Menu Engineering

Chapter 11Menu EngineeringPrinciples of Food, Beverage, and Labor Cost Controls, Ninth EditionSample Menu Engineering WorksheetSample Menu Engineering Worksheet (continued)A = Menu itemsB = Number of menu item soldC (Menu mix %) = B ÷ Total # of entrées soldD (Food cost) = Standard cost of each itemE (Sales price) = Menu price of each itemF (Item CM) = E – DG (Menu cost) = D · BH (Menu revenues) = E · BIndex of Menu Engineering Worksheet Calculations I = Combined menu cost of all items J = Combined menu revenues of all items K (Food cost %) = I ÷ JL (Menu CM) = F · BM = Combined menu CM of all items N = Total items soldO (Average contribution margin) = M ÷ NIndex 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 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 classificationIndex of Menu Engineering Worksheet Calculations (continued)Menu Engineering Categories 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.Menu Engineering: What Should You Do with Your Results? © John Wiley & Sons, Inc. 2009