CRM Menu Engineering & Development 1 — Questions and Answers
Question 1: In menu engineering, which category describes items with HIGH contribution margin but LOW popularity?
- Stars
- Plowhorses
- Puzzles (Correct answer)
- Dogs
Correct answer: Puzzles
Puzzles have high contribution margin but low sales volume, indicating they need better promotion, repositioning, or recipe refinement.
Question 2: What is the primary goal of menu engineering?
- To reduce the number of menu items
- To maximize overall profitability by analyzing item popularity and contribution margin (Correct answer)
- To ensure every item has an equal food cost percentage
- To feature only seasonal ingredients
Correct answer: To maximize overall profitability by analyzing item popularity and contribution margin
Menu engineering uses sales mix and profitability data to strategically position items and maximize total restaurant profit.
Question 3: In menu engineering, what does 'contribution margin' refer to?
- The percentage of revenue that covers food costs
- The total sales revenue of a menu item
- The dollar amount remaining after subtracting food cost from the selling price (Correct answer)
- The number of times an item is ordered per shift
Correct answer: The dollar amount remaining after subtracting food cost from the selling price
Contribution margin equals selling price minus food cost, representing what each sale contributes toward covering labor, overhead, and profit.
Question 4: A 'Star' in menu engineering is best described as an item that is:
- High popularity and high profitability (Correct answer)
- Low popularity and high profitability
- High popularity and low profitability
- Low popularity and low profitability
Correct answer: High popularity and high profitability
Stars are top performers — they sell frequently and generate strong contribution margins, making them the most desirable items on any menu.
Question 5: Which menu design technique draws customer attention to high-profit items?
- Using identical fonts for all items
- Listing items alphabetically by name
- Placing high-margin items in the upper right corner or using visual callouts (Correct answer)
- Removing all photographs from the menu
Correct answer: Placing high-margin items in the upper right corner or using visual callouts
Research shows the upper-right area of a two-panel menu naturally draws the eye first, making it the prime real estate for high-profit items.
Question 6: A 'Plowhorse' in menu engineering is characterized by:
- High food cost and very low sales volume
- High popularity but low contribution margin (Correct answer)
- Low popularity and low contribution margin
- High contribution margin and high popularity
Correct answer: High popularity but low contribution margin
Plowhorses are popular items that drive traffic but generate lower profit per sale, often due to high ingredient costs or underpricing.
Question 7: Which factor is NOT typically considered in a standard menu engineering analysis?
- Item popularity based on sales mix
- Contribution margin per item
- Age and condition of kitchen equipment (Correct answer)
- Food cost per menu item
Correct answer: Age and condition of kitchen equipment
Menu engineering focuses on sales data and financial metrics such as popularity and contribution margin, not the physical condition of kitchen equipment.
CRM Menu Engineering & Development 1
In menu engineering, which category describes items with HIGH contribution margin but LOW popularity?