What does the term "menu engineering" refer to?

Menu engineering refers to the analysis and design of menu items with the goal of maximizing profitability. This process involves evaluating which items contribute the most to a restaurant's financial success and determining how to position and promote them effectively on the menu. By understanding the popularity and profitability of various dishes, management can make informed decisions about pricing, placement, and marketing strategies. This strategic approach is essential for ensuring that the menu attracts customers while also driving revenue for the business.

In menu engineering, operators often assess factors such as food cost, contribution margin, and customer preferences. By analyzing sales data and customer feedback, they can identify high-margin items and create a menu that enhances overall performance and profitability. This focus on profitability ensures that menu offerings align with business objectives while catering to customer demands.