Menu & Pricing
16 min read
Intermediate

Menu Engineering: Designing Profitable Menus

Engineer your menu using contribution margin and item popularity. Apply design psychology to direct attention to the most profitable choices.

Menu Engineering Matrix

Stars

High popularity, high margin — promote heavily and protect quality.

Plow Horses

High popularity, low margin — adjust portion/costing or raise price.

Puzzles

Low popularity, high margin — improve naming, placement, and storytelling.

Dogs

Low popularity, low margin — remove or rework.

Metrics

Contribution Margin

Margin = Price − Food Cost. Focus promotion on high-margin items and optimize recipes on low-margin but popular items.

Popularity

Rank items by sales volume relative to category. Use 80/20 to identify your true demand drivers.

Turn insights into profit

Use our Menu Costing tool to model margins and set winning prices.

FAQs

How often should I recalibrate prices?

Review quarterly or whenever food costs shift > 5–8%. Update costing sheets and watch contribution margin trends.

What’s a good target margin?

Depends on concept, but aim for 70–75% gross margin on Stars; fix Plow Horses via portion control or price nudges.

How many items per section?

Keep 6–8 per section to reduce choice overload and direct attention to profitable picks.

Resources & Templates

Downloads

• Menu Engineering Matrix Sheet (editable)
• Quarterly Pricing Review Checklist
• Copy/Naming Swipe File

Case Examples

ItemPopularityCMClassAction
Spicy Chicken BowlHighHighStarFeature at eye level; test +$1
Truffle FriesHighLowPlow HorseReduce portion 10% or +$0.50
Vegan PitaLowHighPuzzleRename, move to top-right, add photo
Lemon TartLowLowDogRemove or bundle with coffee
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