Chapter 11

Menu Engineering

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Sample Menu Engineering
Worksheet
A B C D E F G H L P R S

Entrée # Menu Food Sales Item Menu Menu Menu CM MM Class

Sold Mix% Cost Price CM Cost Rev. CM Cat. Cat.
GS 72 $4.65 $14.45

Steak 130 $5.35 $18.95

Seafood 94 $7.25 $22.50

Tofu 154 $4.20 $14.45

Pork 125 $6.90 $16.45

Total N=

Addtl I= J= M=
Calcs.
Addtl. K= O= Q=
Calcs.

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Sample Menu Engineering
Worksheet (continued)
A B C D E F G H L P R S
Entrée # Menu Food Sales Item Menu Menu Menu CM Cat. MM Cat. Class
Sold Mix% Cost Price CM Cost Rev. CM
GS 72 12.52 $4.65 $14.45 $9.80 $334.80 $1040.40 $705.60 L L Dog
%
Steak 130 22.61 $5.35 $18.95 $13.60 $695.50 $2463.50 $1768.00 H H Star
%
Seafood 94 16.35 $7.25 $22.50 $15.25 $681.50 $2115.00 $1433.50 H H Star
%
Tofu 154 26.78 $4.20 $14.45 $10.25 $646.80 $2225.30 $1578.50 L H PlowH
%
Pork 125 21.74 $6.90 $16.45 $9.55 $862.50 $2056.25 $1193.75 L H PlowH
%
Total N= 100%
575
Addtl I= J= M=
Calcs. $3220.8 $9900.45 $6679.35
Addtl. K= O= Q=
Calcs. $11.62 14%

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Index of Menu Engineering
Worksheet Calculations
• A = Menu items
• B = Number of menu item sold
• C (Menu mix %) = B ÷ Total # of entrées sold
• D (Food cost) = Standard cost of each item
• E (Sales price) = Menu price of each item
• F (Item CM) = E – D
• G (Menu cost) = D · B
• H (Menu revenues) = E · B

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Index of Menu Engineering
Worksheet Calculations
•
(continued)
I = Combined menu cost of all items
• J = Combined menu revenues of all items
• K (Food cost %) = I ÷ J
• L (Menu CM) = F · B
• M = Combined menu CM of all items
• N = Total items sold
• O (Average contribution margin) = M ÷ N

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Index of Menu Engineering
Worksheet Calculations
•
(continued)
P (Contribution margin rating) = If the item’s F >
O, then the item is designated a high contribution
margin rating; if the item’s F < O, it is designated
a low contribution margin rating.
• Q = (1 ÷ total number of menu items) · 0.7
• R (Menu mix rating) = If the item’s C > Q, then the
item is designated a high menu mix rating; if the
item’s C < Q, then it is designated a low menu
mix rating.
• S = Menu item classification
Copyright © 2006 by John Wiley
& Sons, Inc. All rights reserved
Menu Engineering Categories

Plowhorse Star

High Popularity High Popularity

Low Contribution Margin High Contribution Margin

Star Puzzle

Low Contribution Margin High Contribution Margin

Low Popularity Low Popularity

Copyright © 2006 by John Wiley

& Sons, Inc. All rights reserved
 Menu Engineering: What
Should You Do with Your
•
Results?
Stars: Profitable and popular; possible to increase
their menu prices without affecting volume.
• Dogs: Unprofitable and unpopular; remove from
the menu unless there is a valid reason for
continuing to sell them or profitability can
somehow be increased.
• Plowhorses: Unprofitable but popular; keep on
menu but increase their contribution margins
without decreasing volume.
• Puzzles: Profitable but unpopular; keep on menu
but increase their popularity.
Copyright © 2006 by John Wiley
& Sons, Inc. All rights reserved