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Chapter 11 Menu Engineering

Chapter 11 Menu Engineering. Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition. Sample Menu Engineering Worksheet. Sample Menu Engineering Worksheet (continued). Index of Menu Engineering Worksheet Calculations . A = Menu items B = Number of menu item sold

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Chapter 11 Menu Engineering

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  1. Chapter 11Menu Engineering Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

  2. Sample Menu Engineering Worksheet

  3. Sample Menu Engineering Worksheet (continued)

  4. Index of Menu Engineering Worksheet Calculations • A = Menu items • B = Number of menu item sold • C (Menu mix %) = B ÷ Total # of entrées sold • D (Food cost) = Standard cost of each item • E (Sales price) = Menu price of each item • F (Item CM) = E – D • G (Menu cost) = D · B • H (Menu revenues) = E · B

  5. Index of Menu Engineering Worksheet Calculations (continued) • I = Combined menu cost of all items • J = Combined menu revenues of all items • K (Food cost %) = I ÷ J • L (Menu CM) = F · B • M = Combined menu CM of all items • N = Total items sold • O (Average contribution margin) = M ÷ N

  6. Index of Menu Engineering Worksheet Calculations (continued) • P (Contribution margin rating) = If the item’s F > O, then the item is designated a high contribution margin rating; if the item’s F < O, it is designated a low contribution margin rating. • Q = (1 ÷ total number of menu items) · 0.7 • R (Menu mix rating) = If the item’s C > Q, then the item is designated a high menu mix rating; if the item’s C < Q, then it is designated a low menu mix rating. • S = Menu item classification

  7. Menu Engineering Categories

  8. Menu Engineering: What Should You Do with Your Results? • Stars: Profitable and popular; possible to increase their menu prices without affecting volume. • Dogs: Unprofitable and unpopular; remove from the menu unless there is a valid reason for continuing to sell them or profitability can somehow be increased. • Plowhorses: Unprofitable but popular; keep on menu but increase their contribution margins without decreasing volume. • Puzzles: Profitable but unpopular; keep on menu but increase their popularity. © John Wiley & Sons, Inc. 2009

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