How to engineer a menu

Every item is popular or not, and profitable or not. Those four combinations need four different responses.

Menu engineering sorts items by how often they sell and how much they contribute. It applies to any list of things sold alongside each other, not only restaurants.

Step-by-step

1. Enter each item with its price, cost and units sold.
2. Read the classification.
3. Act according to the group.

The four groups

Popular and profitable. Your best items. Protect them — keep quality consistent, keep them prominent, and do not fiddle with the price. Most menus hide these somewhere unremarkable.

Popular but not profitable. The interesting group. People want them and you barely make money. Raise the price a little, reduce the cost, or reduce the portion. A small price rise on a popular item is the single most effective change available, because volume is already there.

Profitable but not popular. Good margin, few sales. A presentation problem: reposition on the menu, describe them better, have staff recommend them. Often these move with nothing more than a better description.

Neither. Candidates for removal. They occupy menu space, add stock lines and complicate the kitchen. Remove them unless they serve a purpose — a vegetarian option or a children's dish may earn its place by allowing a group to choose your venue at all.

Use contribution, not margin percentage

A high-percentage-margin item selling at a low price may contribute less cash than a lower-percentage item at a high price. You bank pounds, not percentages, so rank by contribution per item sold.

Position matters

People read menus in predictable patterns and the top of a section gets disproportionate attention. Putting your best items where eyes land is free and it works.

Frequently asked questions

Should I rank by margin percentage or cash contribution?

Cash contribution. A high percentage margin on a cheap item can contribute less than a lower percentage on an expensive one, and you bank cash rather than percentages.

What do I do with a popular but unprofitable item?

Raise the price modestly or reduce the cost. Volume is already established, so a small price increase on a popular item is usually the most effective change you can make.

Should I remove unpopular items?

Usually, unless they serve a purpose such as covering a dietary requirement that lets a whole group choose you. Every item carries stock, waste and kitchen complexity.