Skip to content
Restaurants · 6 min read · 25 August 2026

Menu engineering for restaurants: find your stars, fix your plowhorses

Menu engineering sorts every dish by how well it sells and how much profit it brings, so you know what to push and what to change. This guide walks through the method with six real-style dishes and PKR numbers.

Most menus grow by accident. A dish gets added because a customer asked, another because the cook was good at it, and nobody removes anything. After a few years you have 90 items, a crowded kitchen and no clear idea which dishes pay the rent.

Menu engineering is a simple method to fix this. It looks at two things for every dish: how many you sell, and how many rupees each plate leaves after ingredients. Then it puts every dish in one of four groups.

The two numbers you need

1. Contribution margin per dish

Contribution margin = menu price − food cost. If a chicken karahi sells for Rs 3,200 and its ingredients cost Rs 1,090, each karahi contributes Rs 2,110 towards salaries, rent, bills and profit. You need a costed recipe card for each dish to get this number. Our food cost percentage guide shows how to cost a dish.

2. Number sold

Take the quantity sold for each item over the same period, usually one month. Your POS item-wise sales report gives this directly. If you bill by hand, count from the bill book for at least two typical weeks.

A worked example

Here are six dishes from one month at a karahi and biryani restaurant:

DishPriceFood costMargin per dishSoldTotal margin
Chicken karahi (full)Rs 3,200Rs 1,090Rs 2,110420Rs 886,200
Chicken biryani (plate)Rs 650Rs 260Rs 3901,300Rs 507,000
Mutton karahi (full)Rs 5,800Rs 2,450Rs 3,350110Rs 368,500
Daal mash (plate)Rs 550Rs 140Rs 410260Rs 106,600
Chicken handi (half)Rs 1,700Rs 620Rs 1,080380Rs 410,400
Fish fry (1 kg)Rs 3,400Rs 1,900Rs 1,50060Rs 90,000
Total2,530Rs 2,368,700

Setting the popularity line

The usual rule is that a dish is popular if it sells at least 70% of the average. With six dishes and 2,530 plates sold, the average is 2,530 ÷ 6 = about 422 plates. 70% of that is about 295. So any dish selling 295 or more counts as popular.

Setting the margin line

The margin line is the average margin across all plates sold: total margin ÷ total sold = 2,368,700 ÷ 2,530 = about Rs 936. A dish earning more than Rs 936 per plate is high margin.

The four groups

DishPopular? (295+)High margin? (Rs 936+)Group
Chicken karahiYes (420)Yes (Rs 2,110)Star
Chicken handiYes (380)Yes (Rs 1,080)Star
Chicken biryaniYes (1,300)No (Rs 390)Plowhorse
Mutton karahiNo (110)Yes (Rs 3,350)Puzzle
Fish fryNo (60)Yes (Rs 1,500)Puzzle
Daal mashNo (260)No (Rs 410)Dog

What to do with each group

Stars: protect them

Chicken karahi and handi sell well and earn well. Keep the recipe and portion exactly the same, place them prominently on the menu, and make sure the kitchen never runs short of their ingredients. Do not discount them heavily; they already sell.

Plowhorses: raise the margin carefully

Biryani sells more than anything else but earns only Rs 390 a plate, a food cost of 260 ÷ 650 = 40%. Small changes matter a lot here because of the volume. If you raise the price by Rs 50 and sales hold at 1,300 plates, the margin becomes Rs 440 a plate and the month earns 50 × 1,300 = Rs 65,000 more.

Other options: check the chicken weight per plate, sell a raita or drink combo with it, or offer a half and full size where the full has the better margin.

Puzzles: sell more of them

Mutton karahi and fish fry earn well per plate but few people order them. Ask why. Is the price too far above the chicken karahi? Is it hidden at the bottom of the menu? Does the waiter know how to describe it? Try a better spot on the menu, a photo, a weekend deal, or a half portion so more tables try it. Fish is also seasonal, so judge it over winter months separately.

Dogs: fix, reprice or remove

Daal mash neither sells strongly nor earns much per plate. Before removing it, check whether it pulls customers in, for example vegetarian guests in a family group. If it does not, consider removing it. Every item you remove means less stock to buy, less prep, and less waste.

Menu layout tips

  • Put stars and puzzles where the eye lands first, usually the top right of a printed menu, or the top of each category.
  • Do not line prices up in a single column; customers then read the menu by price.
  • Group items clearly: karahi, handi, BBQ, rice, bread, drinks.
  • Use short, plain descriptions. 'Desi ghee, fresh tomato, 1 kg chicken' sells better than a long paragraph.
  • Keep the menu short enough that the kitchen can make every item well at peak time.

Deals and combos

Pakistani customers love a deal, and deals are where menu engineering pays off most. A good deal pairs a plowhorse or a puzzle with low-cost add-ons, so the customer sees value while your margin holds.

Example: a family deal of one chicken handi (half), one plate of biryani, four naan and a 1.5 litre cold drink. Using the costs above, the food cost is Rs 620 + Rs 260 + (4 × Rs 12) = Rs 928, plus a cold drink costing you Rs 180, for a total of Rs 1,108. Sold separately, the items come to Rs 1,700 + Rs 650 + Rs 160 + Rs 250 = Rs 2,760. Price the deal at Rs 2,450 and the customer saves Rs 310, while you keep Rs 2,450 − Rs 1,108 = Rs 1,342 per deal, a food and drink cost of about 45%.

That cost percentage is higher than selling the items one by one, so the deal only makes sense if it brings in extra orders or bigger tables. Track deal sales separately in your item report and treat each deal as its own dish in the next round of analysis.

How often to do this

Run the analysis every three months, and after any big ingredient price change. Chicken prices in Pakistan can swing sharply within weeks, which can move a star into plowhorse territory without the menu changing at all.

The work is quicker when your POS already holds item-wise sales and recipe costs. ArfaPOS keeps both, since recipes are linked to inventory and reports show sales by item, so the inputs for this table come straight from the system instead of from bill books. If you are still choosing software, see our restaurant POS checklist.

Compare dishes within the same category when your menu is large. Comparing a Rs 150 chai with a Rs 5,800 mutton karahi tells you little; comparing all karahi dishes with each other tells you a lot.

FAQ

Questions people ask

What is a star in menu engineering?

A star is a dish that sells well and earns a high margin per plate. You protect stars by keeping their recipe and portion consistent and placing them prominently on the menu.

Should I remove every dog from my menu?

Not always. Some low-margin, low-selling dishes bring in customers who then order other items. Check how the dish is used before removing it, then fix the price or recipe, or remove it.

Do I need software for menu engineering?

No, a spreadsheet works. You need item-wise sales for a month and a food cost for each dish. Software saves time because it already holds both numbers.

How often should I review my menu?

Every three months is a good rhythm, plus any time a major ingredient such as chicken, mutton or cooking oil changes price sharply.

Tell us about your business.

We reply with a price, a demo time and the setup that fits your branches, counters and users.