| Today I wanted to talk to your about your menu and | | | | food and beverage costs and enhance your |
| more specifically about engineering it for profit. | | | | profitability of your menu. Engineering does not stop |
| Menu engineering is the analysis of your menu which | | | | there as it allows you to position items on your menu |
| look at the sales price, sales history and the cost of | | | | to gain the maximum exposure to your customers to |
| each item of the menu. From the collected data | | | | gain maximum profit. Engineering allows you to focus |
| engineering refers to the calculation of the profit or | | | | on the profit or contribution of each item rather that |
| contribution margin of each item in relation to all the | | | | the usual practice of the individual cost percentage. |
| other items on the menu for a period of time. | | | | Some of the benefits of menu engineering include: |
| Menu engineering is an integral part of hospitality | | | | 1. Increased average gross profit per customer |
| management in todays robust and competitive market. | | | | 2. Item analysis for decision making on what item to |
| Each of the items once calculated will be classed into | | | | keep or get rid of |
| one of four categories: | | | | 3. Cost control analysis to decrease your F & B |
| 1. Stars (popular and profitable) | | | | costs |
| 2. Plow Horses (popular but not as profitable) | | | | 4. Sales promotion analysis allows you to promote |
| 3. Puzzles (not popular but highly profitable) | | | | higher profit items |
| 4. Dogs (neither popular or profitable) | | | | 5. Staff sales analysis and linked incentive programs |
| And it is with this information you are able to make an | | | | 6. Menu pricing analysis |
| informed and calculated decision on what to do with | | | | 7. New menu evaluation |
| the items on your menu. Engineering is not a one time | | | | 8. Menu layout analysis for increased profitability |
| calculation it is done on a regular basis like monthly or | | | | 9. Trend analysis for food styles on your menu |
| quarterly. It will allow you to maximise cost reduction in | | | | Remember dollars pays the bills not percentages. |