right Menu Language (Can Make All the Difference):
One cannot emphasize how important well-written menu descriptions are. Creative and sensory-rich language can boost an item’s sales by up to 30% compared to the same meal described simply. Your menu content should present a picture that appeals to all senses and establishes an emotional bond with the diner.
- Words like “homemade,” “locally sourced,” and “chef’s special” evoke emotional responses and justify higher prices. Descriptive menu language allows customers to imagine and even taste the food before ordering it.
- Consider this difference: “Chicken Sandwich” in contrast to “Hand-breaded Crispy Chicken Sandwich with House-made Spicy Aioli on a Toasted Brioche Bun.”
- Emphasize special ingredients and cooking techniques in your menu descriptions to set yourself apart from the competition and support your prices.
- To make dishes more appealing, use cooking techniques (“slow-roasted,” “hand-rolled”), ingredient origin (“wild-caught,” “locally grown”), or texture descriptions (“crispy,” “tender”).
Instead of using general descriptors, use precise language that tells a story about each meal. With the best AI tool, you can automate the data-backed recommendations for each dish, allowing customers to connect emotionally. It helps customers order based on desire rather than price, improving both satisfaction and your bottom line.
Also Read: How AI revolutionizes Customer Experience in the Restaurant Industry
3. Strategic Menu Positioning: Play with Human Physiology!:
Menu placement is psychological.
Studies show that customers’ eyes naturally go to specific spots — often the top-right corner of a menu. That’s prime real estate for your most profitable dishes.
AI-driven menu engineering tools can help visualize how customers interact with menus, highlighting areas that attract the most attention. It’s a strategy that uses design, layout, and positioning to highlight high-profit dishes.
Smart Positioning Ideas:
- Place high-profit dishes at visual hotspots.
- Use frames or icons to highlight “Chef’s Special” or “Most Loved” dishes.
- Group items that work well for cross-selling (like pairing appetizers with drinks).
- Keep complex or low-margin dishes in less prominent sections.
Modern AI-based menu optimization tools can suggest:
- Which dishes deserve top spots
- Where to place premium items for visibility
- Which sections to highlight for upselling
Example: If your burgers give you better margins than your steaks, don’t hide them in the middle of the menu. Feature them as a “Signature Burger Collection” on the first page.
Also Read: Leveraging AI to Collect Customer Insights
4. Smart Pricing: Give Value to Customers:
Many restaurant owners make the classic mistake of pricing their menu items only based on food cost and profit margin. But in reality, there are other things as well, such as competitor pricing, customer spending behavior, and the popularity of dishes.
Also, customers don’t just pay for ingredients — they pay for experience, presentation, uniqueness, and how a dish makes them feel.
So, make sure to deliver the perceived value through smart pricing. Here are some tips that might help:
- Charm Pricing (Psychological Pricing): Numbers ending in 99, 49, 29, and 18 feel lighter to customers than rounded figures.
Example: $29 looks more affordable than ₹30, even though it’s just $1 less.
- Avoid Overusing Currency Symbols: Studies show that removing $ symbols from menus reduces “spending pain” and makes customers less price-conscious.
Example: Instead of writing $32 Grilled Chicken Burger, simply write Grilled Chicken Burger — 32
- Bundling Combos to Increase Order Value: Rather than discounting your bestsellers, create attractive combos that feel like a deal to the customer but also increase their total spend. More value, higher customer satisfaction, and improved margins.
Example: Instead of offering a 20% discount on your bestselling pizza, bundle it into a “Family Feast Combo” with garlic bread and beverages at a higher combined price.
- Create Price Ladders: Offer different portion sizes or versions of the same dish to cater to varying budgets. This gives customers choices while nudging them towards the mid- or higher-priced option.
Example:
- Small Pasta Bowl — $22
- Regular Pasta Bowl — $32
- Loaded Pasta Bowl with Add-ons — $42
- Use “Decoy Pricing” to Nudge Choices: This is a classic strategy where you add a higher-priced item next to your target dish to make it look like a better deal.
→ Example:
- Chef’s Premium Pizza — $99
- Signature Pizza — $69
- Classic Pizza — $49
Most customers will pick the $69 option because it feels like the “middle ground” — not too cheap, not too expensive.
Also Read: The Importance of Customer Analytics in Retail
5. Menu Updates (Time By Time):
Restaurant businesses need to change their menus periodically. A decent rule of thumb is to review the menu every 6-12 months to see how each item is performing. Take the time to group each item into the following categories:
- High profitability and popularity: these are the keepers. Consider placing one of these items in the menu’s “sweet spot” for additional marketing.
- High profitability, low popularity: These are the meals that could use a little help. Consider launching a special or social promotion that will boost interest.
- Low profitability, high popularity: Although these things attract customers, they can also negatively impact your financial results. To increase its profitability, consider raising the price or decreasing the serving size.
- Low popularity and low profitability: While it’s never easy to say goodbye, you should eliminate any meals in this category. Instead, use this place to introduce new, innovative ideas.
As time passes, you’ll notice trends in what guests order. Don’t be scared to update the menu based on your observations. To ensure restaurant success, pay attention to customer input, evaluate data, capitalize on trends, and make the right decisions.
Also Read: How to Use AI in the Restaurant Business
6. Upselling & Cross-selling the Right Way!:
Your restaurant menu is your biggest salesperson, so you should make the most out of it. A well-designed menu doesn’t just list what you offer — it guides customers to order more, try new things, and enhance their dining experience.
The best part? It never feels salesy or forced. It feels natural. When done right, upselling and cross-selling strategies within the menu can significantly increase your average order value — and boost profitability.
Here are smart upselling & cross-selling techniques without being pushy:
- Add-On Options & Customizations: People love customizing their meals, and these little add-ons can quietly add up to a big impact on your revenue.
Example Add-Ons:
- Extra Cheese — 50
- Spicy Garlic Butter Sauce — 40
- Sweet Potato Fries Instead of Regular — 60
- Suggestive Phrasing in Menu Descriptions: Words matter. Using certain phrases within the dish description encourages customers to add more to their order without directly asking them.
Example: Instead of: Grilled Salmon — 65
Say: Grilled Salmon, served with your choice of garlic butter rice or herbed mashed potatoes. Add a fresh garden salad for just 5 to complete your meal.
That small line plants the idea — and many diners happily go for it.
2. Combos, Meal Upgrades, & Pairings: Bundle popular items into value-driven combos or offer meal upgrades that feel like a deal.
Example: Burger + Fries + Drink Combo — 100 (Save 20)
or
Add Soup or Salad to Any Main Course — Just 12
AI tools can help identify which items customers commonly order together and suggest strategic combos that appeal to your specific audience.
- “Pairs Well With…” or “Perfect Match” Suggestions: Create sections or notes on your menu that guide customer choices naturally. Even simple cues like this can drive extra sales without seeming pushy.
→ Example: Pairs well with our Classic Lemon Iced Tea or Perfect with Garlic Breadsticks
- Highlight High-Profit Add-Ons Subtly: Use design cues like small icons, borders, or bold text to draw attention to profitable extras — without overwhelming the customer.
→ Example: Add a House-made Dip — 5 or Upgrade to Truffle Fries — 10
Pro-Tip: Instead of guessing which add-ons or combos might work, AI uses real customer data to guide you.
AI Can Help You:
- Identify the most frequent add-on combinations
- Predict customer buying behavior based on time, season, or location
- Suggest customized upselling prompts for online orders
- Recommend meal upgrades based on historical spending patterns
- Even optimize menu placement for best-selling items or slow-moving dishes
Also Read: Business Intelligence For Small Restaurants
7. Optimize Menu Length – Because Less Really Is More:
One of the most common mistakes many restaurants make? Trying to add everything and please everyone by offering everything.
But here’s the reality:
An overloaded menu overwhelms customers, slows down decision-making, increases kitchen complexity, and often leads to food wastage.
→ Studies show that customers feel decision fatigue when faced with too many choices, which can actually lead to lower sales or rushed orders.
Why is Maintaining an Ideal Menu Length Important?
- Enough variety to feel inclusive.
- Not too much to confuse or slow down the ordering process.
- Better inventory control.
- Faster kitchen operations.
- Higher dish quality consistency.
- Quick Service Restaurants (QSR)/Fast Food Joints: Customers come here for speed, convenience, and familiarity.
→ Ideal Menu Length: 15-25 items total
- Focus on core offerings (burgers, sandwiches, fries, drinks).
- Too many options slow down order time and operations.
- Keep combos & upgrades front and center.
- Casual Dining Restaurants: Customers expect variety but still want quick decision-making.
Ideal Menu Length: 25-35 items across categories
- 6-8 Starters
- 8-10 Mains
- 4-6 Desserts
- 4-6 Beverages
Balance variety with operational efficiency. Rotate seasonal specials rather than adding permanent dishes.
- Fine Dining Restaurants: It’s more about curated experiences than quantity.
→ Ideal Menu Length: 15-25 items
- 3-5 Starters
- 5-7 Mains
- 3-4 Desserts
- 2-4 Signature Beverages or Wine Pairings
Focus on storytelling, ingredients, and exclusivity. Every dish should feel intentional and premium.
- Cafes & Coffee Shops: Light meals, snacks, and beverages are the focus.
Ideal Menu Length: 15-20 food items + beverage range
- 5-7 Light Bites
- 5-7 Sandwiches/Salads
- 4-6 Desserts
- The Drinks Menu can be more elaborate (especially coffees & teas)
Keep food simple and drinks diverse.
Also Read: Key Metrics Every Restaurant Owner Should be Tracking
8. Highlight Dietary Transparency & Allergen Information (Modern Customers Need That):
Today’s customers are conscious of what they put in their bodies – be it meals, beverages, desserts, etc. Dietary transparency isn’t just a nice-to-have anymore; it’s a must for modern restaurants.
Because customers aren’t just looking for great taste — they’re looking for trust, clarity, and conscious dining choices. Especially with the rise of health-conscious eating, food allergies, and lifestyle-based diets (vegan, keto, gluten-free, dairy-free), diners want to know exactly what they’re eating without having to ask multiple questions.
Smart Menu Elements Every Restaurant Should Consider:
1. Clear Dietary Icons
Simple icons next to dishes for:
- Vegan
- Vegetarian
- Gluten-Free
- Dairy-Free
- Nut-Free
- Keto-friendly
- Low-calorie
Example:
🥦 Vegan | 🌾 Gluten-Free | 🥜 Contains Nuts
2. Calorie & Nutrition Count: Not everyone counts calories, but for those who do, this small touch shows care and transparency.
Example:
Grilled Chicken Salad — 320 Calories
3. Allergen Warnings: Allergen warnings on your menu should be clear and help you prevent uncomfortable or dangerous dining experiences.
Highlight common allergens like:
- Nuts
- Dairy
- Shellfish
- Soy
- Gluten
9. Make Room for High-Margin & Low-Labor Items (Do it the Smart Way):
Not every item on your menu needs to be complex or chef-driven to boost your restaurant’s profitability. In fact, some of the most profitable items are the simplest — requiring minimal preparation, fewer ingredients, and less kitchen time, but still delivering perceived value to customers.
These are often called “money-maker items” — low effort, high reward.
Why Do They Matter?
→ These items:
- Speed up kitchen operations
- Reduce labor stress (especially during peak hours)
- Cut down on ingredient wastage
- Improve profit margins significantly
- Works great for upselling or impulse buys
Here are some examples of High-margin, Low-labor Items:
Item Type | Why It Works |
Mocktails & Specialty Drinks | High perceived value with low ingredient cost. Customers love signature beverages. |
Infused Water / Lemonades | Looks premium, costs little. Easy to batch prepare. |
Seasoned Fries or Garlic Bread | Minimal effort, always a crowd-pleaser. Perfect as add-ons. |
Dips, Sauces, & Sides | Easy to prep in bulk, priced individually. Encourages add-ons. |
DIY Platters / Sharing Boards | Customers assemble themselves – minimal kitchen work but priced as an experience. |
Ready-to-assemble Desserts | No-bake items like tiramisu jars, chocolate mousse, or parfaits. Great margins. |
Example in Action: Instead of just offering regular iced tea →
Offer “Summer Special: Fresh Basil & Lime Iced Tea” for $20.
Cost to make? Maybe $5-6. Perceived customer value? Much higher!
Quick-Tip: Train your staff (or automate online orders) to suggest these items naturally.
- Would you like to add our famous garlic butter fries to that?
- People love pairing this dish with our in-house lemonade.
Little nudges = Big results.
10. Balance Dine-in & Online Orders (Because That’s the Future):
Balancing offline and online orders is no longer optional — it’s essential. The future of restaurants isn’t offline vs online — it’s about blending both smartly. Technology and AI aren’t just for large chains anymore. Even small. Both are equally important revenue streams, but they need different strategies.
The goal? Offer consistency, convenience, and connection — no matter how or where your customer orders from.
Here’s how restaurants can create a seamless experience for both without compromising brand quality or profitability.
- Curate Separate Menus for Online & Dine-in: Not every dish is delivery-friendly. Create an optimized online menu featuring food items that travel well and maintain quality.
Example:
- Reserve delicate dishes (like sizzling brownies or complex plated meals) for dine-in.
- Promote rice bowls, wraps, or meal boxes for online orders.
- Smart & Flexible Pricing for Both Channels:
Offline and online ordering come with different cost structures. Adjust pricing to reflect that while maintaining transparency.
Example:
- Dine-in Paneer Tikka – ₹280
- Online Paneer Tikka – ₹310 (includes packaging & delivery cost)
- Upgrade Your Packaging:
In dine-in, ambience creates the experience. In delivery, packaging does. It helps you stand out, create a viral moment, get praised by your customers, etc.
So, here are some tips you can opt for:
- Leak-proof containers
- Temperature-control boxes
- Personalized notes or QR codes for feedback/offers
- Eco-friendly branding
- Consistency in Branding & Food Presentation:
Ensure the customer experience feels connected — whether they dine in or order online. So, make sure to keep the same logo, color scheme, packaging design, and menu tone across platforms.
- Optimize Kitchen Workflow for Hybrid Orders:
Online and dine-in orders shouldn’t clash or delay each other. So, make sure to optimize and manage both channels accordingly and streamline your restaurant operations.
Solution:
- Separate kitchen lines or counters for online orders
- Keep track of orders and manage your staff to ensure seamless operations.
- Build SOPs and batch create based on data.
- Ensure constant alerts and updates for orders, inventory, etc.
- Manage Inventory Smartly Across Channels:
Both offline and online impact stock levels. So, you need to look out for both platforms to avoid overselling or running out.
The Integrated POS and AI platform helps you with:
- Real-time alerts and updated
- Automated ordering
- Predictive intelligence and data-driven insights for smart ordering
Final Thoughts & Streamline Menu With AI
At the end of the day, your menu isn’t just a list of dishes — it’s a powerful sales tool that directly impacts customer experience, brand positioning, and profitability.
But manually doing all of this? Time-consuming, complex, and often based on guesswork. That’s exactly where AI steps in and transforms the game.
It helps you identify best-selling dishes, suggest smart pricing, recommend upsells, and optimize your online and offline menu — all backed by real-time data.
If you’re looking for such a smart solution, Livelytics has got you covered. It’s an AI-powered platform built for the restaurant industry that not only helps you simplify menu engineering but also with inventory management, predictive analytics, smart recommendations, power business growth, and much more — all in one place.
Ready to See It In Action? Book your FREE demo today and experience how Livelytics can help you engineer a menu that sells more, wastes less, and keeps customers coming back and beyond!