Menu Engineering

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MENU ENGINEERING 2How to calculate Market Mix % How to measure High/Low Popularity How to calculate item CM and total CM How to measure High/Low Profit IF function Menu engineering quadrant

MARKET MIX %Number sold: Item A 24 Item B 32 Item C 20 TOTAL NO MENU ITEMS: 3 (use count ITEMS: function) TOTAL ITEMS SOLD: 76 SOLD:

What is the Market Mix % for Item A?

Market Mix % for Item A= Number of Item A sold Total number of items sold 24 x 100 76 1 31.58%

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Measuring PopularityCount number of items on the menu E.g. number of items = 3 Calculate average MM% for each items share of the menu e.g. Average MM% Average MM% = 100 No. of menu items = ?

What do you multiply the average MM% by to get your popularity measure ?

Measuring Popularity- multiply by 70% Therefore popularity measure = 33.33 x 70% = 23.33 If MM% < 23.33 then Popularity is LOW If MM% > 23.33 then Popularity is HIGH

Calculating CM

How do you calculate Item CM??? How do you calculate total CM???

Calculating CMItem CM = item SP item CP Total CM = (item SP x no. items sold) (item CP x no. items sold) Item A SP Item A CP Item B SP Item B CP Item C SP Item C CP = R100.00 = R40.00 = R80.00 = R35.00 = R130.00 = R50.00

No. Item A sold = 24

No. Item B sold = 32

No Item C sold = 20

What is the total CM for each item and the total CM for the entire menu?

Measuring ProfitabilityWork out total CM per item A = R1440 B = R1440 C = R1600 R4480 How do we measure whether CM is LOW or HIGH?

Measuring ProfitabilityTOTAL ITEM CM TOTAL NO. OF ITEMS c Average Item CM = R185 3 = R61.66

c if total item CM > R61.66 Then the CM category is HIGH (High profitability)

What is a Star, Plowhorse, Puzzle, Dog? Plowhorse,

STAR

PUZZLE

PLOWHORSE

DOG