Yahoo Finance

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.