Optimizing revenue with the comparison of traditional menu engineering and AI-driven menu engineering for south Indian breakfast in luxury hotels

Menu engineering has evolved into a strategic managerial tool within the hospitality industry, enabling food and beverage (F&B) outlets to systematically evaluate menu performance and maximize revenue generation. In star category hotels, where operational efficiency must be balanced with premium customer experience, menu engineering becomes particularly crucial. This study focuses on the application of menu engineering techniques to traditional South Indian breakfast items, which form a staple component of hotel breakfast menus across India. By analyzing both the popularity (sales volume) and profitability (contribution margin) of selected menu items, the research identifies patterns that influence revenue optimization. The study adopts a quantitative research design using sales data and cost analysis from star category hotels. The primary objective of this study is to analyze the effectiveness of menu engineering in optimizing revenue from traditional South Indian breakfast items in star category hotels. Specifically, the study aims to evaluate the popularity and profitability of selected menu items, classify them using the menu engineering matrix, and develop strategic recommendations for improving menu performance. Additionally, the study seeks to understand the role of menu design and pricing strategies in influencing customer choices and enhancing revenue generation. The results reveal that while several traditional breakfast items exhibit high popularity, their profitability varies significantly due to cost structures and pricing strategies. The study concludes that strategic menu redesign, pricing adjustments, and product repositioning can substantially enhance revenue without compromising customer satisfaction or cultural authenticity.