Not all dishes are created equal. Some are customer favourites that drive profits, while others might drain resources without adding value. A Star/Dog analysis helps you identify what works and what doesn’t, so you can focus on the stars of your menu.
Understanding Star/Dog Analysis
This tool categorises dishes based on profitability and popularity into four quadrants:
- Stars: High profitability, high popularity. These are your winners—keep them front and centre.
- Plow Horses: High popularity, low profitability. Look for ways to improve their margins.
- Puzzles: High profitability, low popularity. Promote these dishes through staff recommendations or special offers.
- Dogs: Low profitability, low popularity. Consider removing these items from your menu.
How to Conduct the Analysis
- Pull sales data: Gather sales and profit data for a three-month period.
- Categorise your dishes: Using a graph, plot popularity (units sold) against profitability (gross margin).
- Evaluate and adjust: Identify which items to promote, refine, or remove.
Why It Matters
A Star/Dog analysis gives you actionable insights to streamline your menu. By focusing on your Stars and optimising your Plow Horses and Puzzles, you can maximise profitability while meeting customer expectations.
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