A: Click the "Reorder Categories" button at the top right of the Menu Review page. We've put a red box around it below:
This will cause the category panel to open up on the left hand side of your menu.
Create a category like you normally would. Then hover your mouse over the category and press the down arrow here:
This will allow you to create a subcategory.
What if I want to add a pre-existing category to the root category?
Same steps as above! Now when you press the down arrow, instead of typing in the title of the new sub-category, just drag the pre-existing category you already created to sit under the root category!