What is a typical action for a Plowhorse item (high popularity, low contribution margin)?

• A. Remove item from menu immediately.
• B. Move to the Dogs quadrant.
• C. Increase price or reduce portion to improve margin.
• D. Decrease price to boost sales.

Answer: (C)

In menu engineering, a Plowhorse is a best-selling item that delivers a low contribution margin. The goal with these items is to keep their high sales while lifting profitability per unit. Increasing the price or reducing the portion are the typical moves because they raise the contribution margin without risking a large drop in demand—the item already sells well, so small price adjustments or portion tweaks can improve overall profitability while maintaining volume.

Removing it from the menu would sacrifice a top seller and hurt overall revenue. Moving it to a different quadrant (low popularity) would misrepresent its performance. Decreasing the price to boost sales would further erode the margin you’re trying to improve.