1. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Chapter 11 Menu Engineering

2. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Sample Menu Engineering Worksheet

3. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Sample Menu Engineering Worksheet (continued)

4. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved 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. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved 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. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved 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. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Menu Engineering Categories

8. Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved 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.