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Menu Engineering

Menu Engineering
The concept of menu engineering is a common one and is found in a number of text books (amongst others refer to Menu Engineering by Michael L. Kasavana and Donald J. Smith).

Menu engineering examines the sales history of a number of menu items, their selling price and their cost price. It then relates their profit margins (also referred to as contribution margins) and their menu mix percentages to see which items are proving both popular and profitable. The worksheet provides a menu engineering worksheet, with field names for you to follow. The worksheet determines the classification of every menu item into one of the following classifications, discussed briefly below:

 

Stars These are the most profitable items on your menu. One should maintain rigid specifications for quality, portion size and presentation. These items should be in a highly visible position on the menu and well be your restaurant's signature items.
Plowhorses These items are popular, even though they do not yield a high contribution margin. They are normally items popular with your price-conscious clientele.
Puzzles These items are low in popularity yet yield high contribution margins. You may have to consider whether these items should be on your menu at all.
Dogs These are your losers - they are both unpopular and yield low contribution margins. These items may have to be eliminated or their price increased to see whether they can at least reach the status of Puzzles.