What is a menu matrix?
A menu matrix sorts each item by two tests: how many sell and how much each one earns. The method comes from Michael Kasavana and Donald Smith.
- Star: popular and high margin.
- Plowhorse: popular, low margin.
- Puzzle: high margin, few sold.
- Dog: low margin, few sold.
The chart in the tool draws the four boxes. The dashed lines are the popularity cutoff and the average margin.
What is the menu mix and contribution margin formula?
An item is popular when its share of items sold is at least 70% of an equal share. It is high margin when its contribution margin is at least the average.
Contribution margin = price − plate cost
Menu mix % = item quantity sold ÷ all items sold
Popularity cutoff = (1 ÷ number of items) × 70%
Average margin = total contribution margin ÷ all items sold
Example: 9 entrees sold 2,685 plates. The cutoff is 1 ÷ 9 × 70% = 7.8%, about 209 plates. Total margin is 29,890 dollars, so the average is 11.13 dollars. Mac and cheese sold 480 at 12 dollars with a 3.20 dollar plate cost, an 8.80 dollar margin. It is popular with a low margin: a Plowhorse.
What do you do with stars, plowhorses, puzzles and dogs?
Keep stars, reprice plowhorses, promote puzzles and cut dogs. The tool puts the number behind each action next to the item.
- Star: keep the recipe and price, and give it the best spot.
- Plowhorse: raise the price or trim the plate cost by the gap to the average margin.
- Puzzle: move it up the menu, rename it or have servers suggest it.
- Dog: cut it, or rework it if guests ask for it.
Example: the mac and cheese margin is 2.33 dollars under the average. At the same 480 sold, closing that gap adds about 1,119 dollars.
How do you export a product mix report from Toast, Square or Clover?
Run the item sales report for the period, select Export and save it as CSV.
- Toast: the Product Mix (PMIX) report. Its columns include Qty sold and Net item amount.
- Square: Reports, then Custom, then the Custom Item report. Export sits at the top right.
- Clover: Reports, then Item and Service sales, then Export at the top right.
The tool finds the item, quantity and net sales columns on its own. If your export has a COGS column, it reads that as the cost.
Can I use it as a menu matrix template in Excel?
Yes. Paste rows straight from Excel or Google Sheets, and download the finished worksheet as a CSV that opens in either one. It carries menu mix, food cost, item and total margin, and the class for every item.
Plate costs you type are kept in this browser, so next quarter you drop the new report and the costs are already there. To cost a recipe from your case prices, use the recipe cost calculator. For margins kept current from every invoice, see Reports & answers.
Questions
Should I compare every item on the menu together?
Compare items that compete for the same order, such as entrees with entrees. Pick a menu group in the tool and it reruns the cutoff and the average for that group.
Why does it use net sales instead of the menu price?
Net sales are after discounts and comps, so the average price is what guests paid. If your file has no net sales column, the tool uses the item price.
Where do plate costs come from?
Cost each recipe from what you pay for the ingredients, or paste a list of item names and costs. If your POS export already has a cost or COGS column, the tool reads it.
Is my sales report uploaded?
No. The file is read in your browser, and plate costs are saved in this browser only.
Sources
- Product Mix (PMIX) Report Overview, Toast Central,
- View item, category and modifiers sales reports, Square Support Center,
- Run an Item Sales report, Clover Help Center,
