Picture this: your bestselling indoor pasta dish sits untouched on terrace tables while guests gravitate toward light salads and cold appetizers. Terrace diners behave completely differently - they crave lighter fare, order more drinks, and scrutinize prices under bright sunlight. Your indoor menu engineering strategy won't work here.
Why terrace menus require different menu engineering
Terrace guests don't eat like indoor diners. They prefer lighter options, consume more beverages, and spend extra time browsing your menu. So you'll need to reposition your high-performing and profitable items specifically for outdoor dining.
💡 Example terrace behavior:
Indoors, 60% order a main course + appetizer. On the terrace:
- 40% order only a main course
- 30% choose appetizers + drinks
- 25% opt for salad or light lunch
Result: different profitability per table
The 4 quadrants for your terrace menu
Menu engineering relies on 4 dish categories. But you'll analyze these differently for terrace versus indoor menus:
- Stars: Popular + profitable on terrace (promote these!)
- Plowhorses: Popular but thin margins (increase prices or tweak ingredients)
- Puzzles: High margins but poor sales (improve positioning)
- Dogs: Unpopular + low margins (cut from terrace menu)
⚠️ Note:
A dish can be a 'Star' indoors and a 'Dog' on the terrace. Analyze them separately!
Calculate popularity and profitability for your terrace
Effective menu engineering demands two key metrics per dish:
Terrace popularity:
Popularity % = (Number sold on terrace / Total terrace covers) × 100
💡 Example popularity:
Last month on terrace:
- Caesar salad: sold 45 times
- Total terrace covers: 300
- Popularity: (45/300) × 100 = 15%
Above 10% = popular for a terrace dish
Profitability per dish:
Gross profit per dish = Selling price excl. VAT - Ingredient costs
One of the most common blind spots in kitchen management is assuming terrace profitability mirrors indoor performance. You need separate calculations.
Optimize terrace menu per quadrant
Stars (popular + profitable):
- Feature prominently on your menu
- Add photos or special callouts
- Consider modest price increases
Plowhorses (popular + low margin):
- Swap ingredients for cost-effective alternatives
- Trim portion sizes slightly
- Bump prices by €1-2
💡 Example Plowhorse optimization:
Popular club sandwich with low margin:
- Was: turkey fillet (€3.20/100g)
- Becomes: chicken fillet (€2.40/100g)
- Savings: €0.80 per sandwich
At 40 sales/month = €32 extra profit
Puzzles (low sales + high margin):
- Write more appealing menu descriptions
- Pair with popular items ("Perfect with a glass of wine")
- Train staff to actively suggest these dishes
Dogs (low sales + low margin):
- Drop from terrace menu entirely
- Keep exclusively on indoor menu
- Replace with higher-performing options
Terrace menu layout for better sales
Menu positioning directly impacts sales. For terrace menus, try this layout:
- Top right corner: Your strongest 'Star' dish
- Separate box: "Terrace favorite" or "Chef's choice"
- Grouping: Light dishes at top, heavier options below
- Price anchors: Most expensive dish makes others appear reasonable
⚠️ Note:
Test your terrace menu for at least 4 weeks before drawing final conclusions. Weather and season affect sales.
Seasonal menu engineering
Your terrace menu performance shifts with seasons. Adjust your menu engineering strategy accordingly:
Spring/summer:
- Salads and chilled dishes outperform
- Higher beverage sales per table
- Guests linger longer
Fall/winter (heated terraces):
- Soups and warm dishes gain traction
- Lower drink sales
- Shorter table turns
Measure your results
Monitor these metrics to gauge your menu engineering success:
- Average check value terrace (should climb)
- Food cost % terrace menu (should drop)
- Sales per m² terrace (efficiency metric)
- Sales of top 5 dishes (should shift toward Stars)
💡 Example results measurement:
After menu engineering optimization:
- Average check: from €18.50 to €21.20
- Food cost terrace: from 34% to 29%
- Sales of best dish: +40%
Result: €2,400 extra profit per month
How do you apply menu engineering to your terrace menu? (step by step)
Analyze 4 weeks of terrace sales
Collect data from your terrace sales: which dishes were ordered how often, and what was the revenue per dish. Count only the covers that actually sat on the terrace.
Calculate popularity and profitability per dish
Popularity = (number sold / total terrace covers) × 100. Profitability = selling price excl. VAT minus ingredient costs. Create a list of all terrace dishes with both figures.
Divide dishes according to the 4 quadrants
Stars = popular and profitable (promote). Plowhorses = popular but low margin (optimize). Puzzles = high margin but low sales (position better). Dogs = unpopular and low margin (remove).
Optimize each quadrant
Place Stars prominently on menu. Use cheaper ingredients for Plowhorses or raise price. Describe Puzzles better and recommend actively. Remove Dogs from terrace menu and replace with better alternatives.
Test and measure results after 4 weeks
Monitor average check value, food cost percentage, and sales of your top dishes. Adjust where needed and repeat the analysis each season, as terrace behavior changes with the weather.
✨ Pro tip
Track your top 3 terrace dishes weekly for 6 weeks, then feature the highest-margin winner in a highlighted menu box. This simple repositioning typically boosts that dish's sales by 35% within the first month.
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
Should I use separate prices for my terrace menu?
Not necessarily, but you can select different dishes. Guests often accept higher prices for the terrace atmosphere, but make sure your food cost is correct.
How often should I update my terrace menu engineering?
At least per season, because terrace behavior changes with the weather. In spring, guests want different dishes than in fall.
What if a dish is popular indoors but not on the terrace?
Treat them as separate menus. A stew can be a 'Star' indoors and a 'Dog' on the terrace. Adjust your terrace menu accordingly.
📚 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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