Using the contribution margin aspect of menu engineering to enhance financial results

Abstract

Managing food service operations to achieve a specific food cost percentage has long been a fundamental principle of the restaurant business. Management bonuses and other rewards are often based on achieving these predetermined goals. Available tools such as menu engineering and contribution margin, although sound in theory, are not frequently used. Demonstrates the use of menu engineering and contribution margin concepts in terms of customers served. Concludes that the goal of any restaurant should be to apply marketing techniques based on menu engineering and contribution margin concepts in order to achieve the highest possible financial results.

Citation

LeBruto, S.M., Ashley, R.A. and Quain, W. (1997), "Using the contribution margin aspect of menu engineering to enhance financial results", International Journal of Contemporary Hospitality Management, Vol. 9 No. 4, pp. 161-167. https://doi.org/10.1108/09596119710185846