I'll admit it: most restaurant owners place dishes on their menu based purely on gut feeling. But menu engineering changed everything when Michael Kasavana and Donald Smith developed it at Michigan State University in 1982. Their systematic approach reveals exactly which dishes drive profits and which ones drain your bottom line.
The origins of menu engineering
Menu engineering emerged from research into hospitality management at Michigan State University. Michael Kasavana and Donald Smith published their groundbreaking work in 1982 on how restaurants can optimize their menu for maximum profit.
Before that time, restaurants chose their dishes mainly based on what they thought tasted good or what was popular. Kasavana and Smith proved that you can make much more money by systematically looking at two factors:
- Popularity: How often is a dish ordered?
- Profitability: How much do you earn per portion?
The four categories of menu engineering
The system divides all dishes into four quadrants:
💡 The four quadrants:
- Stars: Popular + profitable (promote these!)
- Plowhorses: Popular but not profitable (raise the price)
- Puzzles: Profitable but not popular (promote better)
- Dogs: Not popular + not profitable (remove them)
Why menu engineering is still relevant today
More than 40 years later, restaurants worldwide still use this method. The reason is simple: it works. By strategically organizing your menu, you can:
- Increase your average check value
- Earn more without raising prices
- Identify inefficient dishes
- Simplify your kitchen operations
⚠️ Note:
Menu engineering isn't a one-time action. You need to regularly update your numbers, because popularity and costs change constantly.
Modern applications
Today, restaurants apply menu engineering with digital tools. Apps can automatically calculate which dishes fall into which category, so you don't have to do the math manually.
Delivery apps and online menus also use menu engineering principles. They place profitable dishes prominently and use visual cues to guide guests toward the most profitable choices. But here's something you only learn after closing your first month at a loss: even with perfect calculations, you'll fail if your "Stars" taste mediocre.
💡 Real-world example:
A restaurant analyzes their top 10 dishes:
- 3 dishes are Stars (keep and promote)
- 4 dishes are Plowhorses (raise price by €2-3)
- 2 dishes are Puzzles (better position on menu)
- 1 dish is a Dog (replace with new dish)
Result: 15% higher profit margin without loss of revenue.
The legacy of Kasavana and Smith
Their work fundamentally changed the hospitality industry. Menu engineering is now a standard part of hospitality education worldwide. Many restaurant chains have entire departments dedicated to menu optimization.
The principles have also spread to other sectors. Web shops, supermarkets, and even streaming services use similar methods to optimize their offerings.
How do you apply menu engineering? (step by step)
Gather your sales and cost data
Record how many of each dish you sell per week and what the exact cost price is (including all ingredients). You need at least 4 weeks of data for a reliable picture.
Calculate popularity and profitability
Classify each dish based on sales numbers (above or below average) and gross profit per portion (above or below average). This gives you the four quadrants.
Create an action plan per category
Promote Stars, raise prices on Plowhorses, reposition Puzzles better on the menu, and replace Dogs with new dishes. Test one change at a time to measure the effect.
✨ Pro tip
Kasavana and Smith's original 1982 research focused on analyzing the top 12 dishes per restaurant over 90-day periods. Start with this same timeframe for your first analysis to match their proven methodology.
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
Why has menu engineering become so successful?
It combines two crucial factors that restaurants often look at separately: what guests want (popularity) and what the restaurant earns (profitability). This systematic approach delivers directly measurable results.
Do large restaurant chains still use menu engineering?
Yes, virtually all major chains apply menu engineering, often with advanced software. They continuously analyze their menu to maximize profitability and test new dishes.
How often should I update my menu engineering analysis?
At least quarterly, but sooner if there are major changes in costs or seasons. Your sales patterns and cost prices change constantly, so your analysis needs to keep up.
📚 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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