Menu matrix calculator

How to use it

1. 1Type your figures into the calculator. Nothing you type is uploaded or stored. The answer is worked out in your browser.
2. 2Read the result and its caption. The assumptions are shown on the screen beside the number.
3. 3Save your figures once in the back office. Then this screen, and every other one, answers for your shop instead of a generic one.

What it does

• For each item we subtract cost from price. That is the profit per item in dollars. We use dollars, not percent, because dollars pay the rent.
• We find the middle value (the median) of profit per item, and the median of units sold per week. We split the chart at those two lines.
• Items above both lines are Stars. High sales but low profit are Workhorses. High profit but low sales are Puzzles. Low on both are Dogs.
• We use the median, not the average. One big seller would pull the average so far that every other item lands in one group.
• An item priced below cost keeps its negative profit. Some owners do this on purpose to bring people in.

Common questions

What is a menu engineering matrix?

A chart that plots each menu item by profit per item and units sold. Split at the middle of each, it gives four groups: Stars, Workhorses, Puzzles and Dogs. Each group has a clear action: feature, reprice, promote or cut.

How many menu items do I need to enter?

At least six or seven. With three items the split means little. Your whole menu is best, but the top twenty sellers usually tell the same story.

What should I do with a workhorse (plowhorse) item?

Raise the price a little, or cut the cost a little. Never both at once, and never by much. Workhorses sell because of their price, so a big increase can push them into the Dog group.

Should I always remove the dogs from my menu?

No. Some have a job: a kids option, a vegan option, the dish a regular always orders. Cut the ones with no job. Keep the ones that bring a table in.

Should I use margin percent or profit in dollars?

Dollars. A 60% margin on a $4 coffee earns $2.40. A 30% margin on a $30 steak earns $9. This calculator uses profit in dollars per item.

Does menu engineering work for a salon or clinic?

Yes. Use treatments in place of dishes, and product plus chair time in place of food cost. The math is the same. Service businesses often have wider profit gaps between items, so the chart is often clearer.

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