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 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%
 A = Menu items  I = Combined menu cost of all items
 B = Number of menu item sold  J = Combined menu revenues of all items
 C (Menu mix %) = B ÷ Total # of entrées sold  K (Food cost %) = I ÷ J
 D (Food cost) = Standard cost of each item  L (Menu CM) = F · B
 E (Sales price) = Menu price of each item  M = Combined menu CM of all items
 F (Item CM) = E – D  N = Total items sold
 G (Menu cost) = D · B  O (Average contribution margin) = M ÷ N
 H (Menu revenues) = E · B
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Index of Menu Engineering Worksheet
Calculations (continued)
 P (Contribution margin rating) =
A B C D E F G H L P R S
If the item’s F > O, then the item
Entrée # Menu Food Sales Item Menu Menu Menu CM Cat. MM Cat. Class
is designated a high contribution
Sold Mix% Cost Price CM Cost Rev. CM margin rating; if the item’s F <
GS 72 12.52 $4.65 $14.45 $9.80 $334.80 $1040.40 $705.60 L L Dog
% O, it is designated a low
Steak 130 22.61 $5.35 $18.95
%
$13.60 $695.50 $2463.50 $1768.00 H H Star
contribution margin rating.
Seafood 94 16.35 $7.25 $22.50 $15.25 $681.50 $2115.00 $1433.50 H H Star  Q = (1 ÷ total number of menu
%
Tofu 154 26.78 $4.20 $14.45 $10.25 $646.80 $2225.30 $1578.50 L H PlowH items) · 0.7
%  R (Menu mix rating) = If the
Pork 125 21.74 $6.90 $16.45 $9.55 $862.50 $2056.25 $1193.75 L H PlowH
% item’s C > Q, then the item is
Total N = 100%
575 designated a high menu mix
Addtl
Calcs.
I= J= M= rating; if the item’s C < Q, then
$3220.8 $9900.45 $6679.35
Addtl. K= O= Q= it is designated a low menu mix
Calcs. $11.62 14% rating.
 S = Menu item classification

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Menu Engineering Categories

Tofu & Pork Steak & Seafood

Plowhorse Star

High Popularity High Popularity

Low Contribution Margin High Contribution Margin
GS
Dogs 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