In menu engineering, a plowhorse is a menu item with high sales popularity but relatively low contribution margin. Guests order it frequently, but each sale contributes less toward covering the restaurant’s other operating costs than higher-margin items. The objective is to preserve its popularity while improving its contribution where possible.
Menu engineering compares an item’s sales popularity with its contribution margin, usually calculated as selling price minus the direct food cost per portion. A plowhorse falls above the menu’s popularity benchmark but below the contribution-margin benchmark. The exact thresholds depend on the menu and analysis period.
A restaurant’s burger may sell more portions than any other main course, but its contribution margin may be lower than the menu average because of expensive ingredients, generous portioning or a selling price that has not kept pace with costs. Its popularity makes it valuable, but its profitability may need attention.
A star has high popularity and high contribution margin. A puzzle has low popularity and high contribution margin. A dog has low popularity and low contribution margin. A plowhorse has high popularity and low contribution margin.
Chef’s tip: do not remove a plowhorse simply because its margin is below average. Its popularity may be important to the restaurant; first examine portion control, purchasing, recipe design and price.
This term is one of hundreds covered in depth across OCS courses, learning paths, and 1-on-1 coaching with Chef Eric.
