Restaurant Menu Planning: Strategies and Tips to Optimize Your Menu

When diners first step into a restaurant, there’s a lot to take in: the decor, the layout, the guests and employees, the overall “vibe.”

But for 99.9 percent of restaurants, it’s the menu that really matters to your guests — and to the success of your business. Your menu doesn’t have to be fancy or even unique: Whether you’re offering quick-service burgers or fine dining at its finest, strategically planning out your menu is a critical factor when it comes to restaurant profitability.

And even if your menu was thoughtfully planned: it’s wise to constantly evaluate what you’re offering, how it’s performing, and why it belongs there. Here’s what to think about when you’re planning (or revamping) your restaurant menu.

Menu planning overview

Menu planning starts with your restaurant concept. The best menus have a sense of creativity that feels true to a restaurant’s brand, whether that’s an homage to a childhood favorite dish or a masterpiece that took months and months of tinkering with flavors to create.

Planning your menu requires three steps:

List out all of your menu items, including descriptions of each item.
Categorize your items into different areas, like appetizers, entrees, or seafood.
Set prices for each item.

Sounds easy, right? Not so much.

Why is menu planning important?

The menu planning process is actually one of the most complex you’ll go through as a restaurant business, because it combines business analysis (profit margins and cost/benefit analysis) with creativity (what inspires you) and design (what it looks like on paper or on your website). That’s a lot!

But it’s one of the most important processes your restaurant undergoes, especially if you rotate your menus with the seasons and suppliers. Menu planning, done right, evokes a feeling, harnesses your back-of-house skills and creativity, and flows together so that every diner leaves your restaurant happy and satisfied — and you turn a profit.

5 factors to consider when planning a menu

As you build out your menu, keep in mind:

Length. Your menu should probably be smaller than you think! Unless you’re the Cheesecake Factory — known for their 21-page, 250-item coffee table-sized menu — you’ll want to come up with a short list of items that truly represent the best of what your kitchen has to offer. In fact, small menus are back in style — not just for fancy bistros but for well-known spots like Applebee’s, Red Robin, and iHOP, which have all downsized their menus in the last year.
Quality. Every kitchen has strengths and weaknesses. Acknowledge where your staff is at and what they do well…and what doesn’t always hit the mark. If timing is an issue for a particular dish, cut it. If your customers complain about your breadsticks, cut them. Focus on what you do spectacularly well, and that’s what you’ll become known for.
Costs. Prices have gone up, up, up this past year for everything from kale to cardboard boxes, shrinking already slim profit margins. Do the math for each menu item and cut the ones that don’t help you break even.
Delivery. With takeout and delivery a core part of any restaurant model today, consider how each menu item handles transit time. Maybe now isn’t the time to debut too many fried or saucy items that don’t hold up well. Consider how you’ll package each item, too.
Names and descriptions. You don’t order a double cheeseburger at McDonald’s — you order a Big Mac. While you don’t have to trademark every item you make, think about common mouthwatering descriptors to use for your menu items, like crispy, crunchy, fresh, hearty, smoky, or juicy. Keep your descriptions brief and specific so customers know exactly what they’re going to get when they order it.

How to develop a more profitable restaurant menu

The secret to a more profitable menu isn’t just about the food.

It’s about psychology. The average diner spends only 109 seconds looking at your menu. That mean they’re probably not reading it like a book; they’re skimming and scanning — often distracted by fellow guests, or servers coming and going — so you’ve got a short amount of time to make an impact. Whether you’re using a physical menu or putting it all online using QR codes, the way you design and lay out the menu matters just as much as what’s on it.

Here are a few steps to follow for a more profitable menu:

As you evaluate your menu item ideas, create a grid with profitability on one axis and popularity on the other. Ideally, you want to maximize both profitability and popularity (the top right quadrant), as that’s where your big money-makers are that your customers love. Sort each item into the different quadrants, so you can identify your hits…and your duds. This is sometimes called menu engineering.
Once you can see everything on one chart, you can start to take action. Cut anything that’s low in popularity and low in profitability, and then evaluate cost-saving opportunities for anything that’s popular but not very profitable. Your customers obviously love ordering that item, but can you make an ingredient swap that won’t impact the quality, but may help your margins? For anything that’s profitable but unpopular, consider a social media promotion, asking servers to talk it up at tables, or running a discount. Maybe your customers don’t know about it — or maybe your prices are a little too high.
Think about how you’re putting your menu together to maximize your high profitability items. In vertically arranged menus, for example, the eye tends to gravitate toward the first and last items in a list, so any dishes in those spots will be big sellers. Another sweet spot? The upper right corner.
Use visual cues like boxes, graphics, or typography to highlight big-ticket items and maximize space for your layout.
As you work on your menu planning, test your menu designs and items and don’t discount customer feedback. If you have customers clamoring for a pastrami sandwich (or you’re known to have that as a “secret” item), offer it!
Similarly, if you receive negative feedback on a specific menu item after more than one service, then you know you need to revisit it. Test out different menu designs, ask your customers what they think, and have fun with it — your menu is what makes you stand out!

Optimize your restaurant operations with digital tip payments

If you’re revamping your menu, it might be a good time to revamp your tip payment process, too. Digital tip payments cut your labor costs, eliminate bank runs, and reduce the risk of theft and error — all while helping you hire (and retain) more workers. See Kickfin’s digital tip payment platform in action!

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Product and Company News

Kickfin Named to Deloitte Technology Fast 500 List for Second Consecutive Year

Kickfin is proud to announce that we have once again been named to the 2025 Deloitte Technology Fast 500™, a ranking of the fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America, now in its 31st year.

Kickfin is the only company on the list purpose-built for restaurants and bars to automate tip management — marking another major milestone for our team, our partners and the thousands of restaurant operators who trust us to modernize their tip-pooling and payout workflows.

Why it matters

When it comes to tipping out employees, cash is no longer king — and needs are changing fast. Hospitality workers demand (and deserve!) faster, cashless payouts; burned-out managers need more hours in their day; and now more than ever, operators care about visibility, compliance, and employee satisfaction.

Kickfin delivers on all of those fronts by:

Freeing managers up from bank runs and the back office, so they can focus on everything that can’t be automated.
Ensuring employees walk out the door with their earnings already in their existing bank account, no waiting, no detours.
Helping operators stay compliant, track everything, and uncover new efficiencies.

What sets Kickfin apart

There’s a reason Kickfin is the best-in-class tip management solution.

Broader POS integrations: We’ve expanded our direct integrations with leading POS brands, including Toast, Square, SkyTab, Genius POS, Union, and more — so managers can pool and pay out tips in a matter of clicks.
Enhanced tip-pool logic and flexibility: Our platform automates even the complex tip pool policies, with more tip pooling and automated reconciliation features than any other solution, while keeping the end-user experience simple and intuitive.
Instant, cashless payouts: With fewer cash drawer runs and real time bank deposits, teams experience faster shift-close, fewer errors and improved satisfaction.
Built-in compliance and reporting: As tip-pooling regulations continue to evolve, Kickfin empowers customers with robust features like digital paper trails and payroll integrations to ensure accuracy and compliance from end to end.
Customer success focus: Our fully U.S.-based Customer Success team is partners with customers to make onboarding fast and easy, no matter how tricky your tip policy may be, so you get ROI right away.

A big thank you

We’re honored to be recognized by Deloitte, and even more excited about what comes next. For restaurant operators, managers and employees alike, the future of tip management is here, and we’re thrilled to be your partner.

Ready to see what automated tip pooling and instant payouts look like in action? Book a demo today!

Product and Company News, Technology and Software

New Kickfin Feature Alert: Blended Payouts Are Here!

Brand new feature, coming in hot!

As part of our latest product release, Kickfin now offers Blended Payouts for even easier, fully automated tip management and reconciliation.

Why Blended Payouts Matter

Now more than ever, restaurant guests use credit cards or digital payment methods instead of cash. For many operators, that means there isn’t enough cash on hand at the end of a shift to pay out tips. But employees still want to receive their payouts immediately after clock-out.

As our customers know, Kickfin solves for those cash shortages by automating and digitizing the payout process — giving you the power to send instant, cashless payouts directly to your employees’ bank of choice, 24/7/365.

The result: minimal cash handling and risk, better accuracy and tracking — and of course, fewer bank runs.

However, digitizing payouts often results in some leftover cash in the drawer. Over time, we’ve heard from customers who prefer to use up that cash to pay out tips, then distribute the remaining tip amounts via Kickfin.

With Blended Payouts, you can do just that — and still account for every penny paid out, quickly and accurately, within the Kickfin platform.

How Blended Payouts Work

As always, all Kickfin customers can still choose to split individual payment amounts between instant payouts and payroll. Once you enable the new Cash Payouts feature, you will now be able to account for any cash tip payments that were also distributed.

Note: This feature lives within Kickfin’s Tip Calculator, which means you must have an active POS integration to use it.

Once it’s enabled, you’ll see the new “Cash Payouts” button on the Payment Review screen.
After clicking the button, users will be able to enter the individual cash amounts that were distributed to employees.
Back on the Review screen, you’ll see instant payout, payroll, and cash payment amounts for each employee. All three payment methods will have their own line items and be accounted for under your Payment Details.

Watch here for a full walkthrough of the new feature.

Ready to enable Blended Payouts?

If you’re a current customer, in touch with our Customer Success team at support@kickfin.com to activate this new feature.

(Not a customer yet? Click here to see Kickfin in action and learn how you can automate tip pooling and payouts!)

Product and Company News, Technology and Software

Kickfin Partners with Union POS to Automate Tip Distribution for High-Volume Bars and Restaurants

Kickfin is excited to share the latest addition to our integration marketplace. Read on for all the details around our partnership with Union POS. (If you’re a current Union POS customer and you’d like to learn more about how Kickfin automates tip pooling and payouts, schedule a live demo here.)

AUSTIN, Texas (August 13, 2025)—Kickfin, the leading tip management software, today announced the launch of its integration with Union, the purpose-built POS and engagement platform powering the nation’s busiest bars, nightclubs and restaurants.

Thousands of operators use Kickfin to eliminate tedious tip calculations and remove cash from the tip distribution process so managers can move faster, track everything, and ensure accuracy and compliance.

By activating the Kickfin-Union integration, we eliminated clunky spreadsheet formulas and fully automated our tip pooling process. After going live, we reduced our time to close out by an average of 30 minutes after every shift.

The Kickfin-Union integration gives Union’s customers the power to auto-calculate tip pools in a matter of clicks and send payouts directly to employees’ bank of choice—no cash or pay cards required.

“By integrating with Kickfin, we’re giving operators the power to choose best-in-class tools that work seamlessly with their Union POS and data,” said Alex Broeker, the CEO and founder of Union. “This direct integration brings automated tip management to our operators while unlocking new opportunities for operational efficiency, employee satisfaction and simplified compliance.”

KPG Hospitality, which operates experiential bars and unique concepts throughout Texas and Tennessee, was among the first operators to activate the Kickfin-Union POS integration.

“Our venues run at a very fast pace. When you consider the time it takes managers to manually calculate tip amounts every day, after every shift, across every location, it’s a lot of unnecessary admin hours,” said Troy Cramer, the managing partner at KPG. “By activating the Kickfin-Union integration, we eliminated clunky spreadsheet formulas and fully automated our tip pooling process. After going live, we reduced our time to close out by an average of 30 minutes after every shift.”Key Features of the Union + Kickfin Integration:

Automated Tip Pool Calculations: Calculate complex tip pools in seconds, saving managers hours of administrative work while ensuring accuracy and transparency.
Instant Cashless Payouts: Pay out tips directly to employees’ bank of choice instantly, eliminating the need for cash handling and bank runs.
Simplified Compliance: Maintain a digital record of every payout, making tip reporting and tax compliance straightforward.
Enhanced Tracking: Easily track tips by pay period with comprehensive reporting capabilities.
Streamlined Operations: Implement complex tip policies with just a few clicks through an extremely easy-to-use interface.

“Our integration with Union, a leading POS system built specifically to support the busiest venues in the industry, makes perfect sense,” said Kickfin co-CEO Brian Hassan. “Together, we’re creating a solution that saves time, reduces errors, and delivers a better experience for both operators and their staff.”

Available immediately through both Union and Kickfin, venues can integrate their systems and begin leveraging these capabilities today. To learn how this partnership can transform your tip management operations, schedule a demo at GetUnion.com or kickfin.com/demo.

About Union
Union powers a first-of-its-kind venue operating system purpose-built for the nation’s busiest bars and restaurants. More than a point-of-sale, Union connects 1,500+ establishments with 5M+ consumers and leading brands through real-time consumption data. The platform drives operational efficiency, enables frictionless mobile ordering, and facilitates brand-patron interactions that enhance venue loyalty. With $2B+ in annual transactions, Union creates a virtuous cycle where venues improve customer experiences, brands gain direct consumer engagement, and patrons enjoy personalized rewarding hospitality—transforming high-volume operations into next-gen guest experiences. To learn more about Union, visit http://www.getunion.com

About Kickfin
Kickfin is a leading digital tip management platform that automates tip pool calculations and delivers cashless tip payments directly to employees’ bank accounts. Designed to eliminate the administrative burden of tip management, Kickfin helps restaurants, bars, and hospitality venues save time, reduce errors, and improve employee satisfaction. With features like instant payments, digital record-keeping, and simplified compliance, Kickfin is transforming the way venues handle tip distribution in today’s increasingly cashless economy.

Industry Trends, Restaurant Management

Kickfin vs. TipHaus: Which Tip Management Software is Best for You?

If you’re in the market for tip management software, you might find yourself comparing Kickfin and TipHaus.

Kickfin is the largest provider of instant tip payouts on the market and has processed more than $2 billion in employee payments for all kinds of restaurants, from “mom-and-pops” to national franchises — and everything in between.

Kickfin and TipHaus are both designed to digitize tip distribution for restaurants. However, there are some significant differences between the two platforms that you’ll want to consider before making a decision.

Kickfin and TipHaus: Compare at a Glance

Why Do Operators Choose Kickfin Over TipHaus?

Kickfin Offers Better Pricing

Kickfin’s direct-to-bank transaction fees are more competitive than the transaction fees TipHaus quotes their customers.

This is primarily due to the fact that Kickfin is the largest provider of instant payouts in the country (validated by Visa and MasterCard data), with more than $2 billion in employee payments and multiple payment processor relationships.

Employees Prefer Kickfin

Kickfin was built to make life easier not just for operators, but also for their employees.

No app downloads: Kickfin only requires a one-time, 30-second enrollment for employees. (No app downloads or extra phone storage needed!) Payment history and reporting data can be viewed as needed simply by logging into their browser.
No paycards required: Kickfin also doesn’t require pay cards, while TipHaus offers “HausMoney” as a primary payout option for employees. HausMoney is essentially a pay card that employees’ tips are loaded onto. Funds aren’t available to use until the following day. HausMoney may be free for operators, but many employees don’t want to be forced to use a pay card due to the hassles of transferring funds to their own bank accounts, as well as the transaction fees and wait times they may incur. They’d prefer their earnings streamed to their accounts instantly, after every shift—which is how most Kickfin customers choose to pay out their employees.

Zero Prefunding* With Instant Payouts

With Kickfin, customers can send instant, direct-to-bank payouts with zero prefunding required.* While TipHaus does offer zero prefund, employee payouts must be sent to a TipHaus paycard (HausMoney). In other words, if you want to use a zero prefund option with TipHaus, you won’t be able to offer instant, direct-to-bank payouts to your employees.

Option to Manually Input Tip Data

With TipHaus, a POS integration is required, and all tip payment data is generated by the software’s tip calculator.

Kickfin was designed for ultimate flexibility. While many customers use Kickfin’s POS integration to auto-calculate tip amounts, some restaurants don’t need automated tip calculations and prefer to use Kickfin unintegrated. That isn’t an option with TipHaus.

Additionally, some Kickfin customers use Kickfin to auto-calculate tip pools, then manually upload other tip data on an as-needed basis. This comes in handy when you need to pay out “extra” staff, like entertainers, security guards, etc.

Easy, Accurate Distribution of Auto-Gratuities and Service Charges

Kickfin tracks Tips and Auto-gratuities separately. As a result, you can report those types of payments to payroll separately and handle them independently for tax purposes.

Why does that matter? In light of the 2025 “No Tax on Tips” legislation, tipped employees no longer have to pay federal income tax on the first $25,000 in tips earned each year. However, they do need to pay taxes on earnings from services fees, autogratuities and other compulsory charges that are not considered tips by the IRS.

(If 100% of your service charges does not go to your employees, Kickfin allows the “house account” to retain a portion of service charges, while the rest is distributed to your team.)

Enhanced Tip Calculation Functionality and Features

Kickfin’s Tip Calculator was designed to be both highly robust—so it can handle the most complex tip pooling policies—while also being incredibly simple and intuitive to use.

A few unique things about Kickfin’s Tip Calculator:

No data sync delays: Tip calculations are immediate and on-demand. With Tiphaus, a data sync process is required which can add extra time to your tip calculation process.
Built-in flexibility: Kickfin releases new Tip Calculator features on a regular basis based on feedback we regularly source from customers. For example, Kickfin now offers check splitting for both individual checks and groups of checks, making it easier to handle large parties and events.
Ease of use: Customers regularly shout out our sleek, high-quality user interface compared to other platforms. Notably, we’ve made it easy for managers to review all details before hitting “submit,” ensuring the accuracy of every payout.

Cash Tip Tracking and Payouts

Many operators choose Kickfin because they don’t have enough cash on hand to pay out credit card tips, and they want to reduce the amount of cash handling in their restaurant altogether.

However, we know cash will probably always be (a small) part of the equation. Kickfin makes it easy for you to handle that with some added functionality:

Tips left in cash: If a diner leaves a pile of cash at your table, it might not get recorded in your POS. However, Kickfin allows you to record it and distribute it through our platform.

Cash payouts: Many operators may want to distribute all of the cash left in their register at the end of a business day to avoid bank runs. Again, that’s easy to do with Kickfin.

Multiple Payment Processors for Guaranteed Deliverability

For many employees, especially those living paycheck to paycheck, it’s critical that they receive their tip earnings and that they’re instantly accessible/ready to use.

TipHaus uses only a single processor. Kickfin uses multiple payment processors to ensure deliverability of payouts should a processor experience a disruption or become insolvent.

Direct POS Integrations

All of Kickfin’s POS integrations are direct API integrations, while TipHaus has been known to utilize third-party software to integrate with some POS systems. The problem with third-party software is that it can be susceptible to more connectivity issues, creating problems with data reliability.

Top-Ranked Customer Support

Kickfin has an award-winning Customer Success team that is exclusively focused on helping our operators get the most value possible out of Kickfin.

Every member of our team is based in the U.S. We provide free, personalized training and onboarding for your whole team, and when questions or issues arise, we can be reached by phone, email, text or chat. We also have a robust library of support documentation and videos that provide step-by-step guidance for every aspect of the platform.

Credibility and Recognition

At the end of the day, Kickfin’s large and fast-growing customer base speaks for itself, as do their rave reviews of the platform.

For multiple years, Kickfin has been the only tip management software that is recognized on both the Inc. 5000 and Deloitte Fast 500 lists. Kickfin has received recognition from peer software review sites like G2 and Capterra for consistently high customer rankings and reviews.

*Zero prefund is available to select customers after a credit review to confirm their fit with the zero prefund program.

Ready to take the next step?

See why thousands of restaurant pros use Kickfin to auto-calculate tip pools and pay out tips in real time, no cash or math required! Get a demo today.