Menu engineering after a brand refresh means you need to recalculate which dishes generate the most profit. Your new menu, prices and possibly adjusted recipes require a fresh look at popularity versus profitability. In this article, you'll learn step-by-step how to calculate the margin of your refreshed menu.
Why menu engineering after a brand refresh is crucial
A brand refresh often means new prices, adjusted dishes and different positioning. What was previously your most profitable dish could now be a loss-maker. Menu engineering helps you promote the right dishes on your new menu.
💡 Example: Brand refresh impact
Restaurant De Nieuwe Smaak raised all prices by 15% after their refresh, but didn't adjust all recipes:
- Old steak: €28.00 - food cost 32%
- New steak: €32.20 - food cost 28%
- Old pasta: €16.50 - food cost 25%
- New pasta: €19.00 - food cost 22%
Result: Steak became more profitable, pasta too
The 4 quadrants of menu engineering
Menu engineering divides your dishes into 4 categories based on popularity and profitability:
- Stars: Popular + profitable → Promote these
- Plowhorses: Popular + not profitable → Raise price or lower costs
- Puzzles: Not popular + profitable → Try to make more popular
- Dogs: Not popular + not profitable → Consider removing
Calculate margin per dish
For each dish, you first calculate the gross margin in euros:
Gross margin = Selling price excl. VAT - Ingredient costs
💡 Example: Margin calculation
Teriyaki salmon after brand refresh:
- New menu price: €26.50 incl. 9% VAT
- Selling price excl. VAT: €24.31
- Ingredient costs: €7.80
Gross margin: €24.31 - €7.80 = €16.51 per portion
Measure popularity after brand refresh
You determine popularity by dividing the number of sales per dish by the total number of covers. After a brand refresh, you need at least 4-6 weeks of data for a reliable picture.
⚠️ Note:
Measure popularity only after the first month. Guests need time to get used to your new menu. The first weeks give a distorted picture.
Determine profitability
A dish is profitable if the gross margin is above the average of all your dishes. Calculate the average of all gross margins and divide your dishes into:
- High profitability: Gross margin > average
- Low profitability: Gross margin < average
💡 Example: 5 dishes after refresh
Gross margins of your main courses:
- Steak: €18.20
- Salmon: €16.51
- Pasta: €12.80
- Chicken: €14.90
- Vegetarian: €11.40
Average: (18.20 + 16.51 + 12.80 + 14.90 + 11.40) ÷ 5 = €14.76
High profitable: Steak, Salmon. Low profitable: Pasta, Vegetarian
Actions per quadrant
Depending on where your dish falls, you take different actions:
- Stars: Place these prominently on your menu, train staff to recommend them
- Plowhorses: Raise the price by €1-2 or lower ingredient costs
- Puzzles: Move to a better position on the menu or add description
- Dogs: Consider replacing with a new dish
Tools for menu engineering
Manual calculation takes a lot of time. A system like KitchenNmbrs automatically calculates your food cost and gross margin per dish. You immediately see which dishes generate the most revenue after your brand refresh.
How do you calculate margin after brand refresh? (step by step)
Calculate new cost prices
Add up all ingredient costs per dish according to your new recipes. Don't forget to include garnishes, sauces and oil. Check if suppliers have adjusted their prices.
Determine gross margin per dish
Subtract ingredient costs from your new selling price (excl. VAT). This gives you the gross margin in euros per portion. Calculate this for all your main courses.
Measure popularity after 4-6 weeks
Count how many times each dish was sold and divide by total number of covers. This gives you the popularity percentage. Wait at least one month for reliable data.
Place dishes in menu engineering matrix
Divide your dishes across the 4 quadrants: Stars (popular + profitable), Plowhorses (popular + not profitable), Puzzles (not popular + profitable) and Dogs (not popular + not profitable).
Adjust menu and prices
Promote your Stars, raise prices of Plowhorses, move Puzzles to better positions and consider replacing Dogs. Test changes for 2-3 months.
✨ Pro tip
Start with your 5 best-selling dishes from before the brand refresh. If those are still profitable now, you've secured your most important revenue source.
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 long should I wait after my brand refresh before applying menu engineering?
Wait at least 4-6 weeks. Guests need time to get used to your new menu and prices. The first weeks give a distorted picture of actual popularity.
Should I include all dishes in menu engineering or only main courses?
Focus on main courses first, they generate the most revenue. You can analyze appetizers and desserts later once you've mastered the system.
What if a popular dish is no longer profitable after my refresh?
This is a Plowhorse. Raise the price by €1-2 or lower ingredient costs by using cheaper alternatives. Test both options to see what works best.
How often should I repeat menu engineering after a brand refresh?
Every month for the first 6 months, then quarterly. Your new positioning needs time to stabilize, so monitor regularly whether your adjustments are working.
Can I do menu engineering without a POS system that tracks sales figures?
Yes, but it takes more time. Have your staff manually track which dishes they serve for a week. Or use receipts to count afterwards.
📚 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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