ArticleCosts and profitability

Restaurant menu engineering. Which dishes should you sell?

Use dish popularity, cash contribution and kitchen operations to make better menu decisions. Menu engineering as part of a restaurant audit.

Make the menu work for the business

Your bestselling dish does not always leave the most money. The highest price does not guarantee a strong margin, and the chef’s favourite may rarely appear on a bill.

Menu engineering combines popularity with the amount remaining after ingredient cost. It provides a starting point for decisions about prices, recipes, recommendations and menu changes.

BCG matrix and menu engineering: similarities and differences

What does menu engineering show?

The basic analysis examines portions sold and contribution per portion after ingredient cost. Compare similar items: main courses with other mains, and desserts separately.

High and low refer to thresholds within the analysed category. They are not judgements of food quality or universal standards.

GroupCharacteristicsWhat to review
StarsHigh popularity and high cash contributionQuality, availability and service consistency
PlowhorsesHigh popularity, lower cash contributionCosting, price, recipe and extras
PuzzlesHigh cash contribution, low popularityDescription, price, visibility and recommendations
DogsLow popularity and low cash contributionThe item’s role and whether to change or remove it

Margin percentage is not cash contribution

Consider two fictional dishes. All amounts below exclude VAT.

Dish A has the higher percentage, but B leaves PLN 9 more per portion. This does not establish its full profitability: labour, energy, rent and other costs still need to be covered. Sales volumes and production capacity also matter.

ItemSelling priceIngredient costRemainderMargin percentage
Dish APLN 40PLN 10PLN 3075%
Dish BPLN 60PLN 21PLN 3965%

Check the data before judging the dishes

If the system recipe specifies 180 grams but the kitchen serves 220, the calculated contribution does not reflect reality. The same applies when sauce, garnish, bread or preparation losses are omitted.

Distinguish paid sales from complimentary dishes, voids and staff meals. Check availability too: a dish available for five days has not had the same opportunity as one available all month.

  • Portions sold during a defined period.
  • Actual selling prices, including discounts.
  • Current ingredient costs.
  • Recipes matching actual portions.
  • Availability and menu changes.

A popular dish may need better costing

Do not automatically raise the price of a popular dish with a low cash contribution. First check purchasing prices, recipe accuracy and portion consistency.

A costly element may offer little value to guests. Only then decide whether price, recipe or presentation should change. Damaging quality can destroy the popularity that supports sales.

A good margin may need a better explanation

Guests may not understand an unfamiliar ingredient or see why a dish costs more. Ask whether staff have tasted it, can describe it and know whom to recommend it to.

A clearer description may help; sometimes the product itself needs changing. Moving a dish around the menu cannot fix a mismatch with guest expectations.

Read: Should waiters understand menu margins?

Not every slow seller should disappear

An item may matter to groups of guests despite modest individual sales, including some plant-based options or dishes meeting particular dietary needs.

Make this a deliberate choice. Understand the item’s role, stockholding cost and operational complexity. “It has always been there” is not enough, but low volume alone is not a sufficient reason to remove it.

A spreadsheet cannot see the kitchen queue

The classic popularity and contribution model does not capture every cost or operational constraint. It needs to be complemented by observation.

A financially attractive dish may overload a station, require a unique ingredient or involve extensive last-minute preparation. In a hotel, the same kitchen may also be serving groups and preparing banquets.

  • Preparation and finishing time.
  • Workload at each station.
  • Ingredients used in only one dish.
  • Waste from short shelf lives.
  • Effects on other orders and waiting times.

How I use menu engineering in an audit

At Hospitality Pro, I use menu analysis to support practical decisions. Within the agreed audit scope, I compare sales data and costing with the way the kitchen and floor team actually work.

We identify items to support, calculations to correct and dishes that complicate service. The output should be implementation priorities, with an owner and a way to review each change.

After implementation, assess portions sold, cash contribution after ingredients, waste, service times and guest feedback, rather than average spend alone.

A good menu needs to appeal to guests, work operationally and make business sense.

Explore restaurant audits at Hospitality Pro.

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