What methods can you use to evaluate menu item popularity?

1 Sales data

One of the simplest and most reliable methods to evaluate menu item popularity is to analyze your sales data. You can use your point-of-sale (POS) system, receipts, invoices, or inventory records to track how many units of each menu item you sold in a given period. You can also compare the sales data across different seasons, days, times, or locations to identify trends and patterns. Sales data can tell you which menu items are your best-sellers, which ones are your worst-sellers, and which ones have potential for improvement.

2 Contribution margin

Another method to evaluate menu item popularity is to calculate the contribution margin of each menu item. The contribution margin is the difference between the selling price and the variable cost of a menu item. It represents how much profit each menu item contributes to your overall revenue. You can use the contribution margin to rank your menu items by profitability and to determine which ones are worth keeping, modifying, or eliminating. You can also use the contribution margin to set your menu prices based on your target profit margin and customer demand.

3 Menu engineering

A more advanced method to evaluate menu item popularity is to use menu engineering. Menu engineering is a technique that combines sales data and contribution margin to classify your menu items into four categories: stars, plowhorses, puzzles, and dogs. Stars are high-profit and high-popularity items that you should promote and highlight on your menu. Plowhorses are low-profit and high-popularity items that you should consider raising the price or reducing the portion size. Puzzles are high-profit and low-popularity items that you should try to increase the demand or visibility. Dogs are low-profit and low-popularity items that you should eliminate or replace with better options.

4 Customer feedback

A complementary method to evaluate menu item popularity is to collect customer feedback. You can use surveys, comment cards, online reviews, social media, or focus groups to gather information about your customers' preferences, satisfaction, and expectations. You can also ask your customers to rate each menu item on a scale of 1 to 5 or to rank them in order of preference. Customer feedback can help you understand the reasons behind your menu item popularity and to identify the strengths and weaknesses of your menu offerings.

5 Menu testing

A final method to evaluate menu item popularity is to conduct menu testing. Menu testing is a process of experimenting with different menu items, prices, descriptions, layouts, or designs to see how they affect customer behavior and sales performance. You can use methods such as A/B testing, split testing, or multivariate testing to compare different versions of your menu and to measure the results. Menu testing can help you optimize your menu item popularity and profitability by testing your assumptions and hypotheses.