Restaurant Menu Analysis

Abstract

Abstract As costs continue to escalate, menu analysis has once again become a significant topic of interest among foodservice professionals. A variety of menu analysis methods were discussed in hospitality literature over the last 30 years. Despite the fact that they offer different approaches and focus on different characteristics, they all have a common goal of finding a strategy that will help restaurant managers reveal more profitable menu items and possibly increase menu profitability. This article proposes an index method that helps to determine changes in overall menu contribution margin based on changes in contribution margin per individual menu item, proportion of sold items, and quantity of menu items sold. This method is meant to be a supplementary tool for analysis to support and enhance current menu analysis techniques.