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💰 Financial · Rex's Toolbox

Menu Engineering Margin Calculator

Classify a dish as Star, Plowhorse, Puzzle, or Dog by margin and popularity.

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Rex says

Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

Result

Menu quadrant

Star

Contribution margin

$11.00

Margin vs. menu average

$2.00

Popularity index (100=avg)

133

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How to use this

  1. 1Enter item price ($).
  2. 2Enter item plate cost ($).
  3. 3Enter units sold last period.
  4. 4Enter menu average margin ($).
  5. 5Enter menu average units sold.
  6. 6Read your menu quadrant on the right — it updates as you type.
  7. 7Hit Share to keep the scenario or send it to someone.

About this calculator

Menu engineering is the classic Kasavana-Smith method for deciding what to promote, reprice, or cut. Every item gets scored on two axes: contribution margin in dollars (price minus plate cost) versus the average margin across your menu, and unit sales versus average popularity. Stars are high margin and high popularity — protect and feature these. Plowhorses are popular but low margin — they drive traffic but you need to either raise price slightly or cheapen the recipe without hurting quality. Puzzles are high margin but low popularity — reposition on the menu, rename, or feature as a special to build volume. Dogs are low margin and low popularity — cut them unless they serve a strategic purpose. This calculator runs one item against your menu averages and tells you which quadrant it lands in, plus the dollar margin gap versus your average performer, so you know exactly how much room there is to adjust price or cost.

FormulaContribution margin = price − plate cost. Compare to menu average margin and average units sold to place in quadrant.

Worked example

Using the values the calculator loads with:

Inputs

  • Item price: 16 $
  • Item plate cost: 5 $
  • Units sold last period: 240
  • Menu average margin: 9 $
  • Menu average units sold: 180

Results

  • Menu quadrant: Star
  • Contribution margin: $11.00
  • Margin vs. menu average: $2.00
  • Popularity index (100=avg): 133

What each field means

Inputs

Item price ($)
The item price used in the calculation, measured in $. Starts at 16 $ so you have a working example on load.
Item plate cost ($)
The item plate cost used in the calculation, measured in $. Starts at 5 $ so you have a working example on load.
Units sold last period
The units sold last period used in the calculation. Starts at 240 so you have a working example on load.
Menu average margin ($)
The menu average margin used in the calculation, measured in $. Starts at 9 $ so you have a working example on load.
Menu average units sold
The menu average units sold used in the calculation. Starts at 180 so you have a working example on load.

Results

Menu quadrant
Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Contribution margin
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Margin vs. menu average
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Popularity index (100=avg)
Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

What do I do with a Plowhorse?

Plowhorses are your volume drivers so don't kill them. Instead shave the plate cost with a cheaper garnish or portion tweak, or nudge price up 5-8% — customers rarely notice small increases on popular items they already love.

How many units count as 'popular' enough?

Use your own menu average as the bar, not an outside benchmark. An item selling above the mean units-per-period for its category counts as popular; below it counts as low popularity, regardless of the absolute number.

Should Dogs always be cut?

Not automatically. Some Dogs are cross-utilization items (an ingredient also used in a Star dish) or accommodate dietary restrictions that keep a table from walking. Cut Dogs that add prep complexity with no strategic payoff first.

How often should I run this analysis?

Quarterly for a stable menu, monthly during a new-menu rollout or after a big price change, so you catch shifts in customer behavior before a full season's sales data buries the signal.

Accuracy and limitations

  • Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
  • Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
  • This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

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APA
RevenueLab. (2026). Menu Engineering Margin Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/menu-engineering-margin
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<p>Source: <a href="https://www.revenuelab.fyi/toolbox/menu-engineering-margin" target="_blank" rel="noopener">Menu Engineering Margin Calculator — RevenueLab</a> (2026).</p>
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Source: [Menu Engineering Margin Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/menu-engineering-margin) (2026).
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