Operations
Menu Engineering
Definition: Analyzing item popularity and contribution margin to optimize menu design and pricing.
Menu engineering classifies items as stars, plowhorses, puzzles, and dogs based on sales mix and contribution. Stars get prominence; dogs get redesigned or removed.
Psychological pricing, anchor items, and bundle design influence check average without raising every price. LTOs test new items before permanent placement.
Engineering fails without accurate recipe costing and POS category mapping.
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