In The Food Cost Mastery: Fusion of Academic Rigor and Industry Expertise, Wissam Baghdadi introduces menu engineering as a strategic approach to maximize profitability by analyzing menu items based on profitability and popularity. Menu engineering allows restaurants to position dishes effectively, highlight best-sellers, and improve menu layout to boost sales. Here’s how restaurants can categorize and leverage menu items to drive success.

The Basics of Menu Engineering

Menu engineering involves categorizing each menu item based on two key factors: profitability and popularity. The goal is to optimize these categories to improve overall sales performance. By analyzing the cost and popularity of each dish, restaurants can make informed decisions on which items to promote, adjust, or even remove.

Understanding the Categories

Baghdadi divides menu items into four main categories: Stars, Puzzles, Plow Horses, and Dogs. Here’s a breakdown of each:

1. Stars – High Profit, High Popularity
   Stars are menu items that are both profitable and popular, making them ideal candidates for promotion. These items should be prominently displayed on the menu and strategically marketed. For example, if a restaurant’s “Margherita Pizza” consistently sells well and has a low food cost, it would be a Star item.
   • Strategy: Increase visibility through special mentions, highlight them in bold, or create combos around these items.
2. Puzzles – High Profit, Low Popularity
   Puzzles are profitable but lack popularity. Baghdadi suggests exploring ways to increase the appeal of these dishes, possibly through pricing adjustments, rebranding, or repositioning on the menu.
   • Strategy: Experiment with different menu placements, offer samples, or create pairings to spark customer interest. For instance, a high-margin dessert that doesn’t sell well might benefit from a discounted combo with a Star main dish.
3. Plow Horses – Low Profit, High Popularity
   Plow Horses are popular but less profitable, often because of higher ingredient costs or lower pricing. These items attract customers, so they remain important for the menu. However, adjustments can be made to improve their profitability.
   • Strategy: Consider small price increases, substitute ingredients to lower costs, or offer as part of combo deals. For example, adding an inexpensive side to a popular but low-margin entrée can create value without sacrificing profitability.
4. Dogs – Low Profit, Low Popularity
   Dogs are both unprofitable and unpopular, making them prime candidates for removal. Unless these items serve a specific purpose (like appealing to niche dietary needs), it’s often best to phase them out.
   • Strategy: Replace or remove Dog items to free up menu space for more profitable options. Baghdadi suggests closely monitoring these items, as they often drain resources without contributing positively to sales.

Implementing Menu Engineering

1. Analyze Profitability and Popularity Data: Begin by reviewing sales and cost data for each menu item. Calculate the food cost percentage to understand profitability and use sales reports to determine popularity. Software tools can simplify this process, enabling restaurants to categorize items accurately.
2. Positioning Items on the Menu: Strategic placement is crucial in menu engineering. Baghdadi recommends placing Stars in highly visible areas of the menu, such as the top-right corner or highlighted sections, where customers’ eyes naturally gravitate. Puzzles can be positioned next to Stars to increase their visibility, while Dogs can be minimized or omitted altogether.
3. Leverage Design and Visuals: Design plays a significant role in drawing attention to high-priority items. Using visual cues, such as boxes, icons, or photos, can emphasize Stars and Puzzles, guiding customers toward these choices.
4. Regularly Review and Update the Menu: Menu engineering is an ongoing process. As customer preferences and ingredient costs change, periodically reviewing and adjusting the menu ensures it remains optimized for profitability. Baghdadi stresses that even minor adjustments can have a substantial impact on the bottom line.

Mastering menu engineering allows restaurants to boost sales by leveraging data-driven insights into item profitability and popularity. Through thoughtful categorization and strategic positioning, as Baghdadi details in The Food Cost Mastery, restaurants can create menus that not only enhance customer satisfaction but also drive sustainable profit growth. Menu engineering is more than just design—it’s a strategy that aligns customer preferences with the restaurant’s financial goals, creating a successful and balanced dining experience.