Menu engineering for catering works like conducting an orchestra – you need to know which dishes perform in harmony with your profits and which ones are playing off-key. By analyzing both popularity and profitability, you'll spot exactly which items deserve the spotlight and which need to exit stage left.
What is menu engineering for catering?
Menu engineering categorizes your menu items using two key metrics: how popular they are and how much profit they generate. With catering, you're often locked into fixed packages, making this analysis crucial for maximizing every event's profitability.
💡 Example:
You have 4 main courses in your catering package:
- Salmon: 40% of orders, €8.50 cost price
- Chicken: 35% of orders, €6.20 cost price
- Vegetarian: 15% of orders, €5.80 cost price
- Beef: 10% of orders, €12.30 cost price
Selling price per person: €24.50 excl. VAT
Determining the four categories
Menu engineering sorts your dishes into four distinct quadrants:
- Stars: Popular and profitable
- Plowhorses: Popular but not profitable
- Puzzles: Not popular but profitable
- Dogs: Not popular and not profitable
Calculating profitability per dish
For each dish, calculate the contribution margin:
Contribution margin = Selling price - Cost price
💡 Calculation:
At €24.50 selling price per person:
- Salmon: €24.50 - €8.50 = €16.00 margin
- Chicken: €24.50 - €6.20 = €18.30 margin
- Vegetarian: €24.50 - €5.80 = €18.70 margin
- Beef: €24.50 - €12.30 = €12.20 margin
Popularity vs. profitability matrix
Now you'll place each dish in its proper category. The average determines where you draw the line between 'popular' and 'unpopular', plus between 'profitable' and 'unprofitable'.
⚠️ Note:
With catering, count individual people who choose each dish, not total events sold. A wedding with 100 guests where 40 pick salmon equals 40 'sales'.
Calculating margin impact
Calculate total margin impact by multiplying sales volume by each dish's contribution margin:
Margin impact = Number of sales × Contribution margin
This calculation reveals something you only learn after closing your first month at a loss – that high-volume dishes with thin margins often hurt more than help your bottom line.
💡 Example calculation:
With 100 events per year averaging 50 people:
- Salmon: 2,000 portions × €16.00 = €32,000
- Chicken: 1,750 portions × €18.30 = €32,025
- Vegetarian: 750 portions × €18.70 = €14,025
- Beef: 500 portions × €12.20 = €6,100
Total margin: €84,150
Actions per category
Based on categorization, you'll take specific actions:
- Stars: Actively promote these dishes
- Plowhorses: Reduce cost price or increase price
- Puzzles: Try to increase popularity
- Dogs: Replace with better alternatives
Digital support
Menu engineering becomes simpler with systems that automatically track cost prices and analyze sales data. Tools like KitchenNmbrs can automate these calculations and reveal trends in your menu performance over time.
How do you calculate the margin impact of menu engineering? (step by step)
Gather data per dish
Note for each dish: cost price per portion, selling price per portion, and number of times sold in a specific period (for example, per month or per quarter).
Calculate contribution margin per dish
Subtract the cost price from the selling price (excl. VAT). This gives you the contribution margin per portion for each dish.
Determine popularity and profitability
Calculate the average number of sales and the average contribution margin. Dishes above average are 'popular' or 'profitable'.
Categorize your dishes
Place each dish in one of the four quadrants: Stars, Plowhorses, Puzzles, or Dogs, based on their popularity and profitability.
Calculate total margin impact
For each dish, multiply the number of sales by the contribution margin. Add up all amounts for your total margin impact.
✨ Pro tip
Run this analysis on your last 6 months of catering data, focusing specifically on events with 75+ guests. These larger events reveal true popularity patterns and generate enough volume to make meaningful menu changes worthwhile.
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 perform menu engineering analysis for catering?
Every quarter works well for most catering operations, unless you're constantly adding new dishes. Since catering menus change less frequently than restaurant menus, your data stays relevant longer.
Should I include side dishes and beverages in my analysis?
Absolutely, especially if customers can select these items separately. For fixed packages, you can group them together, but track which components most significantly impact your cost structure.
How do I handle seasonal dishes in menu engineering?
Analyze only the active period for seasonal items. Compare against the same timeframe from previous years, or collect a full season's worth of data before drawing conclusions.
What's the approach for different package price points?
Calculate a weighted average selling price per dish across all package types, factoring in the sales volume for each package level.
What contribution margin should I target for catering?
Aim for 60-75% contribution margins in catering. You'll have lower fixed costs than restaurants but higher variable expenses for transport, setup, and service staff.
How do I account for last-minute guest count changes?
Track actual served portions rather than initial estimates. Last-minute additions or cancellations can skew your popularity data if you're not measuring what actually went out the door.
Should I analyze corporate vs. social events separately?
Yes, these markets often have different preferences and price sensitivities. Corporate events might favor safer, familiar options while social events allow for more adventurous choices.
📚 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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