The Menu Profitability Index (MPI) is a ranking metric that multiplies gross margin by sales mix percentage to identify items with the greatest combined profit contribution. Items scoring high on MPI are the menu's revenue engines and deserve priority attention for repricing, promotion, or increased visibility. MPI = gross margin × menu mix %. MenuMargin computes MPI for all menu items and presents a sorted index that surfaces the top contributors to gross profit, enabling operators to focus strategic changes where they have the greatest dollar impact.
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Menu Profitability Index
A composite score ranking menu items by a weighted combination of margin and sales volume to identify highest-impact items.
Related terms
- Menu Engineering — A framework for categorizing menu items by profitability and popularity to optimize item mix and pricing.
- Gross Profit Margin — Revenue minus cost of goods sold, divided by revenue. Expressed as a percentage; the primary menu profitability metric.
- Menu Mix — The distribution of sales volume across menu items, typically expressed as a percentage of total menu revenue.