Chapter 11 Menu Engineering Principles of Food, Beverage, and Labour Cost Controls, Canadian Edition

Learning Objectives After reading this chapter, you should be able to: 11.1 Complete a menu engineering worksheet and analyze the resulting information. 11.2 Define the terms star, dog, plowhorse, and puzzle as they relate to menu analysis. 11.3 Prepare a chart showing stars, dogs, plowhorses, and puzzles. 11.4 Describe appropriate action to take for stars, dogs, plowhorses, and puzzles when changes are made to the menu.

Menu Engineering Menu Engineering is a technique for analyzing menu sales. Provides helpful information for item evaluation relative to: Popularity Contribution to bottom-line dollars Best explained by example

Menu Engineering Worksheet

Menu Engineering Worksheet

Index of Worksheet Calculations A = Menu items B = Number of menu item sold C (Menu mix %) = B ÷ Total # 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 X B H (Menu revenues) = E X B

Index of Worksheet Calculations I = Combined menu cost of all items J = Combined menu revenues of all items K (Food cost %) = I ÷ J L (Menu CM) = F X B M = Combined menu CM of all items N = Total items sold O (Average contribution margin) = M ÷ N

Index of Worksheet Calculations P (Contribution margin rating) If the item’s F > O, 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) X 0.7 R (Menu mix rating) If the item’s C > Q, 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

Menu Engineering Categories A visual method to display item popularity and profitability.

What To Do With The Results Stars: Profitable & popular; possible to increase prices without affecting volume Dogs: Unprofitable & unpopular; remove from menu unless there is: reason for continuing to sell profitability can somehow be increased Plowhorses: Unprofitable but popular; keep but, increase CM without decreasing volume Puzzles: Profitable but unpopular; keep on menu, increase their popularity

Key Terms Average contribution margin, p. 289 Dog, p. 291 Menu contribution margin, p. 289 Menu engineering, p. 286 Menu mix percent, p. 287 Plowhorse, p. 291 Puzzle, p. 291 Star, p. 291

Chapter Web Links Silverware POS: www.silverwarepos.com Compeat: www.compeat.com

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