How do I categorize menu items using menu engineering principles?

To categorize menu items using menu engineering principles, start by looking at each item’s profitability and popularity at the same time. Then group items into four standard categories so you know what to promote, protect, improve, or remove.

In practice, this is less about “gut feel” and more about a simple, repeatable way to decide which items deserve prime menu space and which ones need a rethink.

What “categorizing” means in menu engineering

Menu engineering is commonly used to sort menu items based on two signals:

• Profitability: how much gross profit an item contributes per sale (selling price minus ingredient cost).
• Popularity: how often the item sells compared to other items in the same section (starters vs starters, cocktails vs cocktails).

Once you have those two numbers, each item falls into one of four categories. This gives you a practical “next action” for every dish or drink.

The four menu engineering categories

Stars (high profit, high popularity)

These are your best performers. They sell often and make good money.

• Typical action: keep consistent quality, protect the recipe, and give them visible placement.
• Watch-outs: price increases should be careful and gradual so you don’t damage demand.

Puzzles (high profit, low popularity)

These are profitable items that aren’t getting ordered enough.

• Typical action: improve visibility (menu placement), clarify the description, rename if needed, and train staff on how to recommend it.
• Watch-outs: if it’s complicated to explain or unfamiliar, guests may skip it even if it’s great.

Plowhorses (low profit, high popularity)

These sell well but don’t deliver enough profit per sale.

• Typical action: adjust portion size, tighten the recipe cost, revise the price carefully, or add paid modifiers (extras, upgrades).
• Watch-outs: raising price too aggressively can push guests to cheaper alternatives or create complaints.

Dogs (low profit, low popularity)

These underperform on both measures.

• Typical action: consider removing, replacing, or keeping only if it serves a clear purpose (brand identity, dietary coverage, signature offering).
• Watch-outs: don’t keep “Dogs” just because the kitchen likes them—keep them only if they solve a real menu need.

How it’s typically done in most restaurants

A straightforward process most operators follow looks like this:

• Step 1: Choose the time window. Usually 4–12 weeks of sales, avoiding unusual periods unless you’re analyzing them on purpose.
• Step 2: Work section by section. Analyze burgers against burgers, cocktails against cocktails—mixing categories can distort popularity.
• Step 3: Calculate gross profit per item. Use a consistent recipe cost method so results are comparable.
• Step 4: Measure popularity. Count units sold and compare each item to the section average.
• Step 5: Assign each item to a category. Stars, Puzzles, Plowhorses, or Dogs.
• Step 6: Decide one clear action per item. Promote, reposition, reprice, rework, or remove.

Most teams review this regularly—often monthly or quarterly—because prices, supplier costs, and guest behavior change over time.

Real-world examples by business type

Restaurant example

Star: A chicken shawarma plate with strong sales and healthy margin → keep it prominent and consistent.

Puzzle: A higher-margin grilled sea bass that barely sells → improve the description, move it up the list, and have servers suggest it.

Plowhorse: A big pasta dish everyone orders but costs too much to produce → review portion, renegotiate ingredients, or price it slightly higher.

Dog: A niche appetizer that sells rarely and doesn’t make money → replace it with a better-fit starter or remove it.

Café example

Star: Iced latte with strong volume and solid margin → feature it seasonally and keep prep consistent.

Puzzle: High-margin specialty filter coffee that guests overlook → simplify the name, add a short tasting note, and offer as a staff recommendation.

Bar example

Plowhorse: A popular classic cocktail priced too low for current spirit costs → adjust price carefully or standardize pour and garnish.

Puzzle: A great-margin signature cocktail with low sales → rename, improve the menu description, and give it a clearer “why order this” hook.

Practical tips for cleaner categorization

• Don’t compare across different sections. Popularity is best judged within the same category.
• Use consistent recipe costing. If costs are estimated for some items and precise for others, results will mislead you.
• Separate dine-in vs delivery if needed. Some items perform very differently off-premise.
• Keep actions simple. One item, one decision. Overcomplicating slows implementation.

How digital menus can support the process

Digital menus make it easier to act on your categories without reprinting or redesigning everything. Once you’ve identified Stars, Puzzles, Plowhorses, and Dogs, you can adjust placement, labels, and descriptions quickly and keep changes consistent across locations.

For example, in a system like Menuviel, operators commonly use structured item organization and quick edits to highlight Stars, refine descriptions for Puzzles, and standardize changes across menus—especially when managing multiple languages or multiple branches.