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Menu Engineering: Science Applied to Your Sales

Learn to classify your dishes into Stars, Plowhorses, Puzzles, and Dogs. A scientific methodology to maximize your restaurant's profitability.

D

Digital Menu Team

Published on March 1, 2024

Menu Engineering: Science Applied to Your Sales

Menu Engineering: Science Applied to Your Sales

Menu Engineering is a methodology developed in the 80s that classifies dishes based on two variables: Profitability (Margin) and Popularity (Volume). It is as valid today in digital as it was on paper.

The Matrix (BCG Matrix for Restaurants)

1. Stars (High Profitability, High Popularity)

The golden eggs.

  • Action: Highlight them. Keep quality consistent. Don't touch the price drastically. Use them as the image of your restaurant.

2. Plowhorses (Low Profitability, High Popularity)

Dishes that sell a lot but leave little money (e.g., simplistic burgers, bottled beer).

  • Action: Look for ways to increase margin (cheaper ingredients without losing quality, or slight price increase) or reduce portion size. Don't remove them, they bring traffic.

3. Puzzles (High Profitability, Low Popularity)

Dishes that leave a lot of money but nobody orders (e.g., a specific cocktail, an elaborate pasta).

  • Action: investigate WHY. Is it poorly described? Too expensive? Hidden in the menu? Try renaming it, changing the photo, or having waiters recommend it. If it still doesn't sell, remove it.

4. Dogs (Low Profitability, Low Popularity)

They don't sell and don't leave money.

  • Action: Remove them. They occupy inventory space and menu attention. (Exception: Children's menu or specialized dish required for a minority).

How to Apply It Digitally

  1. Export Data: Extract sales data from your POS or digital menu analytics.
  2. Calculate Costs: Have precise technical sheets for each dish.
  3. Classify: Place each dish in one of the 4 distinct quadrants.
  4. Redesign:
    • Place Stars in "Hot Spots" (top of the list).
    • Promote Puzzles with badges ("New", "Chef's Recommendation").
    • Hide or eliminate Dogs.

Conclusion

A menu is not static. You should perform this analysis every 3-6 months. With a digital menu, implementing changes is immediate, allowing you to iterate much faster towards maximum profitability.

Tags

#Menu Engineering#Profitability#Analysis#Strategy

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