Menu engineering focuses on two elements: demand and margin contribution. With it, you can easily visualize popularity vs. profitability to get an accurate picture of each menu item’s success. Based on this data, you can seize menu opportunities, for example, promoting menu items that are high in margins but low in sales. Download this prep list now to see how to profitably price and design your menu no matter what direction food costs go.
“Once you’ve determined an item’s cost and price, evaluate a menu item’s profitability based on the contribution margin. The contribution margin is the menu price minus the cost. Menu engineering then focuses on maximizing the average contribution margin of each guest’s order…”
Page 3 | How to perform a menu analysis