Menu engineering categorizes dishes by popularity and profitability into four groups: Stars (promote heavily), Workhorses (increase prices or reduce costs), Puzzles (improve visibility and descriptions), and Dogs (remove entirely). Analyze quarterly and focus on your top 10 sellers for maximum impact.
Picture this: you're scanning last month's sales data and notice your €28 lamb dish sold just 12 times while your €18 burger moved 180 portions. Your menu might be working against your profit margins without you realizing it. Menu engineering fixes this by categorizing every dish based on popularity and profitability, then repositioning your menu to guide diners toward your most lucrative options.
What exactly is menu engineering?
Menu engineering splits each dish on your menu into two key metrics: popularity (how frequently customers order it) and profitability (your actual earnings per plate). This analysis creates four distinct categories that reveal which dishes deserve prime menu real estate.
💡 Example:
Your bistro serves 100 covers weekly. Your ribeye steak sells 25 times (25% of guests). Your quinoa salad sells 5 times (5% of guests).
- Ribeye: popular (25%)
- Quinoa salad: unpopular (5%)
Next, you'll examine profit margins per dish to determine their final category.
The four dish categories
1. Stars (popular + profitable)
Your menu champions. Customers love them and your margins shine. Feature these prominently with photos and server recommendations.
2. Workhorses (popular + low profit)
High-volume sellers that barely move your bottom line. Reduce ingredient costs or bump prices by €1-3.
3. Puzzles (unpopular + profitable)
Hidden goldmines nobody's ordering. Improve descriptions, reposition on the menu, or train staff to suggest them.
4. Dogs (unpopular + low profit)
Menu deadweight that wastes space and ingredients. Remove them entirely.
💡 Example of categorization:
Restaurant with 200 covers weekly:
- Sirloin steak: 60x sold, €12 profit → Star
- Fish & chips: 50x sold, €4 profit → Workhorse
- Duck confit: 8x sold, €15 profit → Puzzle
- Veggie pasta: 5x sold, €3 profit → Dog
How do you calculate popularity and profitability?
Calculate popularity:
Units sold ÷ Total covers × 100
Calculate profitability:
Menu price (excl. VAT) - Raw ingredient costs = Gross profit per dish
💡 Calculation example:
Your signature steak (last month's data):
- Units sold: 120
- Total covers: 400
- Popularity: 120/400 × 100 = 30%
- Menu price: €32 incl. VAT
- Price excl. VAT: €32/1.09 = €29.36
- Ingredient costs: €9.50
- Gross profit: €29.36 - €9.50 = €19.86
Result: popular (30%) and profitable (€19.86) = STAR
What actions should you take for each category?
Stars: Position at eye level on your menu. Add appetizing photos. Train servers to mention them first.
Workhorses: Source cheaper ingredients without sacrificing quality. Test price increases of €1-2. Check if portions are oversized.
Puzzles: Rewrite descriptions with sensory language. Move to high-visibility menu spots. Have staff explain preparation methods. I've seen this mistake cost restaurants €200-400 monthly in lost revenue from dishes with excellent margins sitting unnoticed.
Dogs: Phase them out completely. They're stealing valuable menu space from potential winners.
⚠️ Heads up:
Don't eliminate all 'dogs' simultaneously. Some regulars might order them specifically. Test price increases first to see if they can become profitable.
How frequently should you analyze your menu?
Review your menu engineering quarterly. Seasonal ingredients shift costs, supplier prices fluctuate, and customer preferences evolve. Today's star could become next quarter's workhorse.
Monitor your top 10 bestsellers monthly. These dishes typically generate 80% of your food revenue, so their performance directly impacts your profitability.
How do you do menu engineering? (step by step)
Gather your numbers
Note for each dish: how many times sold (last month), selling price excl. VAT, and total ingredient costs per portion. Also the total number of covers for that month.
Calculate popularity and profit
Popularity = (number sold / total covers) × 100. Gross profit = selling price excl. VAT - ingredient costs. Make a list of all dishes with these numbers.
Categorize dishes
Popular = above average popularity of all your dishes. Profitable = above average profit of all your dishes. This gives you four categories: star, workhorse, puzzle, or dog.
Adjust your menu
Place stars prominently, make workhorses cheaper or sell them for more, promote puzzles better, consider removing dogs. Test one change at a time.
✨ Pro tip
Track your puzzle dishes' performance after repositioning them on your menu. If a high-margin item doesn't improve sales within 30 days of better placement, consider reducing the portion size and price by 20% to test customer response.
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Frequently asked questions
How do I determine if a dish counts as popular?
Calculate the average popularity across all menu items. Any dish performing above this average qualifies as popular. If your overall average is 12%, then a 15% dish is considered popular.
Should I use prices with or without VAT for calculations?
Always exclude VAT from profit calculations. Your menu shows VAT-inclusive prices, but true profit margins require the net amount. With 9% VAT, divide menu price by 1.09.
Can a 'dog' dish ever be salvaged?
Sometimes, but rarely. Try reducing the price by 15-20% or completely rewriting the description. If sales don't improve within 6 weeks, remove it permanently.
What if most of my dishes are workhorses?
Your pricing strategy needs adjustment. Either your ingredient costs are too high or menu prices too low. Audit your food costs first, then test gradual price increases of €1-2 per dish over 2-3 months.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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