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Chapter 11
Menu Engineering
Principles of Food, Beverage, and Labour Cost Controls,
Second Canadian Edition
• 11.1 Complete a menu engineering worksheet and
analyze the resulting information.
• 11.2 Define the terms star, dog, plowhorse, and puzzle as
they relate to menu analysis.
• 11.3 Prepare a chart showing stars, dogs, plowhorses,
and puzzles.
• 11.4 Describe appropriate action to respond to menu
item modifications necessitated by menu engineering
analysis.
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Learning Objectives
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Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Menu Engineering
3
Menu Engineering
• Menu Engineering is a technique for analyzing
• Provides helpful information for item evaluation
relative to:
• Popularity
• Contribution to bottom-line dollars
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
menu sales.
• Best explained by example
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Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Menu Engineering Worksheet
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Index of Worksheet Calculations
• A = Menu items
• B = Number of menu item 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) = B X D
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• C (Menu mix %) = B ÷ Total # entrées sold
• H (Menu revenues) = B X E
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Index of Worksheet Calculations
• I = Combined menu cost of all items
• J = Combined menu revenues of all items
• L (Menu CM) = F X B
• M = Combined menu CM of all items
• N = Total items sold
• O (Average contribution margin) = M ÷ N
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• K (Food cost %) = I ÷ J
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Index of Worksheet Calculations
If the item’s F > O, 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) X 0.7
R (Menu mix rating)
If the item’s C > Q, 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
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
P (Contribution margin rating)
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Menu Engineering Categories
Plowhorse
Star
High Popularity
Low Contribution Margin
High Popularity
High Contribution Margin
Dog
Puzzle
Low Contribution Margin
Low Popularity
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
A visual method to display item popularity
and profitability.
High Contribution Margin
Low Popularity
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What To Do With The Results
• Stars: Profitable & popular; possible to increase
prices without affecting volume
• Puzzles: Profitable but unpopular; keep on menu,
increase their popularity
• Dogs: Unprofitable & unpopular; remove from menu
unless there is:
• reason for continuing to sell
• profitability can somehow be increased
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Plowhorses: Unprofitable but popular; keep but,
increase CM without decreasing volume
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Average contribution margin, p. 287
Dog, p. 288
Menu contribution margin, p. 286
Menu engineering, p. 284
Menu mix percent, p. 285
Plowhorse, p. 288
Puzzle, p. 288
Star, p. 288
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Key Terms
11
Chapter Web Links
• Silverware POS: www.silverwarepos.com
Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
• Compeat: www.compeat.com
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Principles of Food, Beverage,
and Labour Cost Controls,
Second Canadian Edition
Copyright
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