Menu engineering typically involves 4 key components:

1. Menu Analysis: This step involves gathering data on each menu item, including sales volumes, food costs, and contribution margins. By categorizing items into different groups based on their popularity and profitability, managers can identify the “stars” (highly profitable and popular items), “plowhorses” (popular but less profitable items), “puzzles” (less popular but profitable items), and “dogs” (low popularity and profitability items).

2. Menu Item Placement: Strategic placement of menu items can influence customer choices and increase sales. Highlighting high-profit items through visual cues such as borders, colors, or images can draw attention and encourage customers to select those options. Additionally, the strategic placement of items on the menu, such as positioning high-profit items in prominent locations, can further drive their sales.

3. Pricing Strategies: Effective pricing strategies can significantly impact profitability. Menu engineering involves analyzing the perceived value of each item and adjusting prices accordingly. Strategic pricing techniques, such as anchoring (setting a high-priced item next to a similar but lower-priced item) or tiered pricing (offering different portion sizes or combos), can guide customer choices and increase profitability.

4. Menu Redesign: Based on the analysis and insights gained from the previous steps, menu redesign involves revising the layout, organization, and descriptions of menu items. By utilizing enticing descriptions, appealing food photography, and well-structured categories, a menu can create a positive impression and entice customers to order profitable items.