Menu Engineering 101: Pricing Dishes People Actually Want
The idea
Menu engineering is a simple way to look at your menu: for each dish, ask how popular it is and how much margin it earns per portion. Together those two answers tell you what to do with the dish.
The matrix
Classify each dish by popularity (share of units sold) and margin per portion (price minus ingredient cost).
| High margin | Low margin | |
|---|---|---|
| Popular | Star: protect and promote | Plowhorse: raise price slightly or trim portion or cost |
| Unpopular | Puzzle: reposition or rename | Dog: rework or remove |
The steps
- Export sales by dish for a period, ideally a full month.
- Compute the margin per portion for each dish.
- Compare with the menu averages and place each dish in the grid.
- Change one thing at a time and watch the results for a few weeks.
A worked example (illustrative)
A menu of four dishes, one month of sales.
| Dish | Sold | Margin per portion | Total margin |
|---|---|---|---|
| A | 120 | €9.50 | €1,140 |
| B | 150 | €5.00 | €750 |
| C | 40 | €11.00 | €440 |
| D | 30 | €4.00 | €120 |
| Total | 340 | €2,450 |
Average margin per portion across all sales: 2,450 ÷ 340 = €7.21. Popularity threshold: with four dishes, an even share would be 25%, or 85 portions. Use this as a simple line (some methods use 70% of that share).
- A sells 120 (35%) at €9.50: popular and above average margin, a star.
- B sells 150 (44%) at €5.00: popular but below average margin, a plowhorse.
- C sells 40 (12%) at €11.00: unpopular but high margin, a puzzle.
- D sells 30 (9%) at €4.00: unpopular and low margin, a dog.
What to do with each group
Stars (A). They earn 1,140 ÷ 2,450 = 47% of the margin. Keep quality and consistency, give them a good place on the menu and do not discount.
Plowhorses (B). Guests love them and they earn little. B brings in 750 ÷ 2,450 = 31% of the margin. A small price rise of €0.50 on 150 portions adds 0.50 × 150 = €75 a month, about 3% more margin, if sales hold. Or trim the cost of the plate slightly. Do not change it so much that the dish loses its appeal.
Puzzles (C). These earn well and sell little. Try a better position, a clearer description, a new name, or a suggestion from the waiter. If it still does not move, ask whether guests simply do not want it.
Dogs (D). Rework the recipe, change the price or remove the dish. Removing a dish also simplifies the kitchen.
Cautions
- A matrix is a prompt, not a verdict. A "dog" may be there for a reason, such as dietary needs.
- Targets such as 28–32% food cost are common starting points, not rules.
- Change one thing at a time, so you can tell what caused the result.
- Dishes interact: removing one can shift guests to others.
Takeaway
Know which dishes you should push, price up, rename or retire. Start with a month of data and four categories.