Why you need this
Every item looks equal on a menu, yet some sell and contribute while others only take space. Without that split, price, promotion or removal decisions stay gut feel.
Menu engineering crosses popularity with contribution margin and places the item in one of four quadrants. That clarifies where to invest, reprice or cut.
How it is calculated
Popularity index = item units sold / menu average units × 100. 70 percent or higher counts as high popularity (classic 70 percent rule).
Contribution margin = selling price − portion cost. Contribution is high when it is at or above the menu average contribution. High/low popularity × high/low contribution sets the quadrant: star, plowhorse, puzzle, dog.
How to read the result
Star: sells well and contributes well; keep it visible. Plowhorse: sells well but contributes little; review cost or price. Puzzle: strong contribution but weak sales; lift popularity with placement and suggestions. Dog: weak sales and weak contribution; consider removal or a serious reposition.
This tool is for information only. Factor in sales period, season and location before menu decisions.