ExcelsiorAsset Management & Advisory

ExpertiseF&B and Restaurants The Menu Engineering Playbook

THE F&B PRACTICE · A WORKING TOOL

Menu Engineering

Every menu is a portfolio. Every dish is a position. This is how the kitchen's poetry meets the owner's arithmetic — and how anyone can learn to read a menu the way an asset manager reads a P&L.

EXCELSIOR
I · THE IDEA

Engineer in rupees, not percentages.

The same conviction that prices our wine prices our menu: the house banks contribution — absolute money per cover — not cost ratios. A 22% food cost on a dish that contributes ₹120 is worse business than a 45% food cost that contributes ₹900.

Menu engineering asks two questions of every dish, over a real trading period:

QUESTION ONE
Do guests choose it?
Popularity — its share of covers against a fair share of the menu.
QUESTION TWO
Does it pay?
Contribution — selling price minus true plate cost, in absolute money.

Two answers, four fates: the Star (chosen and paying), the Plowhorse (chosen, thin), the Puzzle (paying, ignored) and the Dog (neither). The craft is not the label — it is what you do next, and the tool below teaches that too.

III · THE PLAYBOOK

Four fates, four moves

CHOSEN · PAYING
The Star

Protect it. Never cheapen the plate, hold the recipe sacred, keep it visible — top-right of the page, first words from the server. Test gentle price rises; a Star carries them.

CHOSEN · THIN
The Plowhorse

The room loves it; the till doesn't. Re-engineer the plate cost quietly, pair it with a high-margin side, nudge the price in small steps — never break the loyalty that makes it popular.

IGNORED · PAYING
The Puzzle

Profitable and unloved — a selling problem, not a cooking one. Rename it, re-describe it, move it to the sight-line, let servers taste it and talk about it. If it still won't move, it wasn't a puzzle — it was a dog in good clothes.

IGNORED · THIN
The Dog

Retire it with grace — unless it exists for a reason the matrix can't see: the chairman's favourite, the children's plate, the dish one loyal table books for. Sentiment is allowed; unexamined sentiment is not.

IV · THE PRACTICE

A monthly rite, not a rescue.

Run the bench every month, after the sales mix closes. The matrix is a habit — like the stocktake, like the P&L review. Menus drift; the discipline is noticing.

01
Close the sales mix — one honest month from the POS, dish by dish
02
Cost the plate truly — recipe cost as served — garnish, bread, the amuse included
03
Let the bench classify — CM against the average; share against 70% of fair share
04
Make one move per dish — from the playbook — never five changes at once
05
Change the menu, not the kitchen — position, description and price move before recipes do
06
Wait a full cycle — let a month of covers vote on the change
07
Re-run and compare — the number that must rise is average CM per cover
“Business is a series of cash flows — and the menu is where they begin.”
THE F&B PRACTICE → THE WINE PROGRAMME →

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