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Menu Engineering

Menu Engineering. Sample Menu Engineering Worksheet. Sample Menu Engineering Worksheet (continued). Index of Menu Engineering Worksheet Calculations. A = Menu items B = Number of menu item sold C (Menu mix %) = B ÷ Total # of entr é es sold D (Food cost) = Standard cost of each item

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Menu Engineering

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  1. Menu Engineering

  2. Sample Menu Engineering Worksheet

  3. Sample Menu Engineering Worksheet (continued)

  4. 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

  5. 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

  6. 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

  7. Menu Engineering Categories

  8. 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.

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