TL;DR (Summary)

Menu engineering is the strategic process of analyzing and optimizing your restaurant’s menu to boost sales and profitability, without increasing prices. With tools like Plaza’s Menu Manager, you can easily track item performance, redesign your menu, and apply proven psychological techniques to increase revenue while keeping guests happy.

What Is Menu Engineering?

Menu engineering is a data-driven approach to designing and presenting your menu to maximize profits and guest satisfaction. It involves analyzing the sales and profit margins of each menu item, categorizing them, and then strategically placing and promoting items to influence customer choices .

Why Menu Engineering Matters

• Boosts Profitability: Focuses on selling more of your most profitable items.

• Improves Guest Experience: Makes it easier for guests to choose dishes they’ll love.

• No Need to Raise Prices: Increases average check size and profit per guest without price hikes.

• Streamlines the Process: Tools like Plaza automate menu updates, saving you time and ensuring data-driven decisions.

  
  

Step-by-Step Guide to Menu Engineering

1. Analyze Menu Item Performance

• Collect Data: Track sales and cost data for each menu item over a set period.

• Calculate Profit Margins: Subtract the cost of each item from its selling price.

• Determine Popularity: Identify which items sell the most.

Tip: Use a simple spreadsheet or restaurant POS system to gather this data.

2. Categorize Menu Items

Menu engineering uses a four-quadrant matrix to classify items:

Source: Upserve

3. Redesign Your Menu for Profitability

• Highlight Stars: Use boxes, icons, or chef’s recommendations to draw attention.

• Reposition Puzzles: Move to more visible spots or rename to increase appeal.

• Reduce Plowhorse Costs: Adjust ingredients or portion sizes to improve margins.

• Remove Dogs: Eliminate or replace underperforming items.

With Plaza’s Menu Manager, you can easily update your digital menu and test new layouts to see what works best.

4. Use Menu Psychology

• Strategic Placement: Place high-margin items in the “Golden Triangle” (top right, top left, center).

• Descriptive Language: Use vivid, sensory words to make dishes more enticing.

• Limit Choices: Too many options can overwhelm guests—focus on your best sellers.

Learn more: Toast POS - Menu Psychology

5. Test and Refine

• Monitor Sales: Track changes in item performance after menu updates.

• Gather Guest Feedback: Ask guests about new items or menu layouts.

• Iterate: Continuously refine your menu based on data and feedback.

Menu Engineering Best Practices

• Update Regularly: Review your menu at least twice a year.

• Train Staff: Ensure servers know which items to recommend.

• Use Visual Cues: Photos, icons, and highlights can guide guest choices.

• Keep It Simple: A clear, uncluttered menu is easier to navigate and more effective.

Frequently Asked Questions

Q: Can menu engineering work for small restaurants?

A: Yes! Even small cafes and bistros can benefit from analyzing sales data and optimizing their menus for profitability.

Q: Do I need special software?

A: While POS systems make data collection easier, you can start with a spreadsheet and basic sales data.

Q: How often should I update my menu?

A: At least twice a year, or whenever you notice shifts in guest preferences or ingredient costs.

Further Reading & Resources

• Menu Engineering: The Secret to Restaurant Profitability (Upserve)

• Menu Engineering 101: How to Design a Menu That Sells (TouchBistro)

• Menu Psychology: How to Design a Menu That Sells (Toast POS)

• Restaurant Menu Engineering: The Secret to More Profitable Menus (Lightspeed)

Key Takeaway:
Menu engineering is a powerful, data-driven way to increase restaurant sales and profitability, without raising prices. By analyzing item performance, optimizing menu design, leveraging psychology, and using tools like Plaza’s Menu Manager, you can guide guests toward choices that benefit both them and your bottom line.

Written by Mobal’s restaurant technology experts. For more insights, explore our Table Talk blog.