Restaurant CEO Sees Menus Offerings Staying Lean Post-Pandemic

(Bloomberg) -- Restaurants slashed their menus early in the coronavirus pandemic to preserve cash. It worked so well, some companies are now considering making the changes permanent.

Bloomin’ Brands Inc. Chief Executive Officer David Deno said Friday that “menu simplification” helped the operator of Outback Steakhouse and Carrabba’s Italian Grill to preserve profitability during the second quarter. Fewer choices means less food waste and reduced labor due to quick prep times.

“That is absolutely something we want to preserve moving forward,” he said during a company earnings call.

Restaurants have been clobbered by the pandemic, which has forced many into entirely new delivery or pickup businesses. Menu cuts are a simple way to save a bit of cash compared with furloughs or closures.

Companies such as McDonald’s Corp., which eliminated all-day breakfast, and Romano’s Macaroni Grill have also moved to reduce menu offerings in recent months. Paring offerings also allows restaurants to focus on foods that are easier to deliver.

“Chains need to offset higher delivery and packaging costs with higher-margin menu items that travel well,” said Bloomberg Intelligence analyst Michael Halen.

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