Ascertaining Restaurant Financial Sustainability by Analyzing Menu Performance

Conceição Gomes (), Cátia Malheiros, Luís Lima Santos and Filipa Campos
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Conceição Gomes: CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2520-614 Peniche, Portugal
Cátia Malheiros: CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2520-614 Peniche, Portugal
Luís Lima Santos: CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2520-614 Peniche, Portugal
Filipa Campos: CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2520-614 Peniche, Portugal

Tourism and Hospitality, 2025, vol. 6, issue 1, 1-20

Abstract: The complexity of companies in the restaurant industry is clear, and various techniques can be used to make decisions. The analysis of performance and the optimization of restaurant menus are considered important, which is why several approaches can be used. The objective of this study is to achieve financial sustainability in the restaurant industry through menu performance analysis and identifying strategies to improve menu profitability. A qualitative methodology of a dual case study was adopted by comparing a restaurant within a hotel and a street restaurant. The results show that for restaurant owners and managers, these approaches are useful, simple, and pertinent for measuring the performance of the restaurant menu and consequently improving results. The originality of this research lies in the fact that three analysis models were applied simultaneously, allowing for an in-depth analysis of the profitability of the menus being analyzed. This study identified the most profitable items for each restaurant and the items that needed to be changed to contribute more to the profitability of the restaurant’s menu, resulting in practical implications. Through theoretical implications, this study corrects the limited knowledge about performance through the restaurant menu, creating a starting point for knowledge spreading to society. In conclusion, this research is one of the first to bridge the gap between theory and practice, taking several approaches to assess restaurant menu performances, which can be useful in restaurants to promote sustainability.

Keywords: restaurants; menu performance; profitability; sustainability; menu engineering (search for similar items in EconPapers)
JEL-codes: Z3 Z30 Z31 Z32 Z33 Z38 (search for similar items in EconPapers)
Date: 2025
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