How do you measure the performance and feedback of new menu items after launch?

2 Contribution margin

Contribution margin is the difference between the selling price and the food cost of each menu item. It tells you how much each item contributes to your overall profit after covering the variable costs of production. You can calculate contribution margin by subtracting the food cost of each item from the selling price and multiplying by the number of units sold. A high contribution margin indicates that your new menu item is efficient and profitable, while a low contribution margin suggests that it is too expensive to produce or too cheap to sell.

3 Popularity index

Popularity index is the percentage of customers who order a specific menu item out of the total number of customers who order from that category. It tells you how well your new menu item fits into your menu structure and appeals to your target market. You can calculate popularity index by dividing the number of customers who order a specific item by the total number of customers who order from that category and multiplying by 100. A high popularity index indicates that your new menu item is a standout choice and a competitive advantage, while a low popularity index suggests that it is not differentiated enough or aligned with your customer preferences.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?