Menu engineering matrix

Menu engineering is the systematic process of studying restaurant sales and inventory data to
understand the popularity and profitability of the items in a restaurant menu over a period. By
engineering menu carefully, restaurants can understand how it performs over time and effect
changes so every item stays popular and profitable.

Steps in Menu engineering:

1. Collect Data Gather accurate data for a specific time period (e.g., 3 months):

• Selling price of each item.

• Food cost per item (ingredient cost).

• Number of units sold.

• Optional: labor or preparation costs (for advanced analysis).

2. Calculate Contribution Margin (CM)

This measures how much each dish contributes to profit after covering food cost.

Formula: Contribution Margin (CM) = Selling Price − Food Cost

Example: Grilled Chicken Plate

• Selling Price = 12.00 JOD

• Food Cost = 4.50 JOD

• CM = 12.00 − 4.50 = 7.50 JOD

CM Ratio: CM ÷ Selling Price × 100 = 62.5%

So, this dish has a 7.50 JOD margin and a 62.5% profit ratio.

3. Measure Popularity

Calculate how often each item sells compared to others.

Formula: Popularity (%) = (Units Sold ÷ Total Units Sold) × 100

This helps you see which dishes customers love and which are being ignored.

4. Classify Menu Items (The Menu Matrix)

Now, plot each item based on profitability (high/low) and popularity (high/low).

You’ll get four categories:

⭐ Stars High Profit + High Popularity Keep and promote. Highlight on menu.

🐎 Plowhorses Low Profit + High Popularity Reduce portion size, adjust recipe or price
slightly. 🧩 Puzzles High Profit + Low Popularity Improve presentation, rename, or reposition on
the menu. 🐶 Dogs Low Profit + Low Popularity Consider removing or replacing.

5. Take Action after categorizing

• Redesign menu layout to feature Stars more prominently.

• Adjust pricing to improve Plowhorses.

• Market or rework Puzzles.

• Drop Dogs that don’t add value.

Example of menu engenieering

Step 1: Calculate Contribution Margin (CM)

CM = {Selling Price} - {Food Cost}

Item SP FC Units Sold CM (PKR)

Vanilla Oreo 200 80 500 120
Chocolate 350 150 300 200
Strawberry shake 250 100 450 150
Mango shake 300 180 150 120
Banana shake 500 220 100 280
Caramel coffee 280 140 200 140

Step 2: Calculate Average Contribution Margin

Average CM = {120 + 200 + 150 + 120 + 280 + 140}/{6} = {1010}/{6} =168.3

Average CM ≈ 168 PKR

 High CM: >168

 Low CM: <168

Step 3: Calculate Popularity Index

Total units sold: [500 + 300 + 450 + 150 + 100 + 200 = 1700]

Popularity benchmark= 100%/ No of items in that category 100/6=16.67%

Average popularity index = units sold/ total unit sold e.g. 500/1700

Now calculate % for each item:

Item Units Sold Popularity (%)

Vanilla Oreo 500 29.4%
Chocolate 300 17.6%
Strawberry shake 450 26.5%
Mango shake 150 8.8%
Banana shake 100 5.9%
Caramel coffee 200 11.8%

👉 High popularity: >16.67%

👉 Low popularity: <16.67%

Step 4: Classification Using Menu Engineering Matrix

Item CM Level Popularity Category
Vanilla Oreo Low High Plowhorse
Chocolate High High Star
Strawberry shake Low High Plowhorse
Mango shake Low Low Dog
Banana shake High Low Puzzle
Caramel coffee Low Low Dog

Step 5: Managerial Recommendations

⭐ Stars (High CM, High Popularity)

Chocolate

 Maintain quality and consistency

 Promote heavily (prime menu placement)
 Avoid price increases that may reduce demand

🐄 Plowhorses (Low CM, High Popularity)

Strawberry shake

 Slightly increase price (if demand is inelastic)

 Reduce portion size or ingredient cost
 Bundle with high-margin items

❓ Puzzles (High CM, Low Popularity)

Banana Shake

 Improve visibility and promotion

 Train staff to upsell
 Reposition on menu or rename for appeal

🐕 Dogs (Low CM, Low Popularity)

Mango shake, Caramel Coffee shake

 Consider removing from menu

 Reformulate to reduce cost
 Replace with innovative or seasonal items

📊 Final Insight
 The shake corner has only one Star, indicating limited high-performing items
 Multiple Plowhorses suggest strong demand but profit optimization needed
 Presence of Dogs indicates menu inefficiency
 Strategic focus should be on:
o Converting Puzzles → Stars
o Improving margins of Plowhorses
o Eliminating or redesigning Dogs
Hazard Analysis of a Food Restaurant

Introduction

Hazard analysis is a systematic process used to identify, evaluate, and control potential hazards
that may compromise food safety in a restaurant. These hazards may be biological, chemical,
physical, or allergenic in nature and can occur at any stage from receiving raw materials to
serving food to customers.

1. Types of Food Safety Hazards in Restaurants

A. Biological Hazards

Biological hazards are caused by microorganisms that can lead to foodborne illness.

Common Sources
  Raw meat, poultry, seafood, and eggs
 Contaminated water
 Poor personal hygiene
 Improper storage temperatures
 Cross-contamination

Examples

 Salmonellosis
 Escherichia coli infection
 Listeriosis
 Norovirus infection

Control Measures

 Proper cooking temperatures

 Refrigeration below 5°C
 Hand washing and sanitation
 Prevention of cross-contamination
 Regular pest control

B. Chemical Hazards

Chemical hazards arise from harmful substances entering food.

Common Sources

 Cleaning agents and sanitizers

 Pesticide residues
 Food additives used incorrectly
 Lubricants and chemicals from equipment

Control Measures

 Proper labeling and storage of chemicals

 Staff training
 Use of approved food-grade chemicals
 Separation of chemicals from food storage areas

C. Physical Hazards

Physical hazards are foreign objects that may injure consumers.

Common Sources

 Glass fragments
 Metal shavings
 Hair
 Plastic pieces
 Stones or bones

Control Measures

 Equipment maintenance
 Hair restraints and uniforms
 Visual inspection of ingredients
 Use of sieves and metal detectors

D. Allergenic Hazards

Food allergens can cause severe allergic reactions in sensitive individuals.

Common Food Allergens

 Milk
 Eggs
 Peanuts
 Tree nuts
 Soy
 Wheat
 Fish
 Shellfish

Control Measures

 Proper food labeling

 Avoiding cross-contact
 Separate utensils and preparation areas
 Staff awareness and customer communication

2. Hazard Analysis According to Restaurant Operations

Restaurant Type of
Potential Hazard Preventive Measure
Operation Hazard

Receiving raw Contaminated meat Biological Supplier approval and inspection

Restaurant Type of
Potential Hazard Preventive Measure
Operation Hazard

materials

Cold storage Temperature abuse Biological Maintain refrigeration temperature

Food preparation Cross-contamination Biological Separate raw and cooked foods

Monitor internal cooking

Cooking Undercooking Biological
temperature

Cleaning Chemical residues Chemical Proper rinsing and storage

Serving Foreign objects Physical Staff hygiene and inspection

Survival of
Reheating Biological Reheat above safe temperature
pathogens

Waste disposal Pest infestation Biological Proper waste management

3. Example of Hazard Analysis for Chicken Biryani Preparation

Processing Step Hazard Identified Risk Level Control Measure

Receiving chicken Pathogenic bacteria High Approved suppliers

Refrigerated storage Microbial growth High Store below 5°C

Cutting and marination Cross-contamination Medium Sanitize utensils

Cooking Survival of pathogens High Cook thoroughly

Holding before serving Bacterial growth High Hold above 60°C

Serving Contamination by handlers Medium Gloves and hygiene practices

4. Critical Control Points (CCPs) in Restaurants

Critical Control Points are stages where hazards can be prevented, eliminated, or reduced to safe
levels.

Common CCPs

1. Cooking temperature control

2. Refrigeration and frozen storage
3. Hot holding of cooked foods
 4. Reheating procedures
5. Employee hygiene and sanitation

5. Importance of Hazard Analysis in Restaurants

 Prevents foodborne illnesses

 Improves food quality and safety
 Ensures regulatory compliance
 Protects restaurant reputation
 Reduces food wastage and economic losses
 Enhances consumer confidence

Conclusion

Hazard analysis is an essential component of restaurant food safety management. Identification

and control of biological, chemical, physical, and allergenic hazards throughout food preparation
and service operations help ensure safe food production and protect public health. Proper
implementation of sanitation practices, temperature control, staff training, and monitoring
systems significantly reduces the risk of food contamination in restaurants.