2. Menu Engineering Worksheet

After pricing her menu items and putting them on the market for a while, Wen decided it is time to reevaluate the menu in her caf and make accordingly changes. Base on your calculation, what kind of recommendations will you give her on each one of the following menu items?

Menu Item	A	B	C	D	E	F	G	H	I	J
	# of portions sold	% of sales	Selling price ($)	Food cost ($)	G. profit (C-D)	Sales (A x C) #sold x price	Total F/C (A x D) #sold x food cost	Popularity Category Compare column B with std (14%)	Profitability Category Compare column E with std	Menu item class
Fried Chicken Sirloin Steak Baked Ham Stuffed Sole Broiled Shrimp	175 190 40 45 80		7.00 13.00 8.00 13.00 15.00	3.00 5.50 4.00 7.00 8.00
Totals		100%

Step 1: Total number of portions sold (sum of all # of portions sold)

Step 2: % on sales of each entre (# of portions sold for each entre / total # of portion sold)

Step 3: Gross profit of each entre (selling price food cost)

Step 4: Total sales of each entre (# of portion sold for each entre x selling price of each entre)

Total sales of all entrees (sum of total sales of each entre)

Step 5: Total food cost for each entre (food cost of the entre x # of the portions sold)

Total food cost for all entrees (sum of total food cost of each entre)

Step 6 and 7 are calculation to determine popularity of the entre item.

Step 6: Total percentage / number of different entrees = Average % for each type of entres sold

100% 5 type of entre items = 20% sales from each type of entre (In an ideal world, all of your entrees are equally popular and the number of each type of entres sold are similar, meaning 20% of your sales come from chicken, another 20% comes from steaks, etc.)

Step 7: However, we are not in an ideal world, so weve decided, we will consider an entre popular even if they are selling 70% of the average %

% Average for each type of entre sold x popularity standard (70%) = Popularity category standard

20% average x 0.7 = 14% (meaning if the % of sales on one type of entre exceeds 14%, we will consider this entre popular. We compare the 14% standard with the sale % of each entre item. For example, on column B, sales % we calculated on fried chicken is 33% which well exceeds the 14% popularity standard. Therefore, it will be considered very popular.

Step 8 to 10 are steps to determine profitability of each entre item

Step 8: Total food sales (F) total food cost (G) = Total contribution

Step 9: Total contribution / Total number of portions sold (A) = Average contribution on each portion

Step 10: Compare average contribution on each portion with gross profit on each entre to determine profitability

Step 11: Determine which classification each menu item falls into

Recommendations: