MENU

ENGINEERIN
G
 THIS IS A TECHNIQUE OF MENU
ANALYSIS THAT USES TWO KEY
FACTORS OF PERFORMANCE IN
SALES OF INDIVIDUAL MENU ITEMS:
THE POPULARITY AND THE GROSS
PROFIT CONTRIBUTION OF EACH
ITEM. THE ANALYSIS RESULTS IN
EACH MENU ITEM BEING ASSIGNED
TO ONE OF FOUR CATEGORIES:
 STARS:- HIGH POPULARITY AND HIGH
CASH GROSS PROFIT.
 PLOWHORSES:- HIGH POPULARITY AND
LOW CASH GROSS PROFIT.
 PUZZLES:- LOW POPULARITY AND HIGH
CASH GROSS PROFIT.
 DOGS:- LOW POPULARITY AND LOW CASH
GROSS PROFIT.
 STARS
 THESE ARE THE MOST POPULAR ITEMS
WHICH MAY BE ABLE TO YIELD EVEN
HIGHER GROSS PROFIT CONTRIBUTIONS
BY CAREFUL PRICE INCREASES OR
THROUGH COST REDUCTIONS. HIGH
VISIBILITY IS MAINTAINED ON THE MENU
AND STANDARDS FOR THESE DISHES
SHOULD BE STRICTLY CONTROLLED.
 PLOWHORSES
 THESE AGAIN ARE SOLID SELLERS
WHICH MAY ALSO BE ABLE TO YIELD
GREATER CASH PROFIT CONTRIBU-
-TIONS THROUGH MARGINAL COST
REDUCTION. LOWER MENU VISIBILITY
THAN STARS IS USUALLY RECOMME-
-NDED.
 PUZZLES
 THESE ARE EXACTLY THAT--- PUZZLES.
ITEMS SUCH AS FLAMBÉ DISHES OR A
PARTICULAR SPECIALITY CAN ADD AN
ATTRACTION IN TERMS OF DRAWING
CUSTOMERS, EVEN THOUGH THE SALES OF
THESE ITEMS MAY BE LOW. DEPENDING ON THE
PARTICULAR ITEM DIFFERENT STRATEGIES MIGHT
BE CONSIDERED,RANGING FROM ACCEPTING THE
CURRENT POSITION BECAUSE OF THE ADDED
ATTRACTION THAT THEY PROVIDE TO
INCREASING THE PRICE FURTHER.
 DOGS
 THESE ARE THE WORST ITEMS ON A MENU AND
THE FIRST REACTION IS TO REMOVE THEM. AN
ALTERNATIVE, HOWEVER, IS TO CONSIDER ADD-
-ING THEM TO ANOTHER ITEM AS PART OF A
SPECIAL DEAL. FOR INSTANCE, ADDING THEM IN A
MEAL PACKAGE TO A STAR MAY HAVE THE
EFFECT OF LIFTING THE SALES OF THE DOG
ITEM AND MAY PROVIDE A RELATIVELY LOW COST
WAY OF ADDING SPECIAL PROMOTIONS TO THE
MENU.