In Event Menu Planning, 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.
Table 21-2 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 |
Parent topic: Event Menu Planning