James Okonkwo runs two neighbourhood cafés in Sydney’s Inner West. His menus had grown organically — seasonal specials became permanents, supplier changes were absorbed silently, and the bestselling latte subsidised a lunch item that barely broke even.
Start with contribution, not popularity
List every menu item. For each, calculate: selling price minus direct ingredient cost. Ignore overheads for the first pass — you want to see which items contribute dollars per sale, not just which sell the most.
Plot mentally in four groups:
- High contribution, high volume — protect these; they fund the business
- High contribution, low volume — promote them; customers may not know they exist
- Low contribution, high volume — dangerous; busy but draining
- Low contribution, low volume — candidates for retirement
James discovered his avocado toast sat in the bottom-right quadrant. It sold steadily, used expensive produce with spoilage risk, and tied up grill space during the breakfast rush.
Repricing is not the only lever
Raising the price of avocado toast by two dollars was part of the answer. Shrinking portion slightly, switching to a seasonal topping rotation, and moving poached eggs (high contribution) to the visual top of the menu board also helped.
Review twice a year
Ingredient costs shift with seasons and suppliers. A margin ranking that was accurate in January may be wrong by July. Block half a day every six months — or engage a margin session if the menu has changed significantly.
Food businesses live and die on cents per plate. Rank your menu by contribution and the decisions become obvious.