At a neighbourhood bistro, the chef is reviewing next month’s menu. The house pasta sold 30 portions last month, twice as many as the steak. It deserves a prominent place, surely? The manager asks to see the ingredient costs before agreeing.
After ingredients, those 30 pasta dishes contributed €120. The 15 steaks contributed €210. And the burger, which nobody had been arguing about, contributed €320 — more than either of them. These are illustrative figures, not a case study from a real restaurant.
So which main deserves the most attention on the new menu?
The pasta is ordered more often than the steak, the steak contributes more per plate and the burger contributes the most overall. Menu engineering puts those facts together before you change the menu.
Three different ways a dish can earn its place
A sales report shows demand. It doesn't show how much money remains after the ingredients for each portion have been paid for.
For each dish, start with three figures:
- Portions sold: the actual number sold in a chosen period, not the number of bills or guests.
- Contribution per portion: the selling price excluding VAT minus the portion’s ingredient cost, excluding recoverable VAT.
- Total contribution: contribution per portion multiplied by portions sold.
A €12 pasta dish with €8 in ingredients contributes €4 per portion; 30 sales leave €120 after ingredients. A €22 steak with the same €8 ingredient cost leaves €14 per plate, or €210 across 15 sales. These figures are hypothetical. Here is the full main-course category over 30 days, with monetary amounts in euros excluding VAT:
| Main course | Portions sold | Net price per portion | Ingredients per portion | Contribution per portion | Total contribution |
|---|---|---|---|---|---|
| Burger | 40 | €15 | €7 | €8 | €320 |
| Pasta | 30 | €12 | €8 | €4 | €120 |
| Steak | 15 | €22 | €8 | €14 | €210 |
| Risotto | 10 | €19 | €9 | €10 | €100 |
| Main-course salad | 5 | €10 | €8 | €2 | €10 |
| Total | 100 | — | — | — | €760 |
Together, these mains generated €1,530 in net sales and used €770 in ingredients, leaving €760 after ingredients.
That €760 is not net profit. Wages, rent, energy, card fees, packaging, commissions and other expenses are outside this ingredient-only calculation. Some dishes also take more time and effort to serve.
Drawing the lines on a menu engineering matrix
The classic menu engineering matrix compares two measures: a dish's share of portions sold within its category, and its contribution per portion relative to the category.
The dividing line for contribution is the sales-weighted average: €760 divided by 100 portions, or €7.60 per portion. Equal to or above that figure counts as high.
For popularity, the threshold is 70% divided by the number of valid dishes in the category: 70% ÷ 5 = 14% here. The burger has 40% of portions sold, pasta 30%, steak 15%, risotto 10% and the main-course salad 5%. At or above 14% counts as popular. A fully specified dish with zero sales still counts among the five positions used to set the threshold.
The result is four groups, known internationally as Stars, Plowhorses, Puzzles and Dogs. These are relative positions on a matrix, not labels meaning “profitable” and “unprofitable”.
Stars — popular and high-contribution. Both burger and steak qualify. The steak's 15% share only just passes the 14% popularity line; the burger is the biggest total contributor at €320. Protect their quality and availability.
Plowhorses — popular but lower-contribution. The pasta's €4 per portion is below average, but it still contributes €120 in total. Review recipe costs and waste before changing a dish regulars value.
Puzzles — higher-contribution, less popular. The risotto contributes €10 per plate but represents 10% of sales. Check whether its description, visibility or presentation explains some of the low demand; the matrix itself cannot tell you why.
Dogs — lower-contribution and less popular. The main-course salad contributes €2 per portion and sells five. It might still be the only suitable main for some guests. Check its role, waste and feedback before considering removal.
A lower-than-average contribution can still be positive. Being a Plowhorse does not mean the pasta loses money.
Check the evidence before changing the menu
Use one complete category over one defined period. Don't mix desserts with mains or compare different months. Count portions actually sold, allowing for voids and refunds, and use realised net prices after discounts on a consistent VAT basis.
Cost the full saleable portion, including sauces, garnishes, cooking yields and preparation waste — not just the raw ingredients on an old recipe sheet. Exclude recoverable VAT from costs. If recipe costing is the missing piece, use the separate Food Cost Calculator before comparing dishes.
If selling prices or ingredient costs changed during the month, use the relevant historical figures or split the period. Today's recipe cost is useful for a current estimate, not a precise claim about past margins.
If an entire category sold nothing, neither its sales shares nor its sales-weighted average can be calculated. A single-dish category offers no useful comparison; two or three items provide a fragile result.
Treat dishes near a threshold cautiously: the steak's 15% sales share is only just above 14%, so a few orders could change its group. The matrix prioritises questions; it doesn't deliver a verdict.
Turn the matrix into one manageable decision
For a small restaurant, start with a modest experiment, not a wholesale redesign. With the pasta, ask whether portion inconsistency or wasted ingredients explain its €4 contribution. The answer isn't necessarily a price rise.
For the risotto, keep its recipe and price but try a clearer description or more visible position among the mains. Then check its share of portions sold in comparable services, the ingredient contribution and what guests say. An increase in orders alone would not prove that the new description caused it.
Compare similar services; a lunch-heavy month isn't equivalent to a holiday month of evening bookings. If several things changed, don't attribute any improvement to one menu edit.
You can do that initial check using your existing records. MenuAI’s free Menu Engineering Calculator lets you compare dishes in one category and period. Enter each name, selling price excluding VAT, ingredient cost and portions sold. The calculator opens with five empty rows, lets you add more, and gives you the full financial summary, four-quadrant matrix and practical recommendations without registration or a subscription.
The challenge isn't the first calculation. It's keeping the numbers current as demand, prices and recipes change.
What changes when menu engineering becomes routine?
In MenuAI, orders placed through MenuAI provide sold quantities and sales shares, which managers can compare across periods. They represent that ordering channel — not automatically every sale from an external till or delivery platform.
On the entry paid plan, a manager can enter a dish’s ingredient cost manually and compare selling price, contribution per portion, total contribution and matrix position. Higher plans use ingredient, recipe, purchasing and stock records to support more automated costing. Missing cost information must remain unknown, not be counted as zero. A new supplier price changes the current calculation; a precise historical contribution still requires the costs that applied to those earlier sales.
MenuAI’s dish ratings and reviews add a separate perspective. A Star in the matrix reflects sales share and ingredient contribution, not five-star guest reviews. The existing best- and worst-rated dish views rank guest feedback, not portions sold. A much-loved dish can still be a Puzzle or Dog in the financial matrix.
At a monthly review, a manager notices that pasta orders have risen while a key ingredient has become more expensive. She checks the recipe cost, compares the dish’s contribution with the previous period, reads guest feedback and asks the chef to review portioning. If the team revises its description, she checks the next comparable period before drawing conclusions.
That doesn't guarantee greater profit; it makes the decision reviewable. Staff can also update descriptions and availability in MenuAI's digital menu when a dish changes or sells out.
If your team needs this analysis between menu reviews, you can create a MenuAI account or compare MenuAI plans and choose the level of costing that fits how you manage ingredients and purchasing.
Questions restaurant owners often ask
Can I include fixed-price lunches or meal deals with à la carte mains?
Only if prices and ingredient costs are genuinely comparable. A bundled lunch price cannot simply be assigned to its main course without a defensible allocation. It's often clearer to analyse lunch deals separately.
Should different portion sizes count as one dish?
If a small and large portion have different selling prices or ingredient costs, treat them as separate items for the clearest result. Combining them requires a properly weighted price and cost, not a simple average.
Can I compare results across two restaurant locations?
Yes, but start with a matrix for each location. Different prices, recipes, customer habits and sales mix can make a combined ranking misleading. Compare the patterns after checking those differences.
What if a dish was available for only part of the month?
Keep its limited availability visible in your notes. Low sales may reflect a stock shortage or a late menu launch, rather than lack of demand. Compare it over a period when customers had a fair chance to order it.
A bestseller tells you what guests choose. Menu engineering shows what those choices leave after ingredients — and which question to ask the chef, supplier or front-of-house team next. The useful decision is rarely just “keep” or “remove”.
