Menu Analysis

The menu is the most important tool influencing the success or failure of a food and beverage operation. It's also the major piece of advertising that communicates to the customer exactly what is being sold. Therefore, the types of items, the way they are described, the price, and placement of the food and beverage items need be a forethought rather than an afterthought.

Two common measurements of menu items are their 1) Profitability and 2) Popular. A profitable menu item is one that generates above average contribution margin and a popular menu item is one that generates above average popularity. After conducting a menu analysis, each menu item can be classified as either a star, plowhorse, puzzle or dog. Depending on a menu item's classification, there are a number if approaches a menu planner can take.