Menu engineering matrix: stars, plowhorses, puzzles and dogs (with a worked example)
Updated 2026-10-27
Menu engineering tells you which dishes earn their place. You need two numbers per item: how much profit it makes per sale, and how often it sells. Cost your dishes first (see how to price menu items).
The formulas
- Contribution margin (CM) = selling price (ex GST) − plate cost.
- Average CM = total CM of all items sold ÷ total items sold.
- Sales mix % = number sold of the item ÷ total items sold.
- Popularity threshold = (1 ÷ number of items) × 70%. This is the common method from Kasavana and Smith's original model.
An item is high profit if its CM is above the average CM, and popular if its sales mix is above the threshold.
The menu engineering matrix
| Popular | Not popular | |
|---|---|---|
| High profit | Star: keep, feature and protect | Puzzle: promote, rename, reposition |
| Low profit | Plowhorse: reprice gently, cut cost, pair with add-ons | Dog: rework or remove |
Worked example (illustrative, four items, one month)
| Item | Sold | Price ex GST | Cost | CM | Mix | Class |
|---|---|---|---|---|---|---|
| Chicken rice | 400 | $13.00 | $3.90 | $9.10 | 40% | Plowhorse |
| Beef rendang | 300 | $17.00 | $5.50 | $11.50 | 30% | Star |
| Barramundi | 100 | $24.00 | $9.00 | $15.00 | 10% | Puzzle |
| Veg curry | 200 | $12.00 | $3.50 | $8.50 | 20% | Dog? |
Total items sold: 1,000. Total CM: $3,640 + $3,450 + $1,500 + $1,700 = $10,290, so the average CM is $10.29. The popularity threshold is (1 ÷ 4) × 70% = 17.5%. Veg curry sells 20%, above the threshold, so it is in fact a plowhorse, not a dog. This is why you calculate rather than guess.
What to do with each quadrant
- Stars: best spot on the menu and in your online ordering, top of photos, consistent recipe.
- Plowhorses: small price rises, a cheaper garnish, or sell a side or drink with them.
- Puzzles: better name and description, a photo, staff recommendation, feature in "popular" sections online.
- Dogs: remove, or rework if they serve a purpose (such as a vegan option).
Menu engineering online
On an online menu, the first category and the first items in each category get the most attention. Put stars and puzzles there, add photos, and use upsells for sides and drinks. Chefzi lets you reorder items and categories at any time. See features.
Use your findings on your online ordering page, where item order is easy to change. Use them on table QR menus too. Remember that Uber Eats commission changes each dish's margin. See the Uber Eats and DoorDash commission report for every rate and its source. The commission calculator shows the figure for your own sales.
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Frequently asked questions
What is menu engineering?
A way of analysing each menu item by profit (contribution margin) and popularity (sales mix), then deciding what to promote, reprice, rework or remove.
What are the four quadrants?
Stars (high profit, high popularity), plowhorses (low profit, high popularity), puzzles (high profit, low popularity) and dogs (low profit, low popularity).
How often should I do a menu engineering analysis?
Whenever you change the menu, and at least every few months using your latest sales and costs.
Where do I get the sales data?
From your POS or online ordering reports: the number sold of each item over the same period.
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