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

2. Learning Objectives
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 respond to menu item modifications necessitated by menu engineering analysis.
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

3. Menu Engineering
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition
Discuss concept of looking closer art each menu item and it’s contribution to gross profit and units sold. Why do this?

4. 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
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

5. Menu Engineering Worksheet
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

6. 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) = B X D
H (Menu revenues) = B X E
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

7. 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
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

8. 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
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

9. Menu Engineering Categories
A visual method to display item popularity and profitability.
Plowhorse
High Popularity
Low Contribution Margin
Star
High Contribution Margin
Dog
Low Popularity
Puzzle
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

10. What To Do With The Results
Stars: Profitable & popular; possible to increase prices without affecting volume
Plowhorses: Unprofitable but popular; keep but, increase CM without decreasing volume
Puzzles: Profitable but unpopular; keep on menu, increase their popularity
Dogs: Unprofitable & unpopular; remove from menu unless there is:
reason for continuing to sell
profitability can somehow be increased
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

11. Key Terms Average contribution margin, p. 287 Dog, p. 288
Menu contribution margin, p. 286
Menu engineering, p. 284
Menu mix percent, p. 285
Plowhorse, p. 288
Puzzle, p. 288
Star, p. 288
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

12. Chapter Web Links Silverware POS: www.silverwarepos.com
Compeat:
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

13. Copyright
Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.
Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition