The best way to arrange your products properly is to create some categories and subcategories so that your customers can easily find the matching products. These categories will build your menu in the end.
It is that easy:
1. Click "Products", then go to "Categories".
2. Click on "Add category".
3. Enter the name of the Category.
4. If you want one category to be subordinate to another, you can simply select "Parent category".
5. Click on the matching category and subcategory when creating a new product
Don't forget to save the changes and you are finished :-)