Menu engineering is a method of analysis that classifies your dishes according to two axes: popularity (sales volume) and profitability (margin per dish). The intersection of these two axes creates 4 categories.
Stars (high popularity + high profitability): your profitable bestsellers. Highlight them, don’t change anything. They are your pillars.
Cash Cows (high popularity + low profitability): they sell well but don’t generate enough profit. Slightly increase the price, reduce the portion sizes or optimize the ingredients to improve the margin.
Puzzles (low popularity + high profitability): they are profitable but don’t sell. Improve their visibility: better photos, better menu position, more attractive name.
(Dogs (low popularity + low profitability): they don’t sell and don’t generate any revenue. Eliminate them or completely reformulate them. They are weighing down your menu without benefit.)
To apply this method, you need two data points per dish: the number of sales over 30 days and the unit margin (selling price - food cost). A simple spreadsheet is sufficient.
Review your quarterly matrix. Trends evolve: a star from yesterday can become a dog if tastes change or if a competitor offers something better.
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