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Restaurant Management Glossary

Glossary of Menu Engineering and Menu Design

The 18 terms of menu engineering and menu design: menu engineering, contribution margin, psychological pricing, signature dishes and more.

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Menu and Product Engineering — restaurant management glossary ChefBusiness
Glossary

18 terms on menu and product engineering

A restaurant menu is not a list of dishes — it is a sales and profitability tool that is designed and continuously optimized. Menu engineering is the discipline that converts every menu decision into profit.

5 High priority
13 Complementary
18 Block total
Key concepts

The terms you must master

Menu Engineering

Methodology that analyzes each dish by profitability and popularity. Classifies into Stars, Workhorses, Puzzles and Dogs.

menu engineering restaurant

Menu Design

Practical application of menu engineering to dish design and positioning on physical or digital menus.

menu design hospitality

Contribution Margin

Difference between selling price and ingredient cost. What each dish contributes to cover fixed costs and generate profit.

contribution margin dish restaurant

Seasonal Menu

Menu that rotates according to the season. Reduces food cost (seasonal produce is cheaper), generates novelty and builds loyalty.

seasonal menu restaurant advantages

Daily Set Menu

Complete set menu offering at a fixed price, typical for the lunch segment. Tight margins that require maximum cost control.

daily set menu legal price spain
Menu and Product Engineering — professional restaurant management

Every concept on this list is a lever for improvement in your restaurant. Mastering them is the difference between managing with criteria or improvising.

Chef John Guerrero · ChefBusiness

All terms

Complete glossary of menu and product engineering

M

Signature Dishes

High popularity + high profitability. The best dishes on the menu. Maximize their placement and communication.

M

Workhorses

High popularity + low profitability. They sell a lot but leave little margin. Keep them but optimize their cost.

C

Puzzle Dishes

Low popularity + high profitability. They leave good margin but sell poorly. Improve their menu positioning.

C

Dog Dishes

Low popularity + low profitability. Neither sell well nor leave margin. Candidates for elimination or complete reformulation.

M

Popularity Analysis

Study of the sales frequency of each dish relative to the total. Foundation of menu engineering along with contribution margin.

M

List Price

Public Selling Price, VAT included. In hospitality: food at 10%, alcohol at 21%.

M

Psychological Pricing

Price setting technique based on perception. 14.90 EUR is perceived as lower than 15 EUR. Round prices in fine dining.

M

Tasting Menu

Fixed offering of several dishes in reduced format. Allows showcasing the kitchen and controlling food cost with precision.

M

Wine List

Wine selection organized by type, region or price. Beverage cost on wines is low (15-25%), making it a profitability lever.

M

Wine Pairing

Harmonious combination of wine (or beverage) with a dish. Sophisticated upselling tool that elevates the experience and the check average.

M

Dish Description

Text accompanying each dish on the menu. A good description sells; a bad one creates doubt and slows down ordering.

M

Menu Psychology

Application of behavioral principles to menu design: dish placement, absence of € symbol, use of anchors.

M

Menu Layout

Visual distribution of elements in the menu: where the eye looks first, how to group dishes, where to place the most profitable ones.

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Complete glossary

Other glossary blocks

Finance and Profitability → Opening & Pre-Operations → Operations & Kitchen → Staff and Human Resources → Marketing, Sales and Customer → Business Model and Strategy → Legal, Tax & Regulatory → Technology and Digitalization → Sustainability and Trends → Space, Design and Physical Experience → Diagnosis, Audit and Methodology → Investment, F&B and International Expansion → Types of Food Service Concept →

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FAQ

FAQ: menu and product engineering

What is menu engineering and how is it applied in a restaurant?
It is a methodology that analyzes each dish based on its popularity (sales frequency) and profitability (contribution margin). The result classifies each dish into Stars, Workhorses, Puzzles or Dogs, and that guides menu decisions, pricing and communication.
How often should I review my menu?
At least every quarter. A static menu is a menu that loses money: ingredient costs change, customer preferences evolve and the competition moves. The seasonal menu is the best tool to keep profitability high.
How to set the correct price for a dish?
First calculate the real food cost with a recipe costing sheet. Then apply the multiplier according to your segment (x3 to x4 for casual dining, x4 to x5 for fine dining). Then adjust with psychological pricing and menu positioning. Never set prices by intuition or by copying the competition.

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