Menu Engineering

MENU ENGINEERING

What is menu engineering? For businesses searching for “how is restaurant menu engineering done,” “how can a restaurant menu become more profitable,” “how is menu analysis performed,” “why is menu cost analysis important,” “which products should be removed from the menu,” or “which products should be highlighted,” menu engineering is a professional analysis system that reveals the real profit map of a restaurant.

Menu engineering is not only about making the food menu look attractive. Menu engineering examines each product on the menu through sales volume, portion cost, recipe cost, sales price, contribution margin, preparation time, kitchen workload, supply risk, waste ratio and guest demand. Without this analysis, it is not possible to know whether a restaurant menu truly generates profit.

A restaurant may be full but may not make profit if its menu is wrong. A product may sell a lot but leave a low contribution margin. Another product may sell less but provide high profit when explained and positioned correctly. Some products occupy space on the menu, tire the kitchen, create stock burden and do not create value for the business. Menu engineering shows these differences with numbers.

Under the consultancy of Chef Ahmet Özdemir, menu engineering is a professional work for creating a profitable, producible and sales-focused food menu for restaurants, a la carte restaurants, steak restaurants, seafood restaurants, cafes and coffee shops, fast food restaurants, high-class restaurants, Turkish cuisine restaurants, Ottoman cuisine concepts, Mediterranean cuisine, vegan restaurants, franchise restaurants and restaurant projects abroad.

WHY IS MENU ENGINEERING NECESSARY?

The restaurant menu is one of the most important sales tools of the business. Guests often decide what to order through the menu. According to the approach emphasized in Cornell University’s menu design and menu engineering training, the menu is not only a tool that displays products; it is also a strategic tool that must be managed to increase revenue and profitability.

The following problems are common in restaurants without menu engineering:

High-selling but low-profit products are not noticed.

Low-selling products with high profit potential are not positioned correctly.

High-cost products remain on the menu.

Unnecessary products tire the kitchen.

Products that slow down service create sales loss.

Real cost is unknown because recipes are not standardized.

Pricing is based on guesswork.

Staff do not know which products to recommend.

Guests have difficulty reading the menu.

Menu engineering gives the restaurant owner and manager clear answers to the questions: “Which product makes money, which product creates cost, which product should be protected, which product should be corrected, and which product should be removed?”

HOW IS MENU ENGINEERING DONE?

Menu engineering is done with data, not with guesses. Sales reports, recipe costs, portion weights, purchasing prices, waste ratios, preparation times and kitchen capacity must be evaluated together.

The following data is collected in a menu engineering study:

Product name

Sales volume

Sales price

Recipe cost

Portion cost

Contribution margin

Product profitability

Waste ratio

Preparation time

Cooking time

Service time

Supply ease

Stock burden

Kitchen workload

Guest demand

Menu interpretation without this data remains incomplete. General comments such as “this product is liked,” “this product is expensive,” or “this product does not sell” are not enough. Menu engineering evaluates products according to sales and profitability data, not according to emotion.

SALES VOLUME AND CONTRIBUTION MARGIN

Two basic data points are very important in menu engineering: sales volume and contribution margin. Sales volume shows how much a product is preferred by guests. Contribution margin shows the gross earning left to the business after recipe cost is deducted from the sales price.

Contribution margin can be considered as follows:

Sales price - product cost = contribution margin

However, in professional analysis, looking only at product cost is not enough. Preparation time, staff labor, waste, energy use, stock burden, service speed and the strategic value of the product on the menu must also be evaluated. Academic studies combining Activity-Based Costing with menu engineering show that not only ingredient cost but also operational activity costs should be considered to read product profitability more accurately.

MENU ENGINEERING MATRIX

The menu engineering matrix classifies products according to sales power and profitability. In the international approach, products are generally examined in four groups:

Stars

These are high-selling and high-profit products. They must be protected, kept visible, recipe standards must not be broken, and they must be strongly recommended by service staff.

Workhorse Products

These are high-selling but low-profit products. Portion, recipe, garnish, price or cost must be re-evaluated. Before removing them completely, their profit structure should be corrected.

Hidden Value Products

These are low-selling products with high profit potential. Their name, description, menu position, explanation by service staff and presentation language must be strengthened. The problem is often not the product itself, but how it is presented.

Weak Products

These are low-selling and low-profit products. They occupy space on the menu, create stock burden, tire the kitchen and do not contribute to the business. If there is no strategic reason, they should be removed from the menu or completely redesigned.

This classification allows the restaurant to manage its menu with data-based decisions instead of emotional decisions.

HOW SHOULD STAR PRODUCTS BE MANAGED?

Star products are the strongest products of the restaurant in terms of both sales and profit. Guests like these products and they create strong earnings for the business. However, if the strength of star products is not protected, standards may weaken over time.

The following points must be considered for star products:

Recipe standard must be protected.

Portion weight must not change.

Product quality must not be reduced.

The product must remain visible on the menu.

Service staff must explain the product correctly.

Stock and supply must be secured.

Price updates must be made carefully.

Star products carry the signature power of the restaurant. These products are not only sales items; they are brand value.

HIGH-SELLING BUT LOW-PROFIT PRODUCTS

Some products sell very well but do not leave the expected profit for the business. These products may be dangerous for the restaurant. Since sales look high, they may be considered successful; however, if cost is high, portion is large, waste is excessive or sales price is low, the restaurant may not make money.

The following work can be done for these products:

The recipe is recalculated.

Portion weight is checked.

Garnish and sauce cost is examined.

Sales price is updated.

Side product sales are added.

Supplier price is renegotiated.

Production time is shortened.

Waste ratio is reduced.

The aim is not to remove the product immediately, but to make it profitable. A high-selling product can become a strong earning tool with correct engineering.

LOW-SELLING PRODUCTS WITH HIGH PROFIT POTENTIAL

Some products on the menu leave high profit but do not sell enough. These products often perform poorly because they are not explained correctly, are positioned incorrectly or are not understood by guests.

The following steps can be applied for these products:

The product name is strengthened.

The description is written in a more appetizing way.

Its position on the menu is changed.

Service staff are trained to explain the product.

Presentation language is improved.

Side product or beverage pairing is created.

Trial sales are followed.

When hidden value products are positioned correctly, the profit ratio of the restaurant can increase significantly.

SHOULD WEAK PRODUCTS BE REMOVED FROM THE MENU?

Low-selling and low-profit products may exist on every menu. However, if these products are not controlled for a long time, they tire the kitchen, create stock burden, cause supply complexity and increase the number of products staff must learn.

The following questions must first be asked for weak products:

Is this product strategic for the brand?

Does the guest specifically expect this product?

Does the product support the sale of another product?

Does the product carry special concept value?

Can the product be saved with recipe or presentation changes?

If the answer to these questions is negative, the product should be removed from the menu or redesigned. Every product that creates crowding on the menu puts pressure on the kitchen and cost structure.

MENU ENGINEERING AND RECIPE STANDARDIZATION

Menu engineering cannot be done without recipe standardization. The contribution margin cannot be calculated without knowing the real cost of the product. If the same product is prepared with different weights, and the same plate leaves the kitchen with different costs, menu engineering data will not be reliable.

A standard recipe must include the following information:

Product name

Gross weight

Net weight

Ingredients used

Preparation method

Cooking method

Portion size

Presentation style

Waste ratio

Recipe cost

Sales price

Allergen information

Storage condition

Service note

The logic of portion, purchasing quantity and yield calculation found in sources such as the USDA Food Buying Guide is also essential in menu engineering. It must be known how much of the purchased product becomes usable, how many portions are produced after cooking or preparation, and what the real cost of one portion is.

MENU ENGINEERING AND MENU DESIGN

Menu engineering is not only a kitchen and cost study. Menu design is also an important part of this process. Guests decide according to what they see first on the menu, which product is explained more clearly and which product is presented in a more appetizing way.

The following topics are important in menu design:

Product categories

Product order

Product descriptions

Price placement

Visibility of profitable products

Highlighting signature products

Readability

Brand language

Ease of guest decision-making

Menu design should not be based only on visual appearance. The design must correctly highlight profitable and strong products. Otherwise, the products that can generate the most profit may disappear inside the menu.

MENU ENGINEERING AND SERVICE STAFF

Menu engineering is not only the work of the kitchen or management. Service staff are an important part of this system. They are the team that explains the menu to guests, makes recommendations, highlights signature products and affects the purchasing decision.

Service staff must know the following topics:

Signature products on the menu

High-profit products

Products to recommend to guests

Product ingredients

Allergen information

Cooking and presentation features

Food and beverage pairings

Daily recommendations

Product stories

If service staff do not know the menu, menu engineering remains incomplete. With proper training, the service team becomes not only an order-taking team, but a professional team that increases the sales power of the restaurant.

MENU ENGINEERING AND KITCHEN CAPACITY

A product may be profitable, but if it slows down the kitchen, it must be evaluated carefully. Menu engineering does not only look at the financial contribution of the product; it also considers the burden of the product on the kitchen. Products that take a long time to prepare, block the cooking line, slow down service during peak hours or require too much staff labor may look profitable but strain the operation.

For this reason, the following questions must be asked in menu engineering:

How much time does the product take in the kitchen?

Can it be produced during peak service?

Does it unnecessarily occupy preparation areas?

Does it create a bottleneck on the cooking line?

Does it slow down the service pass?

Can staff produce it with standard quality?

Does the product create waste?

A profitable menu does not consist only of high-priced products. A profitable menu consists of products the kitchen can produce, the service team can explain, guests prefer and the business truly benefits from.

WHICH RESTAURANTS NEED MENU ENGINEERING?

Menu engineering is necessary for businesses and investors with the following searches:

My restaurant menu does not make money.

I want menu cost analysis.

I want menu engineering consulting.

I want to renew my restaurant menu.

I want to simplify my food menu.

I want a profitable restaurant menu prepared.

I do not know which products should remain on the menu.

I want to learn which products generate profit.

I want a steak restaurant menu analyzed.

I want to renew a seafood restaurant menu.

I want to plan a cafe menu.

I want to develop a fast food restaurant menu.

I want to create a high-class restaurant menu.

I want a Turkish cuisine restaurant menu prepared.

I want a restaurant menu prepared abroad.

Each of these searches requires different data, different analysis and different strategy. Menu engineering must be established from the beginning in newly opened restaurants and repeated periodically in existing restaurants.

MENU ENGINEERING IN EXISTING RESTAURANTS

In existing restaurants, menu engineering shows the real performance of the business. If there are sales but no profit, if the menu is too wide but the kitchen is strained, if some products sell a lot but leave no money, or if some products sell less but carry strong potential, menu engineering must be done.

The following work can be applied in existing restaurants:

Reviewing sales reports

Calculating recipe costs

Checking portion weights

Classifying products according to sales and profit

Identifying weak products

Highlighting profitable products

Updating menu prices

Rewriting product descriptions

Training service staff for sales

Simplifying the menu

Correct menu engineering increases the profit of the existing restaurant, reduces kitchen burden, makes staff training easier and helps guests understand the menu more easily.

MENU ENGINEERING CONSULTING

Menu engineering consulting analyzes the restaurant’s food menu based on data. It determines which product earns money, which product causes loss, which product slows down service, which product creates stock burden and which product strengthens brand value.

Under the consultancy of Chef Ahmet Özdemir, menu engineering is handled together with restaurant setup, food menu consulting, recipe standardization, cost control, kitchen setup, staff training, service strategy, quality management and operation setup. Thus, the menu becomes a working system not only on paper, but also in the kitchen, in service and in sales.

This consulting service is a strong decision tool for investors who want to open a new restaurant, businesses that want to grow their existing restaurant, those who want to recover a struggling restaurant, brands that want to renew their menu and entrepreneurs who want to open a restaurant abroad.

CONCLUSION: MENU ENGINEERING SHOWS THE PROFIT OF THE RESTAURANT

Menu engineering is the analysis of each product on the restaurant menu through sales volume, contribution margin, recipe cost, portion cost, kitchen workload, supply risk, service speed and guest demand. This work shows which products the restaurant earns from, which products create loss and which products carry future growth opportunities.

For an investor who wants to open a restaurant, menu engineering must be established from the beginning. For existing restaurants, menu engineering must be carried out periodically, and sales and cost data must be monitored regularly. Because the profit of a restaurant is often hidden not only in the cash report, but in the real performance of the products on the menu.

Chef Ahmet Özdemir provides consulting services in menu engineering, menu planning, food menu consulting, menu cost analysis, recipe standardization, restaurant setup, kitchen setup, staff training and operation setup in Turkey and in different countries around the world as an international restaurant consultant and kitchen consultant.

Correctly applied menu engineering turns the restaurant menu from a random page of products into a professional management tool that sells, protects cost, guides guests, relaxes the kitchen and creates real profit for the business.

Chef Ahmet ÖZDEMİR

International Restaurant Consultant

International Kitchen Consultant

International Hotel Kitchen Consultant

** All rights reserved ©. This article may not be copied, reproduced or published on another website without the written permission of Chef Ahmet ÖZDEMİR. It may be used in academic studies with proper citation.

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