INTRODUCTION TO MENU ENGINEERING Holiday Inn Sokolniki Moscow

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Menu Engineering.ppt

Количество слайдов: 14

The Definition MENU ENGINEERING is a process designed to measure the effectiveness of your menu items. 2

Objective Use menu items categories to strategically design your menu in order to: • Maximize sales of highly profitable menu items • Minimize sales of unprofitable menu items 3

Principles Uses 2 main criteria: • Popularity • Profitability Categorizes menu items on: • Star: High profitability, high popularity • Dog: Low profitability, low popularity • Plowhorse: Low profitability, high popularity • Puzzle: High profitability, low popularity 4

Profitability – Contribution Margin PROFITABILITY is measured through the menu item’s CONTRIBUTION MARGIN Contribution margin = Selling Price – Food Cost Total Cost Margin = Item Cost margin * Total Items sold ! No direct relationship between food cost % and its contribution margin! 5

Contribution Margin Example Menu Item Food Menu Selling Food cost Contribution Cost Price % Margin Chicken Sandwich 1. 5 $ 4. 0 $ 37. 5 % 2. 5 $ Angus Burger 2. 0 $ 5. 0 $ 40. 0% 3. 0 $ Salmon Steak 3. 0 $ 7. 0 $ 42. 9 % 4. 0 $ 6

Popularity – Sales Mix POPULARITY is measured through menu item’s SALES MIX % Sales Mix % = Number of items sold / Total Items sold 7

Menu Items Categories: EXAMPLE Item Number Sold Sales mix % Food Cost Price Food cost % Contribution Margin Total Cost Total Revenue Total Cont Margin Popularity Category Profitability Category Class Pizza 100 33% 1. 2$ 4. 5$ 27% 3. 3$ 120$ 450$ 330$ H L Workhorse Sandwich 50 17% 1. 5$ 5. 0$ 30% 3. 5$ 75$ 250$ 175$ L L Dog Steak 60 20% 2. 2$ 7. 0$ 31% 4. 8$ 132$ 420$ 288$ L H Puzzle Salad 90 30% 1. 6$ 6. 0$ 27% 4. 4$ 144$ 540$ 396$ H H Star Total 300 6. 5$ 22. 5$ 16$ 471$ 1660$ 1189$ 8

Menu Items Categories: STARS High popularity and high profitable • Locate in highly visible position on menu • Maintain rigid quality, portion and presentation 9

Menu Items Categories: WORKHORSES High popularity and low profitability • Bring people in the restaurant • Price in stages: 4. 5 $, 4. 6 $, 4. 7 $ • Packages with lower cost menu items 10

Menu Items Categories: PUZZLE Low popularity and high profitability • • Take off the menu, if labor intensive Reposition in higher profile part of the menu Rename the item Slightly decrease the price 11

Menu Items Categories: DOG Low popularity and low profitability • Eliminate the item from the menu • Raise item price to achieve at least a “puzzle” • Make it special but do not list on the menu 12

Alternatives to inflationary pricing • • • Reduce Portion Size and present it differently on the plate Reduce Variety to reduce food wastage Revise Purchase specifications Reduce complimentary food items Increase productivity Improve operational controls 13