Earlier this week, McDonalds announced that they are eliminating several sandwiches from their menu. This follows a recent trend in the restaurant industry to simplify menus by cutting back on product offerings. There are a number of benefits to this “less is more” strategy, for the consumers as well as the business owners. The same strategy is also being adopted by retail stores who are unable to compete with online or big box retailers on price or volume of items offered, but still maintain an advantage when it comes to quality and personal service.
Here are three reasons why less is sometimes more:
1- Customers are overwhelmed – Consumers are bombarded daily with information overload and want a break from making even more decisions. By simplifying the shopping experience you are actually reducing the stress of the customers and saving them valuable time. It is much easier for someone to make a decision on a small offering of different choices than it is to choose between a large number of items that all look similar.
2- It simplifies inventory management – The fewer products you offer, the more control you have over your inventory. This is an excellent way to reduce waste and cut expenses while allowing you to pay more attention to quality. Decide which items are your best sellers and which are the most profitable and cut the ones that aren’t.
3- It helps to build your brand – Many popular restaurant chains like Chipotle and Chick-fil-A have a very limited number of menu offerings. People choose to eat there because of the quality of the products offered instead of the variety, and are willing to pay a premium to do so. Your business is trying to attract the same type of consumer. Reducing inventory also helps improve the visual look of your shop by cutting down on displays or unnecessary clutter.
In such a crowded marketplace, it is becoming increasingly difficult for small businesses to be everything to everyone. Focusing on building your brand around fewer options can lead to greater profits if you take the right approach.