The Application of the Lee’s Menu Engineering Method for Italian Pizzas
The purpose of this study is an application of Lee’s Menu Engineering (LME) method for menu analysis on the eight kinds of pizza selected from 17 kinds of pizza served by an Italian restaurant near by the Keimyung College University campus. The eliminated nine items were in the third quadrant or below the trend line. The LME method is more efficient than generally used methods such as the Miller, Kasavana & Smith, Uman, Pavesic and Merricks & Jones method. The LME method comprises reference lines and four quadrants created by x, y axes and its average values. The x and y axes comprise the sales ratio (MM%, percentage of the Menu Mix) and the weighted contribution margin (WCM%, percentage of the Weighted Contribution Margin) respectively. The obtained results are such that total sales increased by 1.59% from 58,747,200 won to 59,684,000 won, despite the decrease in sales volume. Total contribution margin also increased from 35,248,320 won to 35,810,400 won. The trend line also shows from y=0.9147x (R2=0.703) to y=0.9944x (R2=0.9893). These results indicate that the LME method is superior in practical applications.