Menu engineering: how to find your Stars, Plowhorses, Puzzles and Dogs
Updated October 20, 2026
Menu engineering is a way to judge every dish on your menu by two numbers: how often it sells and how much money it leaves after food cost. Each dish lands in one of four boxes: Stars (popular and profitable), Plowhorses (popular, less profitable), Puzzles (profitable but slow) and Dogs (neither). You then change prices, recipes and the menu itself so more guests order the dishes that pay. The method was developed by Michael Kasavana and Donald Smith at Michigan State University in the early 1980s, and you can run it on one month of sales in about 20 minutes.
In short
- Two inputs per dish: contribution margin (menu price − food cost per portion) and the number sold in the period.
- Two lines: a dish is popular if it sells at least 70% of an equal share; it is profitable if its margin is at or above the average margin per dish sold.
- Four classes: Stars, Plowhorses, Puzzles, Dogs, each with its own fix.
- Run it free: the menu engineering matrix does the arithmetic in your browser, in any currency.
What is menu engineering?
Menu engineering is a menu analysis method that ranks dishes by contribution margin, the dollars a dish leaves after its ingredients, rather than by food cost percentage. Kasavana, writing for the American Hotel & Lodging Educational Institute in 2025, describes the four categories this way:
| Class | Popularity | Profitability | In one line |
|---|---|---|---|
| Star | High | High | Your best dishes. Protect them. |
| Plowhorse | High | Low | Guests love them, but each one leaves less. |
| Puzzle | Low | High | Pays well, but too few people order it. |
| Dog | Low | Low | Takes space on the menu and in the walk-in. |
The point of the method is the switch from percentages to dollars. You can't deposit a food cost percentage; you deposit margin.
The menu engineering formulas
Work on one menu section at a time (mains with mains, starters with starters) and one period (usually a month).
| Figure | Formula |
|---|---|
| Contribution margin (CM) | Menu price − food cost of one portion |
| Total CM of a dish | CM × number sold |
| Menu mix % | Number of that dish sold ÷ all dishes sold in the section |
| Profit line (average CM) | Total CM of the section ÷ all dishes sold |
| Popularity line | (100% ÷ number of dishes) × 70% |
The popularity line is the part people get wrong. An "equal share" with 8 dishes is 12.5% each. Kasavana and Smith's rule counts a dish as popular once it reaches 70% of that share, so with 8 dishes the line is 12.5% × 0.7 = 8.75%. With 10 dishes it is 7%; with 5 dishes, 14%.
The profit line is a weighted average: dishes that sell more count more. Don't just average the prices.
Worked example: 8 mains, one month
A casual American restaurant reviews its mains. These are illustrative numbers (the same ones the free tool starts with), not a benchmark.
| Dish | Price | Food cost | Sold | CM | Total CM | Menu mix | Food cost % |
|---|---|---|---|---|---|---|---|
| Classic burger | $14.50 | $4.60 | 420 | $9.90 | $4,158 | 28.0% | 31.7% |
| Crispy chicken sandwich | $13.00 | $3.90 | 310 | $9.10 | $2,821 | 20.7% | 30.0% |
| Steak frites | $26.00 | $10.40 | 90 | $15.60 | $1,404 | 6.0% | 40.0% |
| Salmon bowl | $19.00 | $6.10 | 140 | $12.90 | $1,806 | 9.3% | 32.1% |
| Chicken Caesar salad | $12.00 | $3.20 | 160 | $8.80 | $1,408 | 10.7% | 26.7% |
| Mac and cheese | $9.00 | $2.10 | 260 | $6.90 | $1,794 | 17.3% | 23.3% |
| Fish tacos | $15.00 | $4.20 | 70 | $10.80 | $756 | 4.7% | 28.0% |
| Veggie wrap | $10.00 | $3.60 | 50 | $6.40 | $320 | 3.3% | 36.0% |
| Total | 1,500 | $14,467 | 100% | 30.9% |
Sales were $20,930 (each price × number sold), so the section ran a 30.9% food cost.
- Profit line: $14,467 ÷ 1,500 = $9.64 per dish sold.
- Popularity line: 100% ÷ 8 × 70% = 8.75% of mains sold.
Now compare each dish with both lines:
| Margin below $9.64 | Margin $9.64 or more | |
|---|---|---|
| Sold 8.75% or more | Plowhorses: chicken sandwich ($9.10, 20.7%), Caesar salad ($8.80, 10.7%), mac and cheese ($6.90, 17.3%) | Stars: classic burger ($9.90, 28.0%), salmon bowl ($12.90, 9.3%) |
| Sold under 8.75% | Dog: veggie wrap ($6.40, 3.3%) | Puzzles: steak frites ($15.60, 6.0%), fish tacos ($10.80, 4.7%) |
Two things a food-cost-only review would get wrong:
- Steak frites has the worst food cost on the menu, 40%, and the best margin, $15.60. Cutting it to "fix food cost" would throw away the dish that leaves the most per plate. The matrix says: sell more of it.
- Mac and cheese has the best food cost, 23.3%, and nearly the lowest margin, $6.90. It's a Plowhorse: keep it, but pair it with something that earns more.
What moving guests would be worth: if 30 of the 260 mac-and-cheese guests a month chose steak frites instead, the month's margin would rise by 30 × ($15.60 − $6.90) = $261, with the same number of guests.
What to do with each class
| Class | What to do | What not to do |
|---|---|---|
| Stars | Best spot on the menu, consistent recipe and portion, staff know them. Test a small price rise; demand is strong. | Don't change the recipe to save a few cents. |
| Plowhorses | Lower the cost (portion of the protein, garnish, a cheaper side), raise the price a little, or pair them with a high-margin side or drink. Move them to a less prominent spot. | Don't remove them; they bring people in. |
| Puzzles | Make them easier to choose: a better spot, a clearer name and description, a photo, a staff recommendation, or suggest them next to a popular dish. If they still don't move, check the price. | Don't discount them so much that they turn into Plowhorses. |
| Dogs | Remove them, or rework the recipe and price. Keep one only for a reason: a regular's favourite, a dietary option a group needs. | Don't keep a dish because it has always been there. |
These are the standard practices, not laws. Each change is a test: change one thing, wait a month, and run the matrix again.
How to do menu engineering, step by step
- Pick a section and a period: one section (mains), one full month, the same for every dish.
- Cost every dish: the food cost of one portion from the recipe and your latest invoices. The recipe cost calculator does this per ingredient.
- Pull the number sold: the item sales report from your POS or ordering system for that month.
- Work out margin and mix: CM = price − food cost; mix = sold ÷ all sold. Or type the three numbers per dish into the menu engineering matrix.
- Draw the two lines: the average CM per dish sold, and (100% ÷ number of dishes) × 70%.
- Sort into the four boxes: Stars, Plowhorses, Puzzles, Dogs.
- Change one thing per dish: price, recipe, position, description, or remove it.
- Re-run next month: compare the boxes and the total margin, not just food cost.
How Menuthere helps
Menuthere is an ordering platform with 0% commission, and a few of its menu tools map straight onto the matrix:
- The number sold per dish.
Analyticslists every dish sold with its quantity and amount for any period, on every plan, including Free. Sizes of one dish are counted together. From Lite you can download the report. - Selling more Puzzles. Suggest dishes that go together shows chosen dishes when a customer adds another to the cart (a side with a burger, steak frites next to the salad), and works both ways. Mark as top dish highlights a dish on the menu. Both are on every plan.
- Changing prices without reprinting. Prices on your online menu and QR menu change the moment you save.
Put your Stars where customers order.
Limits of the classic matrix
- It ignores labor. A dish that takes 12 minutes of a cook's time and one that takes 2 count the same. A 1995 study in FIU Hospitality Review by LeBruto, Quain and Ashley added labor to the model for this reason.
- It compares dishes only with each other. A menu where every dish is underpriced still has Stars.
- It ignores how dishes interact. Removing a Dog can lose a group whose one vegetarian member orders it.
- Seasons and promotions distort one month. Use a normal month, or compare the same month a year apart.
- Food cost must be current. Re-cost dishes when supplier prices move; the food cost percentage guide shows how.
For pricing the dishes you keep, see how to price menu items and the menu price calculator; for what the whole menu earns, the restaurant profit margin guide. When you're ready to rebuild the menu itself, read how to make a restaurant menu, and for menu changes as one of several sales levers, how to increase restaurant sales. We also wrote about why item mix beats volume.
Frequently asked questions
What is menu engineering in simple terms?
It is a way to rank the dishes on your menu by how often they sell and how much money each leaves after food cost. Each dish becomes a Star, Plowhorse, Puzzle or Dog, and each class has its own fix.
What are the four categories of menu engineering?
Stars are popular with an above-average margin. Plowhorses are popular with a below-average margin. Puzzles have an above-average margin but don't sell enough. Dogs are below average on both.
How do you calculate the popularity line in menu engineering?
Divide 100% by the number of dishes in the section and multiply by 70%. With 8 dishes that is 12.5% × 0.7 = 8.75%. A dish that makes up at least 8.75% of the section's sales counts as popular.
What is contribution margin on a menu?
The menu price minus the food cost of one portion. A $14.50 burger with $4.60 of ingredients has a $9.90 contribution margin. Menu engineering ranks dishes by this dollar figure, not by food cost percentage.
Why not just use food cost percentage?
Because a low percentage can mean a small margin. In our example, mac and cheese runs a 23% food cost and leaves $6.90; steak frites runs 40% and leaves $15.60. Food cost percentage alone would favor the wrong dish.
How often should a restaurant do menu engineering?
Run it every few months and after any price, recipe or supplier change. Use a normal month, keep each result, and check whether the dishes you changed moved boxes.
Is there a free menu engineering template?
Yes. The Menuthere menu engineering matrix is free, needs no sign-up and works in any currency. Type each dish's price, food cost and number sold, then copy the result or download it as a CSV.
Sources (2)
- Michael L. Kasavana, "The power of menu engineering, part one", AHLEI (American Hotel & Lodging Educational Institute), 8 April 2025: https://ahlei.servsafebrands.com/resources-overview/news-and-insights/the-power-of-menu-engineering-part-one (read 20 Oct 2026): developed by Kasavana and Smith at Michigan State University; contribution margin = menu price − direct cost; Stars / Plowhorse / Puzzles / Dogs definitions.
- Stephen M. LeBruto, William J. Quain, Robert A. Ashley, "Menu Engineering: A Model Including Labor", FIU Hospitality Review 13(1), 1995: https://digitalcommons.fiu.edu/record/17973/files/V13n195e.pdf (PDF returns 403 to scripts; the 70% rule, the 8-item = 8.75% example and the labor extension read from the search-index excerpt and bibliographic records, 20 Oct 2026).