Menu segmentation applies cost and performance analysis at the category level rather than the individual item level. Operators can identify that their appetizer category runs at 38% food cost while entrees run at 29%, flagging an imbalance. Segment-level analysis also informs labor planning and prep scheduling. MenuMargin supports category-level reporting alongside item-level reports, enabling operators to see both the forest and the trees when optimizing their menu assortment and pricing structure.
← Glossary
Menu Segmentation
Dividing a menu into categories such as appetizers, entrees, and desserts for targeted cost and performance analysis.
Related terms
- Menu Engineering — A framework for categorizing menu items by profitability and popularity to optimize item mix and pricing.
- Food Cost Percentage — The ratio of ingredient cost to menu price, expressed as a percentage. A key profitability benchmark.
- Plate Cost — The total ingredient cost for a single prepared menu item, calculated from the cost per ingredient portion.