How to Optimize Your Restaurant’s Menu for Profitability
Jul 8, 2025
Menu engineering involves analyzing the profitability and popularity of each dish to strategically design your menu.
Drew P.

Divide your menu items into four categories: Stars (high profit, high popularity), Plowhorses (low profit, high popularity), Puzzles (high profit, low popularity), and Dogs (low profit, low popularity).
Data Insight: Stars and Puzzles should be highlighted with eye-catching designs, such as boxes or bold fonts, to draw attention.
Actionable Steps:
Use sales data to identify your top-performing dishes.
Place high-margin items in the “golden triangle” (top-right, top-left, and center of the menu) where eyes naturally focus.
Remove or rework Dogs to reduce food waste and prep time.
Step 2: Align with Customer Preferences
Our data shows that 45% of diners prefer customizable dishes, such as build-your-own bowls, pizzas, or salads. Additionally, 55% of customers are more likely to order dishes with descriptive language (e.g., “hand-crafted” or “slow-roasted”). Understanding these preferences allows you to craft a menu that resonates with your audience.
Actionable Steps:
Offer customizable options to cater to diverse dietary needs, like gluten-free or low-carb choices.
Use evocative descriptions to make dishes sound irresistible—e.g., “Artisanal burrata with heirloom tomatoes drizzled in aged balsamic.”
Update your menu seasonally to reflect current consumer trends, such as lighter dishes in summer.
Step 3: Streamline for Efficiency
A bloated menu can overwhelm customers and strain kitchen operations. Restaurants with streamlined menus (15–20 items) report 10% faster service times and lower food costs.
Actionable Steps:
Limit your menu to focus on high-performing dishes, reducing prep complexity.
Cross-utilize ingredients across multiple dishes to minimize waste—e.g., use roasted vegetables in both salads and entrees.
Test new dishes as limited-time specials before adding them permanently.
Step 4: Leverage Data Analytics
Use sales data and customer feedback to continuously refine your menu. National Restaurant Insights’ free tools can help you track which dishes sell best and identify underperforming items.
Actionable Steps:
Analyze sales reports weekly to spot trends, such as a spike in dessert orders on weekends.
Survey customers to understand their preferences—e.g., are they craving more spicy options?
Experiment with pricing strategies, like bundling appetizers and entrees for a discount.
Menu optimization is a science and an art. By combining data-driven insights with creative presentation, you can boost profitability while delighting customers. National Restaurant Insights offers free tools and guides to help you refine your menu and grow your business.