How to use the menu engineering matrix calculator
- List each menu item with its menu price, its food cost per serving and the units sold in the period.
- Add more rows if the menu is longer. Up to 40 items are read.
- Open the advanced option only if you want a popularity cutoff other than the usual 70 percent of an even share.
- Read the class of each item, the weighted average margin and the counts for each class.
Formula
contribution margin = menu price - food cost
weighted average margin = total margin / total units
popular: share of units >= 70% x (1 / number of items)
high margin: item margin >= weighted average margin
Each item is judged against the rest of the menu twice: how often it sells, and how much each sale leaves after food cost. The two answers make four classes.
Six items, 670 units
The six items sold 670 units and left $6,796.00 in total margin, so the weighted average margin is $10.14. An even share of 6 items is 16.67 percent, and 70 percent of that is 11.67 percent. Burger (32.8 percent of units, $9.50 margin), Fish tacos (22.4 percent, $9.00) and Caesar salad (13.4 percent, $8.20) are popular but below $10.14, so they are Plowhorses.
Pasta primavera sells 16.4 percent with a margin of $11.80, so it is a Star. Ribeye sells only 9.0 percent but leaves $19.00, so it is a Puzzle. Soup of the day sells 6.0 percent and leaves $4.50, so it is a Dog.
What each class suggests
Stars sell well and earn well, so keep them visible. Plowhorses sell well but earn less, so a small price rise or a cheaper recipe may help. Puzzles earn well but sell less, so try better placement or a new name. Dogs sell little and earn little, so consider replacing them.
These are starting questions, not rules. A cheap soup may bring people in, and a Dog may be a menu staple.
Where the method comes from
This is the classic menu engineering method published by Kasavana and Smith in the early 1980s. The 70 percent rule of thumb for popularity and the weighted average margin are the usual conventions. The cutoff here is an editable example.
The matrix compares items with each other on one menu in one period. It does not know seasons, labor time, your goals or whether a dish is hard to make.
Assumptions and limits
- Food cost is per serving and the same for every unit sold.
- Popularity is measured against an even share of all units, using the editable 70 percent cutoff.
- Margin is price minus food cost. Labor, overhead and discounts are not subtracted.
- Only items with a sale in the period should be included.
- The default menu is an example, not a recommendation.
Frequently asked questions
Why does the matrix use 70 percent of an even share?
With many items, few reach an even share. The 70 percent factor is the common convention for deciding which items are popular. You can change it in the advanced option.
Can an item be a Star one month and a Dog the next?
Yes. Sales change with season and promotion, and the average margin moves when other items change. Compare the same period each time you run the matrix.
Should I drop all the Dogs?
Not automatically. A Dog may support other sales or serve guests with special needs. Look at why it sells poorly before removing it.
Does the order of items matter?
No. Each item is compared with the totals for the whole menu, so the order does not change the answer.