Menu Engineering Worksheet Explained: A step by step guide

Menu Engineering, The menu analysis technique described in this video was developed by Michael L. Kasavana and Donald I. Smith and was described in a book published in 1982. Known as menu engineering , the technique is now widely known and respected
The menu mix percent is the same as the popularity index, is calculated by dividing
the number of units sold by the total number of units sold for all items. "
contribution margin (CM) is defined as sales price minus variable cost per unit.
The menu cost for the item is simply the number sold times the individual cost,
Similarly, menu revenue for an item is the number sold times the sales price of the item
The menu contribution margin is found by multiplying the number of units sold for each menu item by its contribution margin
the average contribution margin , determined by dividing the total contribution Margin by the total number of units sold,
Item Percentages requires careful consideration. This is the percentage of an entire menu represented by each item on that menu, multiplied by 70 percent.
Some will question why 100 percent of the average rather than 70 percent is used. The authors of Menu Engineering simply stated that using 70 percent of the average makes the results more realistic.
It is possible that many foodservice operators might want to use 100 percent of the average number sold instead of 70 percent
The use of the 70 percent figure (as the original authors of Menu Engineering used) or the 100 percent figure (as many have suggested) is a matter of personal preference. Using either figure does not change the financial picture.

The entries in the contribution margin category , low and high , are made after comparing the contribution margin for each menu item with the average contribution margin for the menu .
Stars: Stars are both profitable and popular and should normally be left alone, unless there is a valid reason for change. Because of the popularity of stars, it is sometimes possible to increase their menu prices without affecting volume, thus increasing their profitability.
Plowhorses Plowhorses are popular, but relatively unprofitable. They should be kept on the menu, but attempts should be made to increase their contribution margins without decreasing volume. A possibility is to decrease standard portion size slightly while improving the appearance of the product. Another is to raise prices on such items, assuming that the volume of those items will not be adversely affected to any great extent.
Puzzles Puzzles are comparatively profitable, but relatively unpopular. They should be kept on the menu, but attempts should be made to increase their popularity without decreasing their profitability substantially. There are any number of ways to do this, including repositioning items to more favorable locations on the menu, featuring items as specials suggested to diners by servers, and changing the appearances or menu descriptions of these items to increase their appeal.
"Dogs Because dogs are both unprofitable and unpopular, they should be removed from the menu and replaced with more profitable items unless (1) there is a valid reason for continuing to sell a dog (as with an item that promotes other sales) or (2) its profitability can somehow be increased to an acceptable level.
This will require that the item be changed in some way. One way of changing
an item from a dog to a puzzle is to increase contribution margin per unit,
which may be done by increasing sales price. "
If function : I wasn't able to add it leave a comment and i will provide it
0:00 Menu Engineering
0:20 Menu Mix
1:43 Contribution Margin
2:10 Menu cost
2:32 Menu revenue
3:01 Menu contribution margin
3:40 Average contribution margin
4:15 item percentages
5:49 contribution margin category
7:30 Menu Mix category
8:55 Menu engineering categories
10:46 Menu engineering Stars
11:09 Menu engineering Plowhorses
11:53 Menu engineering Puzzles
12:35 Menu engineering Dogs


#menuengineering#restaurantmanagement#restaurantmenuanalysis