What does the term ‘menu engineering’ refer to?

Menu engineering refers specifically to the analysis of menu items based on their profitability and popularity. This practice allows restaurant managers and chefs to evaluate which dishes generate the most revenue and are most favored by customers. By understanding the sales performance and contribution margins of each item, establishments can make informed decisions about pricing, promotions, and menu design to maximize profitability.

This analysis often involves categorizing menu items into different groups, assessing food costs, and determining the popularity of each dish among customers. As a result, menu engineering helps in increasing customer satisfaction while also boosting the establishment's financial performance. This focus on data-driven decision-making is crucial in a competitive hospitality industry, allowing for effective adjustments and enhancements to the menu.