Key Takeaways
- Starbucks, Outback Steakhouse, Papa John’s and Chili’s are among the chain restaurants trimming their menus.
- The streamlining runs counter to industry trends, and for some, accompanies a broader turnaround plan.
- Simplifying menus can reduce ingredient and labor costs, result in higher quality products and shift attention to higher-profit dishes.
Do you want more choices on a menu? Or a slimmer set of options?
Restaurants are trying both strategies. Major chains across the the US have been expanding their offerings in recent years, seeking to cater to different tastes and generate hype. But some big names are moving in the other direction: Outback, for example, is “attacking” a complex menu, while Papa John’s is cutting items that throw off the rhythm in the kitchen.
Besides improving speed and quality, streamlining a menu can reduce waste, lower ingredient and labor costs and shift the diner’s eye to higher-profit dishes and drinks, said Susan Roe, an associate processor in the hospitality and tourism management department at San Francisco State University.
Some edits are part of a larger comeback campaign. Starbucks (SBUX) plans to trim 30% of its menu. The focus will help baristas quickly serve quality items, while fostering a more inviting atmosphere, executives have said.
The streamlining bucks broader industry trends. Major restaurants have in recent years generally expanded menus that were chopped during the pandemic, foodservice analysis groups said, when restaurants sought to stretch budgets by buying more items in bulk and to maximize output amid labor shortages.
Bloomin’ Brands, Papa John’s Are Looking to Simplify
Like Starbucks, Bloomin’ Brands (BLMN) is simplifying its approach amid sluggish sales. The parent company of Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill lost market share during the fourth quarter, CEO Michael Spanos said last month.
Bloomin’ is trimming menus by up to 20%, Spanos said, adding that less popular and labor-intensive items will be first to go. The culling should alleviate pressure in the kitchen, he said. “It enhances morale, and it brings down our labor costs in the back of the house,” Spanos said, according to a transcript of the company’s latest earnings conference call made available by AlphaSense.
Novelty can disrupt the flow in the kitchen and distract from a chain’s core mission, according to Papa John’s (PZZA) CEO Todd Penegor.
“We’re cranking a lot of great pizzas, and then all of a sudden” an order requires a search for a unique topping “and it takes us away from making a great pizza,” he said, according to AlphaSense’s transcript of a December investor meeting.
Penegor earlier this year said Papa John’s had recently removed roughly 10 items and planned to pull even more.
Menu Sizes Have Been on the Rise
Before the pandemic, menu sizes were fairly stable, showing a slight decline quarter after quarter, according to Lizzy Freier, director of menu research and insights at food service analysis firm Technomic.
“At the onset of the pandemic, we saw a huge decline as operators really cleansed their menus,” she said. “Since 2020, we’ve seen operators slowly build their menus back up again.”
The average menu size increased across all types of establishments but fine dining restaurants in 2024, according to an analysis of larger chains from Datassential, a food and beverage intelligence platform.
Even chains that are looking to scale back their menus don’t plan to stop adding new items entirely. Papa John’s, for example, has an “innovation pipeline” in the works for late 2025, said Penegor, who wants to sprinkle in the novelty customers crave.
Sweetgreen (SG) just debuted an air-fried version of french fries and has a “drumbeat of newness” in store, CEO Jonathan Neman said last month. Chipotle is another firm that has broadened its menu in recent years, Freier said.
Chains on the ‘Journey of Simplification’
Chili’s took things in the opposite direction and is now enjoying a resurgence, said Kevin Hochman, CEO of parent company Brinker International (EAT). The chain has eliminated about a quarter of its menu, Hochman said in late 2024.
Quality has improved, with staff making guacamole daily and serving crispier bacon, he said. Chili’s has also been serving people faster despite “dramatic” increases in traffic, Hochman said. Restaurant sales rose 31% year-over-year in the most recent quarter, he said in January.
“In short, Chili’s is broadly relevant again,” Hochman said, according to a transcript from AlphaSense.
Now, according to Hochman, another Brinker’s chain—Maggiano’s Little Italy—is starting “the journey of simplification.”