What does 'menu engineering' focus on?

Menu engineering is a strategic approach that focuses specifically on evaluating the profitability and popularity of menu items within a restaurant. This involves analyzing how much money each item contributes to the overall revenue and how well it sells, which can help operators make informed decisions about which items to promote, keep, change, or remove from the menu. The goal is to maximize profitability by encouraging customers to order high-margin items and ensure that the menu aligns with customer preferences.

This analysis typically includes categorizing menu items based on their performance, such as using metrics that assess contribution margins and sales volume. By understanding which dishes are both popular and profitable, management can optimize the menu layout and pricing strategies to enhance overall financial success. Thus, focusing on these aspects allows for better management of food costs and inventory, which are vital in the hospitality industry.