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Journal cover: International Journal of Contemporary Hospitality Management

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Online from: 1989

Subject Area: Tourism and Hospitality

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


Document Information:
Title:Using the contribution margin aspect of menu engineering to enhance financial results
Author(s):Stephen M. LeBruto, (Associate Professor, Hospitality Management Department, College of Business Administration, University of Central Florida, Orlando, Florida, USA), Robert A. Ashley, (Director, Hospitality Management Food Services, Hospitality Management Department, College of Business Administration, University of Central Florida, Orlando, Florida, USA), William Quain, (Professor, Hospitality Management Department, College of Business Administration, University of Central Florida, Orlando, Florida, USA)
Citation:Stephen M. LeBruto, Robert A. Ashley, William Quain, (1997) "Using the contribution margin aspect of menu engineering to enhance financial results", International Journal of Contemporary Hospitality Management, Vol. 9 Iss: 4, pp.161 - 167
Keywords:Contribution margin, Food cost percentage, Menu engineering
Article type:Research paper
DOI:10.1108/09596119710185846 (Permanent URL)
Publisher:MCB UP Ltd
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.



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