Menu Engineering: how to increase the profits of your Italian restaurant
Menu engineering is the science of designing and optimizing a restaurant's menu to maximize profitability. A Cornell University study shows that a properly designed menu can increase profits by 20-35% without increasing prices. For Italian restaurants in Switzerland, where margins are under pressure due to high operating costs, the use of menu engineering is crucial for economic sustainability.
In this way, the guide will teach you how to analyze each dish on your menu using scientific criteria of profitability and popularity, how to classify items as stars, plow horses, puzzles and dogs, how to redesign the layout to focus customer choices on high-margin options, and how to leverage strategic suppliers like LAPA to maintain competitive food costs without sacrificing quality.
The answer is clear: menu engineering is not an optional, but an indispensable tool for every restaurateur who wants to succeed in a competitive market like the Swiss one.
What is menu technology? Basics and methodology
Menu Engineering is an analytical method developed in the 1980s by professors Kasavana and Smith that combines contribution margin analysis with dish popularity to optimize a restaurant's gastronomic offering.
The two key parameters of menu technology:
- Profitability (contribution margin): The gross margin generated by each dish after deducting raw material costs (food costs). A price with a price of 28 CHF and a price of 9 CHF has a price of 19 CHF.
- Popularity (popularity index): The frequency with which a dish is ordered compared to the average. Calculation: (Number of Dish Sales / Total Category Sales) Ă— 100. A dish with a popularity >70% is considered very popular.
In summary, menu engineering identifies which dishes sell well and generate high margins (stars), which sell poorly but have high margins (puzzle), which sell well but have low margins (ploughhorses), and which sell poorly and generate low margins (dogs to be eliminated).
Menu design matrix: the 4 categories of dishes
Each menu item is classified into one of four categories in the menu engineering matrix based on profitability and popularity.
1. STARS – High profitability + high popularity
Starred dishes are the heart of the business: they sell well and generate excellent margins. Typical offers for Italian restaurants: burrata and ham pizza (CHF 22 margin, 85% popularity), authentic LAPA Carbonara with bacon (CHF 18 margin, 78% popularity).
Strategies for the stars: Maintain consistent prices and quality, highlight these dishes on the menu with spice boxes or symbols, always ensure that high-quality ingredients are available (the LAPA partnership ensures continuous supply) and train staff to actively suggest these dishes.
2. PLOW HORSES – Low profitability + high popularity
Dishes in high demand but with reduced margins. Examples: Pizza Margherita (margin 12 CHF, popularity 92%), Spaghetti Pomodoro (margin 14 CHF, popularity 81%). Important for volume, but not for profit.
Plow Horse Strategies: Increase price slightly (+1-2 CHF does not affect demand), reduce food costs with competitive LAPA suppliers (STG-Fiordilatte at optimal price), reduce portions by 10-15% while maintaining perception of quality, switch to less visible menu items.
3. PUZZLE – High profitability + low popularity
High margin dishes that are rarely ordered. Examples: risotto with black truffle (margin 28 CHF, popularity 18%), sliced ​​beef with porcini mushrooms (margin 24 CHF, popularity 22%).
Puzzle Strategies: Increase visibility through strategic positioning (top right corner of menu), add appetizing descriptions and storytelling, let staff suggest daily specials, reduce price by 10-15% to test elasticity of demand, and enhance dish presentation with professional photos.
4. DOGS – Low profitability + low popularity
Dishes that sell poorly and generate low margins. Examples: Basic mixed salad (margin 6 CHF, popularity 12%), minestrone (margin 8 CHF, popularity 9%).
Strategy for dogs: Delete it from the permanent menu, replace it with new high-margin proposals or change it radically (e.g. from mixed salad to Burrata DOP LAPA and ancient cherry tomato salad at the price of +8 CHF).
How to calculate profitability and popularity: practical method
Implementing menu engineering requires precise collection of sales and cost data. Here is the process step by step.
Step 1: Collect sales data (4 weeks)
For each dish, record: number of portions sold, sales price. Use your cash register system or manual cash registers. Minimum period: 4 weeks for representative data.
Step 2: Calculate the food cost of the dish
Lists ingredients with quantities and unit costs. Carbonara example: Guanciale Amatriciano PGI LAPA 80g (2.40 CHF), Pecorino Romano PDO LAPA 40g (1.80 CHF), organic eggs 2 (0.90 CHF), spaghetti 120g (0.50 CHF), black pepper (0.10 CHF). Total food cost: CHF 5.70. With Price 24 CHF → Contribution margin 18.30 CHF.
Step 3: Calculate your contribution margin
For each dish: Margin = Sales Price – Food Cost. Calculate the average margin for the category (e.g. all types of pasta). Classify the dishes: Margin >medium = high profitability, margin Formula: (Plate Sales / Total Category Sales) × 100. If you have 10 pastas and sell a total of 500 pastas in 4 weeks, a carbonara with 95 servings is popular: (95/500) × 100 = 19%. Popularity threshold: 70% of average. Average = 100/10 = 10%, so threshold = 7%. Carbonara is 19% more popular. Place each plate in the matrix: identify the stars, plow horses, puzzles, dogs.Step 4: Calculate popularity
Step 5: Construction of the matrix
Strategic menu design: psychology and layout
The design of the visual menu has a great influence on the contents of the world. Eye tracking studies show that the eye follows predictable paths.
The Golden Triangle
Once you have two menus, the eye moves first to the top center corner, then to the top right corner, and finally to the top left corner. This forms the “Golden Triangle” – zones of maximum visual attention. Place the stars and puzzles you want to promote here.
Psychological pricing techniques
- Remove currency symbols: Write “24” instead of “CHF 24.00” – you reduce the price and increase your costs by 12%
- Price again: For 1-2 days we cook at price (also: lobster 95 CHF), and another price (32-38 CHF) must be purchased from the machine
- Odd price: 11.90pm today 00.00am – normally valid for orders under 30 CHF
- Avoid price columns: Include prices in the description to avoid direct comparisons
Sales descriptions
Effective descriptions increase sales by 27%. The formula for success: origin + technology + benefit. Weak example: “Carbonara – pasta, eggs, bacon”. Strong example: “Authentic carbonara – handmade spaghetti with Guanciale Amatriciano IGP LAPA knuckles and 12 pieces of Pecorino Romano DOP – the review, the world has learned”. Optimal length: 25-40 words for premium dishes, 15-20 for basic dishes.
Viewing items
- Box and Borders: Mark your stars with colored boxes or decorative borders
- Symbols: Symbols for vegetarian, spicy, chef-prepared, DOP/IGP LAPA products
- Photos: Maximum 3-5 photos in total for iconic dishes: too many photos affect the perception of quality
- Font: Court titles in bold (12-14 points), descriptions (10-11 points), readability is essential
Optimize food costs with strategic suppliers
Controlling food costs is critical to maintaining healthy margins. Partnering with premium suppliers like LAPA allows you to balance quality and costs.
LAPA benefits for menu development
1. Competitive price for DOP/IGP products: Guanciale Amatriciano IGP at 28-32 CHF/kg compared to 38-45 CHF from other suppliers - 25% saving while maintaining certification and quality. Direct impact on carbonara margin: food costs from 6.80 to 5.70 CHF = +1.10 CHF margin per portion.
2.No minimum order quantity: Order optimal quantities without excess inventory. It reduces waste by 15-20% and frees up capital.
3. 24-48 hour delivery:Fast replenishment allows for quick turnaround: always fresh ingredients, consistent quality, satisfied customers, positive reviews.
4. Complete range of over 3000 products: A single offer for premium Italian ingredients - real logistics, short delivery times and direct delivery to be agreed.
5.Technical Support: LAPA provides detailed data sheets that detail yields, storage and optimal use, helping you accurately calculate food costs and reduce waste.
The restaurants listed in the LAPA have a low price range of 3-5% and at the same time a reasonable amount of quality. With an annual turnover of 600,000 CHF with 30% food costs, a saving of 3% = 5,400 CHF/year directly on the operating margin.
Upselling and cross-selling strategy
Menu engineering includes techniques to increase average ticket through strategic suggestions.
Efficiency in upselling
- Premium additions: Burrata Andria DOP LAPA +6 CHF, grated black truffle +8 CHF, extra crispy bacon +4 CHF – margin on additions 70–80%
- Examples of ingredients: “Do you drink Fiordilatte STG LAPA or Burrata DOP?” - 60% of the price for upgrade +5 CHF
- XL Portions: Offer the “Large Portion” option +30% quantity for +40% price – the additional margin is very high
Cross-selling strategy
- Wine pairing: Suggest a specific wine for each dish – increase wine sales by 35%, ticket +12-18 CHF
- Appetizers + first courses: “Our Burrata DOP LAPA is perfect for the taste of Carbonara” – Combi increases the average price by +15 CHF
- Dessert to share: “Tiramisu for two?” - Sales of desserts +40% compared to single portions
Employee training
The dining room staff must be ambassadors of menu technology. Monthly training on the following topics: starred dishes to suggest priority, storytelling of the LAPA DOP/IGP product ("our Guanciale Amatriciano comes from..."), non-invasive upselling techniques, knowledge of the margin (focus on profitable dishes). Employees incentivized to sell high-margin dishes increase profits by 8-12%.
Continuous monitoring and optimization
Menu development is not a one-time process, but a continuous cycle of analysis and improvement.
KPI for monthly monitoring
- Food cost%: Target: 28-32% for Italian restaurants. Over 35% = urgent intervention
- Average contribution margin: Total of all tableware ranges/number of plates sold. Trend monitoring
- Sales mix: % stars, plow horses, puzzles, dogs. Objective: 40% stars, 35% plow horses, 20% puzzles, 5% dogs
- Average ticket: Target: 35-45 CHF, depending on placement. Growth +2-3% per year with inflation
- Table rotation speed: Faster = more coverage = more sales with the same fixed costs
Quarterly menu review
At 3 months: Analyze 12 week new sales, read new menu design matrix, eliminate 1-2 worst dogs, test 2-3 new potential star dishes, adjust price for Plowhorse dishes (+5-8%), restart marketing for high potential puzzles.
A/B test pricing and descriptions
Test variants: Week 1-2: Truffle risotto for 34 CHF with short description. Week 3-4: Same risotto for 36 CHF with longer narration. Measure sales and overall margin. Implement successful variations. Over time, smaller detailed tests were performed that led to significant incremental improvements.
Case Studies: Menu Engineering in Action
Here are some Italian restaurants in Switzerland, where menus are available.
Case 1: Pizzeria with 80 seats in Zurich
Initial situation: 35 pizzas on the menu, food cost 34%, net margin 9%. Technical menu intervention: Menu of 22 reduced pizzas (13 dogs eliminated), 6 gourmet pizzas with LAPA burrata and premium ingredients repositioned in the Golden Triangle, price for 3 Plowhorses increased to 2 CHF, personal offers for upselling premium addition. Results after 6 months: food costs reduced to 29%, net margin increased to 14%, average ticket +4.20 CHF (from 36 to 40.20 CHF), monthly sales +18% with the same coverage.
Houses 2: 60-seat restaurant in Geneva
Initial situation: 48-course menu, high cooking complexity, waste 22%, food costs 37%. Intervention: 8-week sales analysis, identification of 18 dogs (37% of the menu), creation of a new menu with 28 dishes focused on stars and top performing horses, LAPA partnership for premium ingredients at optimal costs, redesign of the menu with professional photos of 3 iconic dishes. Results after 4 months: waste reduced by 12%, food costs by 31%, operational complexity -40%, gross margin +6 percentage points, TripAdvisor ratings +0.6 stars (from 3.9 to 4.5).
Frequently Asked Questions (FAQ)
How often do you like the menu with the updated menu?
The answer is: full analysis every 3 months, small monthly adjustments. Continuously collect sales data, thoroughly reanalyze the profitability/popularity matrix quarterly, and test incremental changes (1-3 flats per month) rather than total revolutions that confuse repeat customers. Seasonality requires adjustments: autumn/winter menu vs. spring/summer menu with seasonal LAPA products.
How do I get rid of repeat customers?
Before eliminating dishes with a loyal clientele, even if they are dogs, consider the following: if the margin is very low but sales are concentrated in a few VIP customers, keep them "off the menu" and order them on request. Introduces improved replacement dishes before replacing the old ones. Communicate the changes positively: “New season menu with fresh and premium LAPA ingredients”. Offer regular customers a free tasting of new offerings. Generally, initial resistance disappears within 2-3 weeks as new options are of higher quality.
Does menu design work for small restaurants or just chains?
The menu works perfectly for all restaurants and is more extensive. For small restaurants with low margins this is even more important. No expensive software is needed - for simple calculations Excel is sufficient. With 20-40 dishes on the menu, manual analysis takes only 3-4 hours per quarter. The benefits (food cost -3-5%, margin +4-6 points) generate additional thousands of francs every year, even for 40-50 seater restaurants. LAPA supports small restaurants with no minimum order value and individual advice.
What are the most common menu design mistakes?
Serious mistakes to avoid: 1) Focus only on the cost of food and ignore popularity: you eliminate dishes that customers love. 2) Changing too quickly: regular customers lose orientation. 3) Sacrificing quality for margin: Negative reviews cost more than savings. 4) The staff is not trained: waiters who do not know the dishes refuse to redesign the menu. 5) Inaccurate calculation of food costs: overestimation or underestimation distorts the entire analysis. 6) Seasonality ignored – truffles in August have prohibitive food costs. 7) Overly complex menu - over 40-45 dishes leads to inefficiency in the kitchen and increases waste.
How high is the quality and best quality of the season?
The key point is: partnerships with premium suppliers at competitive prices like LAPA. DOP/PGI certified ingredients at wholesale prices allow for better quality than competitors with better margins. Specific example: Carbonara with generic pancetta (cost 2.80 CHF, perception of quality 6/10) vs Carbonara with Guanciale Amatriciano PGI LAPA (cost 2.40 CHF via partnership, perception of quality 9/10, the price can be +3 CHF). Result: lower food costs, higher price, margin +3.60 CHF, more satisfied customers. Winning on all fronts.
Is there specific software for menu design?
To get started you will need Excel or Google Sheets. The basic template includes: columns for dish name, sales price, food cost, contribution margin, number of sales, and popularity percentage. Automatic formulas calculate averages and rankings. For restaurants with more than 150 pages per day, you can invest in integrated POS software like Lightspeed, Toast or Square, automatic checking and menu engineering. It costs 80-150 CHF/month, but the time savings and data accuracy justify the investment. LAPA provides its customers with free Excel templates.
Conclusion: menu engineering as a competitive advantage
Menu Engineering transforms your menu from a simple list of dishes into a strategic tool for maximizing profits. Restaurants that methodically apply menu engineering achieve margins 4-6 percentage points higher than their competitors, reduce waste by 15-25%, increase average ticket count by 12-20%, and improve customer satisfaction with offerings focused on winning dishes.
The pillars of success are: rigorous and continuous analysis of sales and cost data, classification of dishes in the profitability/popularity matrix, differentiated strategies for Stars, Horses, Puzzles, Dogs, psychologically optimized menu design, partnership with premium suppliers such as LAPA for certified ingredients at competitive costs, employee training on upselling and product storytelling techniques, monthly monitoring of KPIs and quarterly optimization.
LAPA is the ideal partner for menu engineering: over 3000 certified Italian DOP/IGP products with large-scale product specifications, with a better understanding of maximum flexibility, 24-48 hour delivery range for optimal rotation, technical support with detailed product sheet information, personal advice on the selection of optimal ingredients. Over 500 Swiss restaurants have LAPA with improved margins and quality.
Start your menu development journey today: Download the free LAPA analysis model, analyze the sales of the last 8 weeks, calculate the profitability/popularity matrix, identify quick profits (dogs to eliminate, stars to highlight), contact LAPA to optimize food costs while maintaining premium quality.
Contact your LAPA now: Free consultancy for menu design, Excel template for sales and margin analysis, DOP/IGP product samples to test new dishes, reserved restaurant prices.