Menu engineering is the art and science of designing your menu to maximise revenue.
It combines psychology, design and data to subtly guide guests towards dishes with higher margins. In this guide we translate that approach into 7 concrete steps you work through one by one to increase your revenue per guest — without compromising on quality or the guest experience.
Your menu is more than a list of dishes - it's a sales tool. Just as a good webshop presents products strategically, a cleverly designed menu can steer guests towards dishes that are ideal both for them and for you. The best menu engineering feels natural to the guest, while behind the scenes it significantly improves your profitability. The 7 steps below form a single journey: from raw data to a menu that earns more every day.
Menu engineering is a systematic, data-driven approach that was developed in the 1980s by Michigan State University and has since been refined by hospitality professionals worldwide. It revolves around two core questions for each dish: popularity (how often is it ordered?) and profitability (contribution margin = selling price minus ingredient cost). With those two dimensions as your compass, you work through the following 7 steps.
The ultimate guide The Ultimate Guide to Your Menu & Drinks Engineer every menu for margin, experience and repeat visits. Open the guideStep 1: Gather your sales data
Every better menu starts with figures, not gut feeling. Use restaurant analytics and export the sales data from the past 3 months from your POS system. Collect, per dish:
- Number of times sold (past month/quarter)
- Cost price (ingredients per portion)
- Selling price
- Contribution margin (selling price - cost price)
Put everything in a single spreadsheet. This overview is the foundation for the six steps that follow - without reliable data, you're steering blind.
Step 2: Categorise with the menu matrix
First, calculate your averages: average popularity (total sold / number of dishes) and average margin (total contribution margin / number of dishes). Then plot each dish on those two axes and place it in one of four categories:
Stars — high popularity + high margin
- These are your flagship dishes - frequently ordered and profitable
- Strategy: Present them prominently, don't change them
- Place them on the "hot spots" of your menu (centre, top right)
- Train your staff to actively recommend them
Puzzles — low popularity + high margin
- Profitable dishes that are underappreciated
- Strategy: Present and promote them better
- Improve the name and description
- Move them to a more prominent position
- Add a "Chef's recommendation" label
- Consider adding a photo
Plowhorses — high popularity + low margin
- Guests love them, but you earn little on them
- Strategy: Increase the margin without losing popularity
- Carefully raise the price (test in small steps)
- Optimise ingredients without sacrificing quality
- Analyse the portion size - can you sell side dishes separately?
- Move them to a less prominent position
Dogs — low popularity + low margin
- Neither popular nor profitable
- Strategy: Remove or drastically redesign them
- Some "dogs" serve a strategic function (children's menu, vegetarian)
- If they stay, place them inconspicuously and don't invest in them
With this categorisation you know exactly which dishes to push (Stars, Puzzles), which to adjust (Plowhorses) and which to cut (Dogs).
Step 3: Calculate your margins per dish
Categorising only works if your margins are right. Subtract the full ingredient costs from the selling price and divide by the selling price for the profit margin per dish. Aim for at least 65–70% margin. Focus on:
- Plowhorses: raise the margin carefully through price or ingredient optimisation without sacrificing quality
- Portion size: analyse whether you can sell side dishes separately to improve the margin
- Food costs: keep your food costs structurally under control
Only once you know what each dish earns can you apply the next step — pricing psychology — with precision. For a deeper dive into the psychology behind the prices themselves, see our guide to menu pricing psychology.
Step 4: Optimise your price psychology
How you present prices influences how much guests spend. Apply these techniques:
- Avoid currency symbols: "24" feels less like spending money than "€24.00". This works especially well in fine dining.
- No price columns: when prices are lined up directly under each other, guests start comparing and often choose the cheapest. Place prices after the description, without alignment.
- Charm pricing vs. round pricing: €19.99 works in supermarkets, but in restaurants €20 can come across as more trustworthy and of higher quality. Test what suits your concept.
- The power of the anchor: place an expensive item (e.g. €55 lobster) prominently. This suddenly makes a €32 dish seem reasonably priced. The anchor doesn't have to sell much.
- Create relative value: offer a small, medium and large size. Most guests choose "medium" - make sure that option has the best margin.
Step 5: Design your menu strategically
The right prices in the wrong place won't sell. Steer the guest's gaze with visual strategies.
The Golden Triangle
Eye-tracking research shows that eyes scan a menu in a triangle: first the centre, then the top right, then the top left. Place your "stars" and "puzzles" on these spots. Your "dogs" can go in the corners.
Boxes, white space and photos
- Boxes and borders: a box draws attention - use this sparingly for a maximum of 1-2 items. Too many boxes and the effect disappears.
- White space: dishes with more white space around them stand out more. Literally give your stars room to breathe.
- Photos: work well in casual dining and increase orders of pictured items by 25-30%. In fine dining, photos can come across as "cheap" - invest in professional food photography.
Menu structure and length
- 5-7 items per category is optimal: too much choice → decision stress → lower spending; too little choice → guests feel restricted
- Category order: experiment - some restaurants start with "Chef's favorites" to make the stars prominent
- Seasonal updates: a seasonal menu keeps the menu interesting, optimises purchasing costs and fits with sustainability trends
Step 6: Write descriptions that sell
The way you describe dishes influences both their appeal and the perception of price. Compare:
- Poor description: "Steak with fries" - functional, dull, no justification for a higher price
- Good description: "Tender Irish Black Angus steak, aged 28 days, with homemade fries from fresh Bintje potatoes and fresh herb butter"
Effective descriptions combine origin ("Irish", "local"), preparation method ("grilled", "slow-cooked", "homemade"), sensory words ("tender", "crispy", "creamy") and specific details ("aged 28 days", "organic"). Don't overdo it - guests see through overly marketing-style language. Want to go deeper into the psychology and craft of menu language — from the Cornell study (+27% uplift) to price presentation and provenance storytelling? Read our complete guide on writing menu descriptions that sell.
Step 7: Train your team and keep testing
The best menu design doesn't work if your team doesn't support it, and menu engineering is not a one-off exercise but an ongoing process.
- Train servers to actively recommend stars and give them tastings so they can describe dishes convincingly
- Explain why certain items are being promoted and consider incentives for upselling high-margin items
If you work with digital menus and QR codes, you can A/B-test versions, adjust prices in real time, show photos without printing costs and see exactly which items are viewed but not ordered. Just make sure your website and digital menu look professional. Then measure structurally: analyse sales figures monthly, recalculate the matrix every quarter, test small changes and compare with previous periods to spot seasonal effects.
Avoiding common mistakes
With menu engineering, the same mistakes are often made:
- Too many items: An overly extensive menu dilutes attention and increases choice stress
- Ignoring data: Making decisions on gut feeling instead of figures
- Overly aggressive techniques: Guests see through exaggerated manipulation
- A one-off exercise: Menu engineering is an ongoing process, not a project
- Not involving staff: Your team needs to know what to recommend and why
Conclusion: 7 steps to more revenue
These 7 steps — gathering data, categorising, calculating margins, pricing psychology, menu design, descriptions and team + testing — together aren't manipulation, but presenting your offering professionally. By working through them one by one, you can increase your revenue per guest by 10-15% without guests feeling disadvantaged. On the contrary: a well-structured menu also improves the guest experience by reducing choice stress.
The investment is minimal - a few hours of analysis and redesign - but the impact on your bottom line can be significant. An average restaurant with 100 covers per day earning €2 more per guest earns an extra €6,000 per month.
Start today: Export your sales data, calculate margins, and plot your first menu matrix. You'll be amazed at the insights you gain and the opportunities you discover. Combine this with a good reservation system and strong marketing for maximum results.