What is the first step in menu engineering?

1 Define your goals

The first step in menu engineering is to define your goals and objectives for your menu. What do you want to achieve with your menu engineering? Do you want to increase your sales, reduce your costs, improve your quality, enhance your image, or attract new customers? Your goals will guide your menu engineering decisions and help you measure your results. You should also consider your target market, your concept, your theme, and your competitive advantage when defining your goals.

2 Collect your data

The next step in menu engineering is to collect data and information about your menu items, such as the selling price, food cost, contribution margin (the difference between the selling price and the food cost), number of units sold, and percentage of sales. To do this, you can use your point-of-sale system, inventory records, receipts, or sales reports. The data should be collected for a specific period of time - such as a week, month, or season - depending on your menu cycle and frequency.

3 Calculate your metrics

The third step in menu engineering is to calculate your metrics and indicators for each menu item, such as the food cost percentage (the food cost divided by the selling price), the popularity index (the percentage of sales divided by the number of menu items), and the menu engineering matrix (a classification of menu items based on their popularity and profitability into four categories: stars, plowhorses, puzzles, and dogs). To do this, you can use a spreadsheet, a calculator, or a menu engineering software. Additionally, you should compare your metrics with your industry benchmarks and standards to evaluate your performance.

4 Analyze your results

Analyzing the results of your menu engineering is the fourth step, and it requires you to consider the profitability, popularity, positioning, pricing, and quality of your menu items. You should also look for patterns, trends, or anomalies in your data that can help you identify opportunities or challenges. Profitability will tell you how much profit each item generates for your business. Popularity will indicate how often they sell and how much demand they have. Positioning will show you how they are placed and presented on the menu. Pricing will compare them to your competitors. Finally, quality will tell you how they are prepared and delivered to customers.

5 Implement your strategies

The fifth step in menu engineering is to implement your strategies and actions to improve your menu items and achieve your goals. For stars, which are your most profitable and popular items, you should promote them, highlight them, and keep them on the menu. You can also increase their prices slightly or offer them in different sizes or variations. Plowhorses, which are high-volume yet low-profit items, can have their portion sizes reduced, food costs lowered, or prices moderately increased. Alternatively, you can reposition them, rename them, or change their ingredients or presentation to make them more appealing. Puzzles, low-volume yet high-profit items, should be made more popular and exposed more through testing, marketing, or bundling with other menu items. Finally, dogs - low-volume and low-profit - should be eliminated, replaced, or redesigned to make them more profitable or popular. They could also be used as loss leaders, specials, or incentives to generate more sales or traffic.

6 Monitor your outcomes

The sixth and final step in menu engineering is to monitor your outcomes and evaluate your menu engineering effectiveness. You should track the sales volume and revenue, food cost and contribution margin, customer satisfaction and feedback, and the menu engineering matrix and category of each menu item. Additionally, compare your outcomes with your goals and objectives, as well as with previous data and metrics. Afterward, review the menu engineering process to identify any areas for improvement or adjustment. To conclude, menu engineering is a continuous process that requires constant attention and adaptation. By following these steps, you can start your menu engineering journey and improve your culinary management skills and profitability.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?