Menu engineering is the systematic analysis of a menu along two dimensions: popularity (sales volume) and profitability (contribution margin) of each dish. The result is a four-quadrant matrix delivering a clear recommendation for every item — from "feature prominently" to "remove from the menu". The goal is not more revenue, but more total contribution margin per guest.
| Category | Profile | Recommendation |
|---|---|---|
| ⭐ Star | popular + high CM | Feature prominently, protect quality, test the price carefully — your flagship. |
| 🐎 Plowhorse | popular + low CM | Lift the margin: optimise cost of goods, adjust portion/sides, raise the price moderately. |
| 🧩 Puzzle | unpopular + high CM | Increase visibility: better placement, active recommendation by staff, rename/redescribe. |
| 🐕 Dog | unpopular + low CM | Remove or completely rethink — blocks menu, kitchen and stock. |
Compare a dish with the average of its menu category (same period — e.g. main courses).
Simplified classification (threshold = category average). Classic menu engineering sets the popularity threshold at 70% of the expected share — for everyday use the average comparison is sufficient.
Quarterly is a good rhythm — plus after every menu change and when purchase prices shift significantly. With clean POS data the evaluation takes only a few hours.
Yes, especially rewarding: beverages have high CM ratios and large volume effects. Analyse separately by category (wines by the glass, cocktails, soft drinks).
Typically 3–8% more total contribution margin just from placement, re-costing plowhorses and removing dogs — without a single additional guest.