Menu Engineering Flashcards

Menu engineering as a profitability analysis tool was developed by which pair of researchers?

Answer: Donald Smith and Michael Kasavana

Donald Smith and Michael Kasavana developed menu engineering at Michigan State University in 1982 as a framework for analyzing menu item profitability and popularity.

In menu engineering, items classified as 'Stars' are characterized by:

Answer: High popularity and high profit margin

Stars are the ideal menu items — they sell frequently and generate strong contribution margin, making them the cornerstone of a profitable menu.

What term in menu engineering describes items with low popularity but high profitability?

Answer: Puzzles

Puzzles are high-margin items that don't sell well; the challenge is figuring out how to boost their popularity through repositioning or promotion.

'Plow Horses' in menu engineering are menu items that have:

Answer: High popularity but low profit contribution

Plow Horses are popular favorites that customers love, but they don't generate strong contribution margins, so operators often try to raise prices or trim portions.

In menu engineering, 'contribution margin' is calculated as:

Answer: Selling price minus the food cost of the item

Contribution margin equals the selling price minus food cost, representing the actual dollar amount each item contributes toward covering overhead and profit.

The primary goal of menu engineering is to:

Answer: Maximize overall menu profitability by analyzing item performance

Menu engineering uses sales mix data and contribution margins to identify which items drive profit, enabling operators to make strategic decisions that maximize total profitability.

Menu mix percentage (MM%) in menu engineering measures which of the following?

Answer: The proportion of total sales volume represented by each menu item

Menu mix percentage shows how often each item is chosen relative to all items sold, which determines whether an item is classified as popular or unpopular in the matrix.