Menu Engineering: A Model Including Labor

Stephen M. LeBruto · William J. Quain · Alyssa J. Ashley

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Supply Chain and Inventory Management Management and Optimization Techniques Operations Management Techniques

Abstract

Menu engineering is a methodology to classify menu items by their contribution margin and popularity. The process discounts the importance of food cost percentage, recognizing that operators deposit cash, not percentages. The authors raise the issue that strict application of the principles of menu engineering may result in an erroneous evaluation of a menu item, and also may be of little use without considering the variable portion of labor. They describe an enhancement to the process by considering labor.

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2009Multi‐factor menu analysis using data envelopment analysis 1997Using the contribution margin aspect of menu engineering to enhance financial results 2016Menu engineering and activity-based costing 2009Menu Engineering Using Activity-Based Costing: An Exploratory Study Using a Profit Factor Comparison Approach 2021Approaches for restaurant revenue management 1998Profit measurement of menu items In Hong Kong's chinese restaurants 2008The Application of Activity-Based Costing in a Quick Service Restaurant 2020Menu engineering re-engineered: Accounting for menu item substitutes in pricing and menu placement decisions

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