Why are some of my best-selling menu items classified as low-profit in the matrix, and what should I do about it?

It’s common for a top-selling item to show up as “low-profit” in a menu engineering matrix because the matrix looks at contribution margin, not just how often something sells. In other words, an item can be popular while still leaving you with very little profit per sale.

Most of the time, this happens when ingredient cost, portion size, waste, or labor time has crept up faster than the selling price. The good news is you usually don’t need to remove the item—you need to manage it like a high-volume workhorse.

What “low-profit” really means in the matrix

In most restaurants, the matrix uses two measures: popularity (sales mix) and profitability (contribution margin). Contribution margin is what’s left after the direct costs of the item (typically food cost, and sometimes packaging) are subtracted from the selling price.

That’s why a best-seller can land in a low-profit quadrant: it moves volume, but each sale contributes less to covering labor and overhead than you expect.

Why a best-seller becomes low-profit

These are the most common operational reasons behind the mismatch between “best-selling” and “low-profit,” and they show up across restaurants, cafés, and bars.

• Portion creep: serving sizes gradually get bigger without a price change
• Ingredient inflation: a key ingredient increases in cost, but the menu price stays the same
• High garnish or “free add-ons”: sauces, dips, bread, sides, or condiments quietly raise plate cost
• Waste and spoilage: prep waste, short shelf life, or frequent remakes reduce true margin
• Labor-heavy execution: the item sells well but takes longer and ties up a station
• Discounting and promos: the item is often sold under deals, bundles, or third-party discounts
• Delivery packaging costs: especially for cafés and takeout-focused concepts, packaging can erase margin

What to do about it

In most restaurants, the goal is to protect the popularity while lifting the contribution margin. You typically test one change at a time, track results for a short period, and only then standardize the new approach.

1) Confirm the numbers before changing anything

Start by validating the recipe and the actual cost behind the item. Small errors in recipe costing are one of the most common reasons items look artificially “low-profit.”

• Re-check the recipe card and portion size against what is actually plated
• Update ingredient costs to current invoices, not old averages
• Include costly “invisible” items like oils, sauces, garnishes, and packaging
• Separate full-price sales from discounted or bundled sales

2) Improve margin without breaking guest expectations

With best-sellers, subtle adjustments usually work better than dramatic changes. Guests notice when their favorite item suddenly looks smaller or more expensive without a clear reason.

• Adjust the price modestly, or set a new price for premium variants
• Standardize portions using scoops, scales, ladles, or pre-portioned prep
• Swap one high-cost component for a lower-cost alternative that keeps the same profile
• Reduce waste through tighter prep pars and clearer hold times
• Refine the build to reduce labor steps during peak periods

3) Use smart attachment selling rather than forcing a price jump

If a direct price increase is risky, a common approach is to keep the core item stable and increase average check around it.

• Pair it with a high-margin add-on: extra protein, dip, side, or topping
• Create a “make it a meal” option with a controlled-cost side and drink
• Recommend a beverage pairing at the point of decision

4) Reposition the item on the menu so it sells the right way

Best-sellers often sell themselves, but placement and labeling can change how guests order and what they add. In most restaurants, this is managed through menu layout, highlights, and clear option structure.

• Make the base item clear and profitable, then offer upgrades as optional choices
• Limit expensive default inclusions and move them into add-ons
• Steer guests toward higher-margin variations with simple descriptors

How it’s typically done in practice

A common process is to treat these items as “high-volume, low-margin” and manage them with a short improvement cycle:

• Week 1: verify recipe costing, portions, and discount impact
• Week 2: apply one margin lever (portion control, small price move, or component change)
• Weeks 3–4: monitor sales volume, guest feedback, waste, and contribution margin
• Week 5: standardize the change or roll back and test a different lever

Real-world examples

Restaurant example: best-selling chicken bowl

A chicken bowl sells all day but shows low profit because of portion creep on protein and expensive toppings. The fix is usually a measured protein portion, a slightly smaller default topping set, and optional premium add-ons like avocado or extra chicken.

Café example: iced latte as a top seller

An iced latte can look low-profit when milk costs rise and cups/lids are expensive. A typical solution is tightening recipe standards, offering a small upcharge for alternative milks, and encouraging a pastry pairing rather than pushing a large price jump on the drink.

Bar example: popular signature cocktail

A signature cocktail may be low-profit due to over-pouring, high garnish cost, or a premium spirit used by default. Common fixes include jigger enforcement, a standard garnish spec, and a “premium spirit upgrade” option.

How digital menus and management systems can help

Digital menus make it easier to manage these changes consistently across shifts and locations. For example, a system like Menuviel can support cleaner option structures (base item plus upgrades), highlight profitable add-ons, and keep item information consistent so portion and pricing decisions are reflected accurately on every menu.