PRINCIPLES OF FOOD, BEVERAGE, AND LABOR COST CONTROLS

306 � CHAPTER 11 MENU ENGINEERING AND ANALYSIS
This calculation shows the total of contribution margins provided
by the particular menu item. The sum of all the individual totals is found
in Box M. For the Grandview Bistro, the total contribution margins for all
items for the month of February is shown as $36,056.75. This amount of
money is available to be applied to all other costs in the restaurant and to
provide a profit.
It is important to note that the amount shown in Box M is the contribution
margins for entr é es only and does not include other sales such as
appetizers, desserts, and beverages. There would be a larger total menu contribution
if one were to include sales of other items. The Menu Engineering
worksheet shown in Figure 11.1 includes only entr é es, because the analysis
would be skewed and invalid if sales of all menu items were included in
one worksheet. This will be explained later in this chapter.
Box O: Average Contribution Margin
The figure in Box O is the average contribution margin , determined by
dividing the total in Box M by the total number of units sold, found in Box N.
For the illustrated worksheet, the calculation is:
Box Q: Item Percentages
Average contribution margin � ______________
Total CM
Total number sold
� $36.057 _______
2,635
� $13.68
The figure in Box Q requires careful consideration. This is the percentage of an
entire menu represented by each item on that menu, multiplied by 70 percent.
There are 16 items on the menu used for Figure 11.1 , so each is one -
sixteenth, or 6.25 percent, of the menu. Similarly, if there were 10 items on
the menu, each would be one - tenth, or 10 percent, of the total. The figure in
Box Q is calculated by dividing one menu item by the total number of items
on the menu and then multiplying the result by .7 (70 percent). Thus,
1/16 � .7 � .04375 or 4.375%