In food service, what does the term 'menu engineering' refer to?

Menu engineering refers to the strategic design of menu items in a way that maximizes both the profitability of each item and the overall appeal of the menu to customers. This practice involves analyzing the performance of each menu item based on factors like food cost, selling price, and customer preferences. By categorizing items as stars, plowhorses, puzzles, or dogs—based on their popularity and profitability—managers can make informed decisions about which items to promote, change, or remove.

Understanding menu engineering is crucial for driving sales and enhancing the dining experience, as it not only helps in highlighting the most profitable items but also ensures that the menu aligns with customer trends and preferences. This strategic approach can lead to increased revenues and greater customer satisfaction.