Menu engineering for bar bites is about the perfect mix of popularity and profitability. Many bars serve snacks that sell well but generate little profit, while profitable items remain underexposed. In this article, you'll learn how to analyze and optimize your bar bites menu for maximum profit.
What is menu engineering for bar bites?
Menu engineering is a systematic way to analyze your menu based on two criteria: popularity (how often it's ordered) and profitability (how much you earn from it). For bar bites, this is crucial because people often order impulsively during happy hour.
You divide all snacks into four categories:
- Stars: Popular and profitable (promote!)
- Plowhorses: Popular but not profitable (raise price or lower cost)
- Puzzles: Not popular but profitable (bring more attention)
- Dogs: Not popular and not profitable (consider removing)
Calculate profitability per bar bite
For each bar bite, you first calculate the contribution margin. This is what's left after deducting ingredient costs.
💡 Example:
Bitterballs (6 pieces) for €8.50 incl. VAT:
- Selling price excl. VAT: €7.80
- Ingredient costs: €2.40
- Contribution margin: €5.40
- Margin percentage: 69%
Note: always calculate using the price excluding 9% VAT. The price on your menu includes VAT, but for analysis you use the net price.
Measure the popularity of your bar bites
You measure popularity by counting the number of sales per item over a representative period (for example, 4 weeks). Divide this by the total number of bar bite sales.
💡 Example of popularity:
Sold in 4 weeks:
- Bitterballs: 180 portions (25%)
- Nachos: 144 portions (20%)
- Carpaccio: 72 portions (10%)
- Cheese board: 36 portions (5%)
Total bar bites: 720 portions
Items above the average (720 ÷ number of items) are popular. In this example with 8 items, the average is 90 portions, so bitterballs and nachos are popular.
Place your bar bites in the four quadrants
Now combine popularity and profitability to classify each item:
- High popularity + high margin = Stars (keep and promote)
- High popularity + low margin = Plowhorses (raise price)
- Low popularity + high margin = Puzzles (make more visible)
- Low popularity + low margin = Dogs (consider removing)
⚠️ Note:
First define what 'high' and 'low' margin means for your bar. Standard for bar bites is 65-75% margin. Anything below 60% is low, above 70% is high.
Optimize your bar bites menu
Based on the classification, you adjust your menu:
For Stars (popular + profitable):
- Place prominently on the menu (at the top, in a box)
- Train staff to actively recommend these
- Consider a small price increase (demand is proven)
For Plowhorses (popular but not profitable):
- Raise the price by €0.50-€1.00
- Or lower the cost (smaller portions, cheaper ingredients)
- Place less prominently on the menu
For Puzzles (profitable but not popular):
- Move to a better spot on the menu
- Add an attractive description
- Have staff suggest these to hesitant guests
For Dogs (not popular and not profitable):
- Remove from the menu (unless there's a strategic reason)
- Or completely reformulate (different ingredients, different price)
💡 Practical optimization example:
A bar discovered that their carpaccio (€12.50) was a Puzzle: high margin (78%) but low sales. By moving it from the bottom of the menu to the 'Chef's favorites' section, sales increased by 40% without a price change.
Monitor and adjust
Menu engineering is not a one-time action. Check your numbers every 3 months and adjust as needed. Seasons, trends, and competition affect both popularity and margins.
Use a system like KitchenNmbrs to automatically calculate your margins per item and track sales figures. This makes menu engineering a routine 30-minute task per quarter instead of a multi-day Excel exercise.
How do you apply menu engineering? (step by step)
Gather sales and cost data
Note for each bar bite: number of sales over the past 4 weeks, selling price excl. VAT, and total ingredient costs per portion. This gives you the basis for all calculations.
Calculate popularity and margin percentages
Divide sales per item by total bar bite sales for popularity. Calculate (selling price - cost price) / selling price × 100 for margin percentage.
Classify into four categories
Determine what 'high' and 'low' mean for your situation. Place each item in Stars, Plowhorses, Puzzles, or Dogs based on popularity and margin.
Implement adjustments
Promote Stars, raise prices of Plowhorses, give Puzzles more visibility, and consider removing Dogs. Test changes for 4-6 weeks before optimizing further.
✨ Pro tip
Focus first on your top 5 best-selling bar bites. Once those are optimized, you've captured 80% of your profit potential. You can tackle the rest later.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I apply menu engineering to bar bites?
Check your numbers every 3 months. Bar bites are sensitive to seasons and trends, so regular monitoring is important. With major changes (new items, price adjustments), check the impact after 4-6 weeks.
What is a good margin for bar bites?
Standard for bar bites is 65-75% margin. Anything below 60% is low and costs you money. Above 75% is excellent, but make sure the price remains acceptable to guests.
Should I always remove Dogs from the menu?
Not always. Some items have strategic value (vegetarian option, kid-friendly) even if they sell poorly. But if an item has no function and costs you money, removing it makes sense.
How do I know if a price increase for Plowhorses works?
Test carefully with steps of €0.50-€1.00. Monitor for 4 weeks: if sales drop less than 15% but price increases 10%+, you win. If sales drop more than 25%, go back to the old price.
Can I do menu engineering without a POS system?
Yes, but it's a lot of work. Have staff manually track what's sold, or count what's left at the end of each shift. A POS system or app like KitchenNmbrs makes this much easier.
📚 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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