{"id":6021,"date":"2025-03-05T19:38:52","date_gmt":"2025-03-05T19:38:52","guid":{"rendered":"https:\/\/www.getcraver.com\/menu-engineering\/"},"modified":"2025-10-23T09:02:13","modified_gmt":"2025-10-23T16:02:13","slug":"menu-engineering","status":"publish","type":"post","link":"https:\/\/www.getcraver.com\/blog\/menu-engineering\/","title":{"rendered":"Coffee Shop Menu Engineering: The Science of Selling More Without Raising Prices"},"content":{"rendered":"\n<p>Menu engineering is a way for coffee shop owners and operators to maximize the profitability of their menu \u2014 both overall and on an item-by-item basis.&nbsp;<\/p>\n\n\n\n<p>In practice, menu engineering consists of isolating each of your coffee shop\u2019s menu items, assessing the profitability and popularity of each item, then using that data to optimize your menu and improve your business\u2019s bottom line.<\/p>\n\n\n\n<p><em>(But don\u2019t worry \u2014 we\u2019ll tell you more about those steps in, like, 10 sentences.)<\/em><\/p>\n\n\n\n<p><em><!--more--><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why does menu engineering matter?&nbsp;<\/h2>\n\n\n\n<p>Now, at its core, menu engineering is designed to help you improve your coffee shop\u2019s profitability\u2026 but that\u2019s not <em>all<\/em> it can do.<\/p>\n\n\n\n<p>Other benefits of menu engineering include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span><span><strong><span>More <\/span><\/strong><\/span><a href=\"https:\/\/www.craverapp.com\/blog\/restaurant-marketing-strategy\"><strong>strategic marketing efforts<\/strong><\/a><span><strong> \u2014<\/strong> Once you know which menu items are the most profitable and popular, you can make more strategic decisions on which items to push (and which ones to pull back on). <\/span><\/span><\/li>\n\n\n\n<li><span><span><strong><span>Better customer satisfaction<\/span> \u2014<\/strong> Understanding the profitability and popularity of each menu item helps you pinpoint exactly what your guests like, guiding future efforts to give them more of what they love (like <\/span><a href=\"https:\/\/www.craverapp.com\/blog\/seasonal-cafe-menu-ideas\">seasonal specials<\/a><span>!).<\/span><\/span><\/li>\n\n\n\n<li><span><strong><span>Streamlining day-to-day operations<\/span><\/strong><span> \u2014 Knowing which items are your menu\u2019s \u201cbreadwinners\u201d can help you streamline your daily operations, reducing your ingredient costs, need for labor, and time spent on prep.<br><\/span><\/span><\/li>\n<\/ul>\n\n\n\n<div class=\"separators-custom-box  \"  style='background-color: #fff8f1;'>\n\n\t\n\n\t\t\t\t\t<div class=\"cta_title\" \n\t\t\tstyle='color:#000000;'\t\t\t>Easier menu engineering \u2014 and a more profitable menu \u2014 is just one download away.<\/div>\n\t\t\n        \n\t\t\t\t\t<a href=\"#Download\"\n\t\t\t\t \t\t\t\tstyle=\"background-image: linear-gradient(to left, rgb(217,58,1), rgb(239,100,16));\"\n\t\t\t\tclass=\"\"\n\t\t\t>\n\t\t\t<span class=\"\" \n\t\t\tstyle='color:#ffffff;'\t\t\t>\n\t\t\t\tDownload The Menu Matrix\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t\n\t<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">The 5 steps of menu engineering<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span>Step 1 \u2014 Choose a time frame to focus your menu analysis<\/span><\/h3>\n\n\n\n<p>The first step of menu engineering is picking a specific time frame to guide you through the entire process.<\/p>\n\n\n\n<p>Narrowing your exploration to a specific time frame or window is key to successful menu engineering for two main reasons.&nbsp;<\/p>\n\n\n\n<p>First, it helps you focus your efforts by exploring the profitability and popularity of a <em>specific <\/em>menu item during a <em>specific<\/em> time.&nbsp;<\/p>\n\n\n\n<p>Think about it like trying to find a needle in a haystack. You can search the entire haystack, blindly digging around until the needle finds you (<em>ouch<\/em>). Or, you can split the haystack into easier-to-manage pieces, strategically searching for the needle and using fewer Band-Aids.&nbsp;<\/p>\n\n\n\n<p>The latter is what picking a time frame helps you do.&nbsp;<\/p>\n\n\n\n<p>Second, it highlights less obvious (but incredibly helpful) performance data about your menu items that an \u201call-time\u201d snapshot simply can\u2019t.&nbsp;<\/p>\n\n\n\n<p>Say you\u2019re looking at your coffee shop\u2019s Pumpkin Spice Latte sales, outlined in the table below.<\/p>\n\n\n\n<figure class=\"wp-block-table alignleft\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Month <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Jan<\/td><td class=\"has-text-align-center\" data-align=\"center\">Feb <\/td><td class=\"has-text-align-center\" data-align=\"center\">Mar<\/td><td class=\"has-text-align-center\" data-align=\"center\">Apr<\/td><td class=\"has-text-align-center\" data-align=\"center\">May<\/td><td class=\"has-text-align-center\" data-align=\"center\">Jun<\/td><td class=\"has-text-align-center\" data-align=\"center\">Jul<\/td><td class=\"has-text-align-center\" data-align=\"center\">Aug<\/td><td class=\"has-text-align-center\" data-align=\"center\">Sept<\/td><td class=\"has-text-align-center\" data-align=\"center\">Oct<\/td><td class=\"has-text-align-center\" data-align=\"center\">Nov<\/td><td class=\"has-text-align-center\" data-align=\"center\">Dec<\/td><\/tr><tr><td><strong>PSLs Sold <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">0<\/td><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">0<\/td><td class=\"has-text-align-center\" data-align=\"center\">0<\/td><td class=\"has-text-align-center\" data-align=\"center\">0<\/td><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">15<\/td><td class=\"has-text-align-center\" data-align=\"center\">25<\/td><td class=\"has-text-align-center\" data-align=\"center\">10<\/td><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If you try to explore menu engineering based on the<em> entire year,<\/em> you\u2019d probably deduce that your PSL was a total bust \u2014 after all, you only sold an average of 5 a month, right? But, if you explore a narrower time frame, like Q3 on its own, you\u2019d realize that your PSL was <em>actually <\/em>a seasonal slam dunk.<\/p>\n\n\n\n<p>So, before you go any further in the menu engineering process, pick a specific time frame and stick to it.&nbsp;<\/p>\n\n\n\n<p>It\u2019s the only way to get anything meaningful out of this exercise!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span>Step 2 \u2014 Calculate your menu items\u2019 profitability and popularity<\/span><\/h3>\n\n\n\n<p>The second step of menu engineering is calculating how profitable <em>and<\/em> popular each of your menu items is.<\/p>\n\n\n\n<p>This step is a \u201cmust\u201d because you can\u2019t move on to any of menu engineering\u2019s profit-building steps without knowing which menu items are the most profitable and popular in the first place.&nbsp;<\/p>\n\n\n\n<p>(<em>And profit is really the whole point of menu engineering in the first place!<\/em>)&nbsp;<\/p>\n\n\n\n<p>There are three calculations involved in figuring out profitability and popularity:\u00a0<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Calculation 1: Food cost per menu item<\/h4>\n\n\n\n<p>This calculation helps you understand what your coffee shop spends to make each menu item, including the cost of ingredients, ingredient delivery fees, packaging, etc.&nbsp;<\/p>\n\n\n\n<p><em>Ingredient costs + purchasing costs = food cost per menu item<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Calculation 2: Menu item contribution margin&nbsp;<\/h4>\n\n\n\n<p>This calculation helps you determine the profit for each item on your coffee shop\u2019s menu. You\u2019ll need to have two numbers handy to calculate your menu item\u2019s contribution margin: food cost per menu item (the first calculation in this section) and price per menu item.&nbsp;<\/p>\n\n\n\n<p><em>Price per menu item \u2014 food cost per menu item<\/em> <em>= menu item contribution margin (or profit)<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Calculation 3: Menu item popularity&nbsp;<\/h4>\n\n\n\n<p>This \u201ccalculation\u201d \u2014 or, more accurately, this \u201cobservation\u201d<em> <\/em>\u2014 uses different data types to help you identify your coffee shop\u2019s most popular menu items. Both <a href=\"https:\/\/www.surveymonkey.com\/mp\/quantitative-vs-qualitative-research\/\"><span>quantitative and qualitative data<\/span><\/a> can help determine menu item popularity, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sales stats from your POS system showing how many of a certain menu item were sold during a specific period <em>(quantitative) <\/em><\/li>\n\n\n\n<li><em><span><span>First-hand data from your front-of-house staff about which items they\u2019ve been selling more or less of recently <\/span><span>(qualitative)<\/span><\/span><\/em><\/li>\n<\/ul>\n\n\n\n<div class=\"separators-custom-box  \"  style='background-color: #fff8f1;'>\n\n\t\n\n\t\t\t\t\t<div class=\"cta_title\" \n\t\t\tstyle='color:#000000;'\t\t\t>Pinpoint your menu\u2019s Stars with our free, easy-to-use menu engineering template.<\/div>\n\t\t\n        \n\t\t\t\t\t<a href=\"#Download\"\n\t\t\t\t \t\t\t\tstyle=\"background-image: linear-gradient(to left, rgb(217,58,1), rgb(239,100,16));\"\n\t\t\t\tclass=\"\"\n\t\t\t>\n\t\t\t<span class=\"\" \n\t\t\tstyle='color:#ffffff;'\t\t\t>\n\t\t\t\tDownload The Menu Matrix\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t\n\t<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span>Step 3 \u2014 Categorize your menu using the Menu Matrix<\/span><\/h3>\n\n\n\n<p>After costing your menu, it\u2019s time to categorize your menu items using the Menu Matrix.&nbsp;<\/p>\n\n\n\n<p>The Menu Matrix is a tool that helps coffee shop owners and operators organize their menu items based on each item\u2019s popularity and profitability. Depending on each item\u2019s popularity and profitability, it\u2019s assigned to one of four quadrants in the Matrix:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><em><strong>Plowhorse \u2014 <\/strong>for menu items with high popularity and low profitability<\/em><\/li>\n\n\n\n<li><em><strong>Star \u2014<\/strong> for menu items with high popularity and high profitability<\/em><\/li>\n\n\n\n<li><em><strong>Dog&nbsp; \u2014&nbsp;<\/strong> for menu items with low popularity and low profitability<\/em><\/li>\n\n\n\n<li><em><strong>Puzzle&nbsp; \u2014 <\/strong>for menu items with low popularity and high profitability<\/em><\/li>\n<\/ol>\n\n\n\n<p>Then, after you\u2019ve categorized every one of your menu items as a Plowhorse, Star, Dog, or Puzzle, you can start making strategic, Matrix-informed menu changes that maximize profits.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span><img decoding=\"async\" src=\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/05\/AdobeStock_702266461.jpeg\" width=\"6000\" height=\"3363\" loading=\"lazy\" alt=\"Coffee shop engineered menu featuring best selling coffees  \"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span>Step 4 \u2014 Maximize profits with menu engineering strategies<\/span><strong>&nbsp;<\/strong><\/h3>\n\n\n\n<p>How your coffee shop leverages menu engineering to maximize profits is unique to you, your offerings, and your long-term goals.&nbsp;<\/p>\n\n\n\n<p>But, that being said\u2026<\/p>\n\n\n\n<p><span>There <\/span><em><span>are<\/span><\/em><span> several high-level strategies coffee shops of all shapes and sizes will generally find effective \u2014 no matter what\u2019s on your newly engineered menu.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Improve the profitability of your menu\u2019s Plowhorses by:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Substituting a lower-cost ingredient in a Plowhorse (or Plowhorses) to reduce the item\u2019s food cost while increasing its profit\n<ul class=\"wp-block-list\">\n<li><em><strong>Example: <\/strong>switch your Plowhorse\u2019s main ingredient to something you can order in bulk for cheaper<\/em><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Assessing your kitchen prep processes for a Plowhorse item (or items) to identify profit-hurting issues like waste or yield\n<ul class=\"wp-block-list\">\n<li><em><strong>Example: <\/strong>use a digital coffee scale to ensure consistent Plowhorse portions<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Maximize the value of your menu\u2019s Stars by:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Putting your Star (or Stars) in your menu\u2019s <a href=\"https:\/\/pos.toasttab.com\/blog\/on-the-line\/psychology-of-restaurant-menu-design-infographic\"><span>Golden Triangle<\/span><\/a>, increasing the number of guests likely to spot it while browsing\n<ul class=\"wp-block-list\">\n<li><em><strong>Example: <\/strong>draw attention to your Star with a \u201cfeatured\u201d spot on your menu&nbsp;<\/em><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Highlighting your Star(s) in a social media or <a href=\"https:\/\/www.craverapp.com\/blog\/restaurant-email-marketing\"><span>email marketing campaign<\/span><\/a> that emphasizes its best-selling features\n<ul class=\"wp-block-list\">\n<li><em><strong>Example:<\/strong> regularly promo your Star(s) in your coffee shop\u2019s newsletter&nbsp;<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Boost the popularity of your menu\u2019s Puzzles by:&nbsp;<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Offering a limited-time promotion or discount on your Puzzle (or Puzzles), enticing guests to come and try the item sooner rather than later\n<ul class=\"wp-block-list\">\n<li><em><strong>Example:<\/strong> invite customers to try a Puzzle for 50% off after 5 PM&nbsp;<\/em><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Improving the visual appeal of the Puzzle(s) through better product photos or a more engaging item description\n<ul class=\"wp-block-list\">\n<li><em><strong>Example: <\/strong>try replacing Puzzle photos that aren\u2019t visually exciting<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Evaluate the potential of your menu&#8217;s Dogs by:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reinventing a Dog item (or items) to test on your guests, evaluating whether the item just needed a makeover or it truly needs to go\n<ul class=\"wp-block-list\">\n<li><em><strong>Example: <\/strong>test out a Dog item iced instead of hot (or vice versa)&nbsp;<\/em><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Transforming an \u201cevergreen\u201d item into a \u201climited-time\u201d item, so you don\u2019t have to spend as much on Dog-item(s) ingredients\n<ul class=\"wp-block-list\">\n<li><em><strong>Example:<\/strong> limit Dog items to when the ingredients are in season&nbsp;<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span>Step 5 \u2014 Evaluate performance and continuously optimize<\/span><\/h3>\n\n\n\n<p>After your first round of menu engineering is complete \u2014 and you\u2019ve got a few trial months under your belt \u2014 you can start evaluating (and optimizing) your reworked offers.&nbsp;<\/p>\n\n\n\n<p>To do this, you can revisit some of the calculations we introduced in Step 2, exploring the food cost, menu contribution, and popularity of your re-engineered menu items during the trial. Once you have those calculations, ask yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Did any menu items have a contribution margin increase or decrease?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Did any menu items\u2019 popularity increase or decrease?<\/li>\n<\/ul>\n\n\n\n<p>If a menu item\u2019s contribution margin or popularity decreased (or didn\u2019t increase as much as you\u2019d like), don\u2019t worry \u2014 menu engineering isn\u2019t limited to one-time use! As you gather more up-to-date profit and popularity data, you can (and <em>should<\/em>)<em> <\/em>take another shot at menu engineering.<\/p>\n\n\n\n<p>And remember: success isn\u2019t linear, and neither is menu engineering!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Start Engineering Your Menu With Craver\u2019s Menu Matrix<\/h2>\n\n\n\n<p>Ready to give menu engineering a shot?<\/p>\n\n\n\n<p>We\u2019ve got a little something to help you get started!&nbsp;<\/p>\n\n\n\n<p>Craver\u2019s Coffee Shop Menu Matrix is a free, downloadable template, designed to make categorizing your coffee shop\u2019s Plowhorses, Stars, Puzzles, and Dogs fast \u2018n\u2019 easy.&nbsp;<\/p>\n\n\n\n<p>We\u2019ve also added recommendations for each Matrix category, sharing data-driven tips for everything from maximizing your Stars to analyzing your Dogs.&nbsp;<\/p>\n\n\n\n<p>(Betcha never thought you\u2019d read a sentence like <em>that<\/em> in your life!)&nbsp;<\/p>\n\n\n\n<p>Mastering menu engineering is within reach \u2014 get your Template copy below!&nbsp;<\/p>\n\n\n<div class=\"m-form \"  style='--columns-ratio: 50%;'>\n\n\t\t<a id=\"Download\"><\/a>\n\t\n\t    \n    <div class=\"m-form__container container\" style=\"\">\n\n        <div class=\"l-form l-form-v3 order-default\">\n\n            <div class=\"l-form__col l-form__form\">\n\t\t        \n\n\t<div class=\"c-form\">\n\t\t<div class=\"c-form__embed\">\n\t\t\t                <div id=\"hubspot-form-1\" class=\"c-contact hubspot-form\">\n                    <script>\n                        document.addEventListener(\"DOMContentLoaded\", function() {\n                            if (typeof hbspt !== 'undefined' && hbspt.forms) {\n\n                                hbspt.forms.create({\n                                    portalId: \"4732366\", \/\/ this is your portal id\n                                    formId: \"d34c5dba-d0e2-44d7-ad18-132d673d683d\", \/\/ this is the form id\n                                    target: 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your&#8230;<\/p>\n","protected":false},"author":16,"featured_media":6022,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[98],"tags":[13,16],"class_list":["post-6021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Coffee Shop Menu Engineering: The Science of Selling More Without Raising Prices<\/title>\n<meta name=\"description\" content=\"Maximize the profitability of your cafe, both overall and on an item-by-item basis, with strategic menu engineering.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.getcraver.com\/blog\/menu-engineering\/\" \/>\n<meta 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