Menu Engineering With Analytics: Finding Your Most Profitable Dishes

Every restaurant menu tells a story, but not every dish contributes equally to the bottom line. Some items are clear customer favourites, while others generate higher profits despite being ordered less often. The challenge for restaurant owners is finding the balance between guest satisfaction and financial performance – a process known as menu engineering. By using the right insights, it becomes possible to highlight the dishes that truly drive profitability while improving or removing those that hold a business back.

Restaurant analytics software has made this process far more precise and insightful than traditional methods. Instead of relying solely on instinct or anecdotal feedback, restaurant owners can now use hard data to understand what is really driving revenue. This makes it easier to evaluate menu items not only by popularity but also by profitability, helping managers strike the right balance between guest satisfaction and business goals.

What Is Menu Engineering?

Menu engineering is the practice of evaluating and optimising menu items based on two main factors: their popularity and their profitability. Every dish on a menu contributes differently to a restaurant’s bottom line. Some are crowd favourites but have low margins, while others may generate higher profit but attract fewer orders.

The process categorises items into four groups:

• Stars – popular and profitable dishes that deserve prime placement.
• Plough-horses – popular but lower-margin dishes that may need cost adjustments.
• Puzzles – profitable but not widely ordered, often requiring better promotion.
• Dogs – low-performing and low-profit items that may need to be removed.

By identifying where each dish falls, a restaurant can rework its menu design, pricing strategy, and promotional efforts to focus on the items that matter most.

How Restaurant Analytics Software Enhances Menu Decisions

Traditionally, menu analysis involved manually reviewing sales reports, which could be time-consuming and prone to oversight. Restaurant analytics software simplifies this by integrating data from point-of-sale systems, inventory, and customer behaviour. With a centralised dashboard, managers can instantly see:

• Which dishes sell most frequently.
• Profit margins per item after accounting for ingredient and preparation costs.
• Seasonal fluctuations in dish popularity.
• Correlations between menu design and order choices.

This data-driven approach helps ensure decisions are based on evidence, not guesswork. For example, if a dish appears to be a “Puzzle”, analytics might reveal that its low popularity stems from poor menu placement or insufficient staff promotion rather than lack of appeal.

Practical Steps to Improve Profitability With Analytics

Track Ingredient Costs Closely

Rising food costs can quietly erode margins. Analytics tools make it easier to monitor ingredient price changes and adjust pricing accordingly.

Optimise Menu Layout

High-margin “Star” items should be placed in areas of the menu where eyes naturally fall first, such as the top-right corner or highlighted boxes.

Experiment With Promotions

If a profitable item is underperforming, try limited-time specials or staff upselling strategies. Analytics can show whether these efforts lead to increased orders.

Remove or Rework Poor Performers

Dishes consistently falling into the “Dog” category may be better removed, or re-engineered with a lower cost base to improve margins.

Leverage Customer Insights

Analytics can reveal customer trends, such as increasing demand for plant-based options. Incorporating these insights helps keep the menu relevant while boosting profitability.

The Competitive Advantage of Data-Driven Menus

Restaurants face increasing competition and rising operational costs, making every decision about the menu more important than ever. By combining the principles of menu engineering with the insights provided by restaurant analytics software, operators can uncover hidden revenue opportunities and design menus that delight customers while maximising profitability.

Ultimately, a data-informed menu is not just a tool for boosting sales – it is a long-term strategy for sustainable growth. Those who embrace analytics today will be better equipped to stay ahead in the competitive foodservice industry tomorrow.