wa dave:
Your local guys (US) will add more relevant infomation for you.
Dave
RELEVANT INFORMATION FROM US: Dave is an A$$, and should be completely ignored.
That said, Dave is right on with what several of us are working towards. Your question really depends on your pricing model. The two ends of the spectrum seem to be 1) set really high prices and have lots and lots of discounts and “specials” that get you to your target food costs; and 2) set the price you want to sell at, and have limited to zero specials that are value added items rather than discounts. Most fall somewhere in between.
We lean our shop towards the pricing a fair price and have limited specials. Our specials are limited time, and include such things as new specialty pizzas not on the menu, add a dessert for a dollar, meal combinations, event-related deals to build sales on slow periods.
My only recommendation to you is that you be diligent to know your cost of goods on your specials. If you run a large portion of sales at 38% to 45% then you can break the bank. Have specials that are specifically directed at introducing new products, featuring high margin items, and building add-on sales. If you have specials, then up-sell like demons to get that ticket total bigger every time. Know your market, know your competition, and know your costs.
Actually, Dave is one of my mentors . . . us fat balding guys gotta stick together. I may need that job in Australia if the new menu doesn’t bring in enough new revenues