Download the Chefxpertise menu engineering worksheet
Understanding your menu’s performance is crucial for maximizing profitability and customer satisfaction. One effective tool for achieving this is the menu matrix. By using your sales data to plot each menu item based on its profitability and popularity, you can quickly identify which items are your Stars, Plowhorses, Puzzles, and Dogs. This visual representation enables you to make informed decisions about how to optimize your menu. Here’s how to create and use a menu matrix to enhance your restaurant’s success.
What is a Menu Matrix?
A menu matrix is a graphical tool that categorizes menu items into four quadrants based on their popularity and profitability.
Download the Chefxpertise menu engineering worksheet
These quadrants are:
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- Stars: High profitability and high popularity
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- Plowhorses: Low profitability but high popularity
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- Puzzles: High profitability but low popularity
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- Dogs: Low profitability and low popularity
Steps to Create a Menu Matrix
1. Gather Sales Data
The first step in creating a menu matrix is to collect detailed sales data for your menu items. This data should include:
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- The number of each item sold within a specific time frame (e.g., one month or quarter).
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- The profit margin for each item (calculated as the selling price minus the cost of ingredients).
2. Calculate Popularity and Profitability
To plot your items on the matrix, you need to determine their relative popularity and profitability:
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- Popularity: Calculate the total number of each item sold and then determine the percentage of total sales each item represents.
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- Profitability: Calculate the profit margin for each item and determine the percentage of total profit each item contributes.
3. Create the Matrix
Using the calculated data, create a two-dimensional graph:
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- The horizontal axis represents profitability.
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- The vertical axis represents popularity.
Divide the graph into four quadrants to categorize your items as Stars, Plowhorses, Puzzles, or Dogs.
4. Plot Your Menu Items
Plot each menu item on the matrix based on its profitability and popularity percentages. This visual representation will help you quickly see where each item falls.
Interpreting the Menu Matrix
Stars (High Profitability, High Popularity)
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- Characteristics: These items are your best performers. They are both popular with customers and provide high profit margins.
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- Action: Promote these items prominently on your menu. Consider using visual cues like boxes, icons, or special sections to draw attention to them.
Plowhorses (Low Profitability, High Popularity)
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- Characteristics: These items are popular but don’t contribute much to your bottom line.
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- Action: Look for ways to increase their profitability. This could involve adjusting portion sizes, sourcing ingredients more cost-effectively, or slightly raising prices.
Puzzles (High Profitability, Low Popularity)
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- Characteristics: These items have high profit margins but aren’t popular with customers.
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- Action: Increase their visibility and appeal. This could include better menu placement, more enticing descriptions, or limited-time promotions to generate interest.
Dogs (Low Profitability, Low Popularity)
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- Characteristics: These items are neither popular nor profitable.
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- Action: Consider removing these items from your menu. They are taking up valuable space and may be distracting from your more profitable offerings.
Practical Example
Imagine you run a mid-sized bistro. After collecting and analyzing your sales data, you plot your items on the menu matrix:
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- Star: Grilled Salmon with Lemon Butter Sauce (high profit, high sales volume)
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- Plowhorse: Classic Cheeseburger (low profit, high sales volume)
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- Puzzle: Gourmet Mushroom Risotto (high profit, low sales volume)
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- Dog: Spinach and Artichoke Dip (low profit, low sales volume)
With this information, you can now take strategic actions:
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- Highlight the Grilled Salmon on your menu with a special icon or box.
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- Adjust the Cheeseburger’s portion size or price to improve profitability.
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- Promote the Mushroom Risotto with a special feature or enticing description.
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- Consider removing the Spinach and Artichoke Dip from the menu.
Enhance Your Menu with Chefxpertise Menu Mechanix
Creating a menu matrix is just the beginning. To fully optimize your menu and drive your restaurant’s success, take advantage of our free Quick & Dirty Strategy Session at Chefxpertise Menu Mechanix. Our team of seasoned professionals will help you identify and address menu and operational pain points, providing you with valuable insights and actionable strategies tailored to your unique needs.
Ready to transform your menu and boost your profitability?
Schedule Your Gratis Quick & Dirty Strategy Session Today!
Get our “Quick & Dirty Thoughts and Strategies” and start making impactful changes that will elevate your dining experience and bottom line. Book now, and let’s unlock the full potential of your menu through strategic menu engineering!
