The four quadrants
Menu engineering plots every dish on a 2×2 of popularity vs profitability. The four quadrants are: Stars (high pop, high profit), Plowhorses (high pop, low profit), Puzzles (low pop, high profit), and Dogs (low pop, low profit). Most operators recognise the framework. Few apply it well.
Get the data right first
The single most common error is using gross margin instead of contribution margin. Gross margin uses your standard food cost ratio; contribution margin uses the actual recipe cost minus the actual sale price. The numbers diverge wildly on dishes with seasonal ingredients or high-modifier-count plates. Mise tracks both — use contribution margin.
What to do with each quadrant
Stars
Protect them. Don't reprice down to chase volume — they're already pulling weight. Test small price increases on quiet midweek services to find the elasticity ceiling.
Plowhorses
These are popular but margin-thin. The temptation is to remove them — don't, you'll alienate regulars. Instead reduce portion cost (smaller protein, cheaper accompaniment, plate redesign) or add a premium upsell modifier.
Puzzles
High-margin items that aren't selling. The fix is rarely the price — it's the menu position, the description, or the server's nudge. Move them to the top of the section, rewrite the description with sensory detail, brief the floor.
Dogs
These should leave the menu. The only reason to keep one is sentimental — a signature dish that is part of the venue's identity. Be honest with yourself about whether sentiment is worth the menu real estate.
When to reprice
Twice a year is a good rhythm — once in spring as menus shift to lighter fare, once in autumn as supplier costs settle. Mise surfaces a per-item P&L view that makes this exercise an hour, not a day.