MENU ENGINEERING

Menu engineering is a marketing orientated approach to the evaluation of a menu with regard to its present and future content, design and pricing. Its origin are based on the famous Boston Consulting Group (BCG) portfolio technique, a matrix specifically designed to analyze individual business performance in a company with a range of different business interests. The concept of menu engineering requires food and beverage manager to orient themselves to the contribution that menu items make to the total profitability of a menu. It highlights the good and the poor performance in a menu .

OBJECTIVES
Menu engineering is a step-by-step procedure that focuses on the three main elements: Customer demand-the number of customers served; Menu mix- an analysis of customer preferences for each menu items (popularity); Contribution margin- an analysis of the contribution margin (GP%) for each menu item

Methods
Using the simple matrix menu items can be plotted, Representing their performance with regards to volume ( popularity) and cash contribution (profit).The four squares of matrix commonly have names indicating the performance of items in a particular square. 1. Stars- Menu items high in menu mix (popularity) and also high in contribution margin.

2. Plowhorses- Menu items high in menu mix (popularity) but low in contribution margin. 3. Puzzles- Menu items low in menu mix (popularity) and high in contribution margin. 4. Dogs- Menu items low in menu mix (popularity) and low in contribution margin.

High
Plowhorses-customer perception: Over period , Standard-type items Management Action: Ensure rigid specification for purchasing, recipe and presentation are strictly maintained. Locate items to a low profile position on menu. To increase contribution margin by Packaging with a high contribution item. Test small price increases.
Dogs-customer perception: Low-priced, but items dull and uninteresting Management action Try revamping item. If new menu item, spend time to check if it can be improved. Review alternative menu items. Increase the price and raise status to puzzle. Remove from menu.

Popularity (sales)

Stars- Customer perception: Restaurants prestige items price unimportant to purchase decision Management Action: Ensure rigid specifications for purchasing, recipe and presentation are strictly maintained. Feature prominently on menu. Regularly promote. Test price increases in high season

Puzzles- customer perception: Tempting but overpriced Management action Reposition and feature more prominently on menu Increase merchandising. Rename Item and change the presentation. Give the item special status.

Low Low Contribution margin

High

Menu Engineering Workbook

Advantages
The standardization of all recipes ( including the presentation), so that food cost can be accurate; The accurate sales analysis of each menu item,; daily and by meal period; The use of personal computer, so that simple spreadsheets, with standard calculation, may be done accurately and with speed.