The primary goal of menu engineering is to encourage purchase of targeted items, presumably the most profitable items, and to discourage purchase of the least profitable items. To that end, firms must first calculate the cost of each item listed on the menu. This costing exercise should extend to all items listed on the menu, and should reflect all costs incurred to produce and serve. Optimally item costs should include: food cost (including wasted product and product loss), incremental labor (e.g., cost in in-house butchering, pastry production, or prep), condiments and packaging. Only incremental costs and efforts should be included in the item cost.