Event Menu Item Classifications

In Event Menu Planing, menu items are rated based on their popularity and contribution within each course.

The popularity of a menu item is calculated using the formula:

Demand = Number of items sold of a particular menu item / Total number of menu items sold.

If a menu item's sales percentage is greater than the average sales percentage for the entire menu, it receives a rating of H to indicate it has a higher sales percentage than the demand mix. If a menu item's sales percentage is lower than the average sales percentage for the entire menu, it receives a rating of L.

The contribution of a menu item is calculated using the formula:

Contribution Margin = Menu price - Food cost

If a menu item's contribution is greater than the average contribution of the entire menu, it receives a rating of H to indicate that it has an above average contribution margin. If a 24 menu item's contribution is lower than the average contribution of the entire menu, it receives a rating of L.

According to this rating, the items are classified into four types and are styled as follows:

Table 20-2 Event Menu Item Classifications

Menu Item Rating	Description	Color Code
HH	The item is both profitable and popular.	Green
HL	The item is high in popularity but low in profit.	Blue
LH	The item is low in popularity but high in profit.	Orange
LL	The item is both low in popularity and profit.	Red