The four types of menu performance are often categorized based on their contribution to overall profitability and popularity within a restaurant. They include:
Stars: These are the high-profit, high-popularity menu items. They are the best performers, contributing significantly to both revenue and profit. Stars are the items that customers frequently order and are willing to pay a premium for.
Plowhorses: Plowhorses are menu items that are highly popular but have lower profit margins. While they may generate substantial revenue due to their popularity, their profitability is lower compared to stars. Plowhorses often have lower ingredient costs but are sold at lower prices, resulting in thinner profit margins.
Puzzles: Puzzles are menu items with high profit margins but low popularity. These items may be overlooked by customers or may not be marketed effectively. Despite their potential for profitability, puzzles require additional attention to increase their visibility and appeal to customers.
Dogs: Dogs are menu items that have both low popularity and low profit margins. These items typically do not sell well and contribute minimally to overall revenue and profit. In some cases, dogs may even incur losses for the restaurant due to high ingredient costs and low sales volume.
Understanding the performance of menu items in these categories allows restaurant owners and managers to make informed decisions regarding menu pricing, marketing strategies, and menu engineering to optimize profitability and customer satisfaction. By focusing on stars, addressing puzzles, and possibly reevaluating or removing dogs from the menu, restaurants can improve their overall menu performance and financial health.