Professional Documents
Culture Documents
1
Rationale
2
Objectives
3
Must Satisfy Guest Expectations
4
Must attain Marketing Objectives
Locations
Times
Prices
Quality
Specific food items
5
Must help to achieve
Quality Objectives
Quality standards:
flavor, texture, color, shape, flair,
consistency, palatability, visual appeal,
aromatic apparel, temperature
Nutritional concerns:
low-fat, high-fiber diets, vegetarian
6
Must be Cost-Effective
Commercial
financial constraints
profit objectives
Institutional
minimizing costs
operational budget
7
Must be Accurate
8
Menu Planning Constraints
9
Facility Layout/Design
and Equipment
Space
Equipment available
Work flow
Efficiency
10
Available Labor
Number of Employees
Required Skills
Training Programs
11
Ingredients
Standard recipe
Availability of the
ingredients required
during the life span of
the menu
Seasonal ingredients
Cost
Miscellaneous cost
(flight charges, storage)
12
Marketing Implications
Social needs
Physiological needs
Type of service
(fast food, leisure dining)
Festival
Nutrition
13
Quality Levels and Costs
Guests’ expectation
Employees’ skills and knowledge
Availability of equipment
Specific ingredients
Food costs and selling prices
14
The Menu and
the Food Service Operation
15
The Menu Helps to Determine
Staff Needs
Variety and complexity increases, number of
personnel increases
Production staff
Service staff
Back-of-house staff
16
The Menu Dictates Production
and Service Equipment Needs
Tableside service
carving utensils, trolleys,
gueridon, salad bowls,
suzette pans, souffle dishes,
soup tureens, large wooden
salad bowl, rechaud, Voiture
(heated cart for serving
roasts) and ......
17
The Menu Dictates Dining Space
18
Purchase Specifications May
Be Dictated By The Menu
If the menu offers such items as USDA Choice
New York strip steaks, quarter-pound lean beef
burgers, grade AA eggs, freshly squeezed Florida
orange juice, or vine-ripened tomatoes,
back -of-house procedures will not only include
receiving, storing, issuing, and producing the menu
items
but also purchasing the specific products described.
19
How and When Items
Must Be Prepared
To stimulate guest interest, the menu planner may
offer a dish prepared in a variety of ways:
Cooking methods
Poached, broiled, batter-dipped, deep fried
The finished product must be prepared using the
method indicated on the menu
Small quantities cooking (a la carte)
Batch cooking
20
The Menu is a Factor in the Development
of Cost Control Procedures
21
The Menu and the Service Plan
22
Menu Design
25
Types Of Menus
Breakfast
(offers fruits, juices, eggs, cereals, pancakes,
waffles, and breakfast meats)
Lunch
(features sandwiches, soups, salads, specials;
usually lighter than dinner menu items)
Dinner
(more elaborate, steaks, roasts, chicken, sea food
and pasta; wines, cocktails, etc..)
26
Types Of Menus - Specialty
Children’s
Senior citizens’
Alcoholic beverage
Dessert
Room service
Take-out
Banquet
California (breakfast, lunch and dinner menu items on one
menu)
Ethnic
27
Basic Rules Of Menu Planning
28
Selecting Menu Items
Menu category:
Appetizers
Salads
Entrees
Vegetables
Desserts
Beverages
29
Common Sources
For Menu Item Recipes
Old menus
Books
Trade magazines
Cookbooks for the
home market
30
Menu Balance
Business balance
- balance between food cost, menu prices,
popularity of items, financial and marketing
considerations
Aesthetic balance
- colors, textures, flavors of food
Nutritional balance
31
Elements Of Menu Copy
Headings
- Appetizers
- Soups
- Entrees
Sub-heading
- Under entree:
Steak, seafood, today’s specials
32
Elements Of Menu Copy
33
Truth-in-menu
Sequence:
Appetizers, soups, entrees, desserts
Depends on the operation (side orders, salads,
sandwiches, beverages)
Depends on popularity and profitability
Placement:
artworks; space; boxes; clip-on; etc.
36
Menu Layout
Format:
Menu’s size
General makeup
Typeface:
Printed letters
Font size
Type face
37
Menu Layout
Artwork:
Drawings, photographs, decorative patterns,
borders
Paper:
Texture
Cover:
Color
Texture
38
Common Menu-design
Mistakes
Menu is too small
Type is too small
No descriptive copy
Every item treated the same
Some of the operations’ food and beverages are not
listed
Clip-on problems
Basic information about the property and its
policies are not included
Blank pages 39
Evaluating Menus
40
Menu Evaluation:
Questions Most Often Asked
Is the menu attractive?
Do the colors and other design elements match the
operation’s theme and decor?
Are menu items laid out in an attractive and logical
way?
Is there too much descriptive copy? Not enough? Is
the copy easy to understand?
Is attention called to the items managers most want
to sell, through placement, color, description, type
size, etc.?
41
Menu Evaluation:
Questions Most Often Asked
Have guests complained about the menu?
Have guests said good things about the menu?
How does the menu compare with the menus of
competitors?
Has the average guest check remained steady or
increased?
Is there enough variety in menu items?
Are menu items priced correctly?
Are you selling the right mix of high-profit and
low-profit items?
42
Menu Evaluation:
Questions Most Often Asked
Is the typeface easy to read and
appropriate to the restaurant’s
theme and decor?
Is the paper attractive and stain-
resistant?
Have the menus been easy to
maintain so that guests always
receive a clean, attractive menu?
43
Menu Pricing
SUBJECTIVE PRICING:
The reasonable price method: from the guest’s
perspective - what charge is fair and equitable
The highest price method: sets the highest price that
the manager thinks guests are willing to pay
The loss lender price method: an unusually low
price is set for an item to attract guests
The intuitive price method: takes a wild guest,
trail-and-error
44
Menu Pricing
45
Menu Pricing
PROFIT PRICING:
factors profit requirements and non-food expenses into
menu item selling prices
46
Menu Pricing
HOLDING PURCHASING
COOKING RECEIVING
PREPARING STORING
PRODUCTION ACTIVITIES
ISSUING
48
The Menu Influences
Equipment Needs
equipment must be available to prepare products required by
the menu
Sanitation Management
management must consider menu items in light of possible
sanitation hazards
Layout and Space Requirements
the physical space within which food production and service
take place - must be adequate for purchasing, receiving,
storing, issuing, producing, and serving every item on the
menu
50
The Menu Influences
Staffing Needs
as menu becomes more complex, greater demands may be
placed upon the staff
Service Requirements
the menu affects the skill levels required for service
personnel, along with equipment, inventory, and facilities
needed in the front of the house
Sales Income Control Procedures
elaborate menus require more stringent controls than simple
menus
51
Menu Planning
is also.. A Tool for:
Sales
lists the items an operation is offering for sale
Advertising
communicates a property’s food and beverage marketing
plans
Merchandising
target market expectations - products, service, ambience
(theme and atmosphere), perceived value
Marketing Tool
strive to meet or exceed the expectations of its target market
52
Priority Concerns Of
The Menu Planner
Priority Concerns of menu Planner
Layout Concerns
53
Menu Planning Strategies
Rationalization
simplification for the sake of operational efficiency
cross-utilization : menu items use the same raw
ingredients
streamlining of the purchasing, receiving, storing,
issuing, production, and serving control points.
High-quality convenience foods make it easier to
offer new items without having to buy additional
raw ingredients
54
Factors That Influence Menu
Planning Strategies
Needs and wants of target markets
Several items from same ingredients
Storage requirements
Personnel skill levels
Product availability / seasonality
Quality and price stability
Sanitation procedures
55
External Factors
That Influence Menu Changes
Consumer Demands
decide which potential markets wants to attract
Economic Conditions
cost of ingredients, potential profitability of new menu items
Competition
many not want to serve next door’s best
Supply Levels
seasonal items, price to the quality and quantity
Industry Trends
industry’s response to new demands
56
Internal Factors
That Influence Menu Changes
Facility Meal Patterns
existing meal periods - breakfast, lunch and dinner
Concept and Theme
the image may rule out certain foods that do not
blend with its theme and decor
Operational System
costs for new equipment to the successful
production and service of new menu items
57
Pricing Approaches
58
Pricing Approaches
59
Pricing Approaches
= 1 / .40
= 2.5
61
Base Selling Price
62
Prime-Ingredient
Mark-Up Method
63
Mark-Up with
Accompaniment Costs
Entree / Primary Costs $3.15
64
Determining the Price Multiplier
Based upon:
experience or “rule of thumb”
contribution margin
impact of sales mix
does not reflect higher or lower labor cost
assume food cost associated with producing menu
item are know
65
Contribution Margin
Pricing Method
Contribution Margin refers to the amount left after a menu
item’s food cost is subtracted from its selling price.
Two steps in setting base selling price:
1. Determine the average contribution margin required
per guest
Non-Food + Required Profit = Ave. Contribution Margin Required/guest
No. of Expected guests
66
Contribution Margin
Pricing Method
2. Determine the base selling price for a menu item
67
Ratio Pricing Method
69
Simple Prime Costs Method
The term prime cost refers to the most significant costs in a food
service operation: food, beverage and labor.
A simple prime costs pricing method involves assessing the labor
costs for the food service operation and factoring these costs
into the pricing equation.
Three steps:
1. Determine the labor costs per guest
Labour Cost per guest = Labour costs / No. of expected guests
$2.80 = $210,000 / 75,000
70
Simple Prime Costs Method
72
Specific Prime Cost Method
73
Specific Prime Cost Method -
Calculations
Operating Category A Category B
Budget Item Budget % (extensive preparation) (Non-extensive
Preparation)
(1) (2) (3) (4)
Items Items
Food Cost35% 60% of 35% = 21% 40% of 35% = 14%
74
Important Pricing Considerations
The Concept of Value (price relative to quality)
75
Evaluating The Menu:
Menu Engineering
Basic Menu Engineering Process:
76
Defining Profitability
Contribution Margin
77
Defining Popularity
Popular Index bases upon the notion of “expected popularity”
For example:
4 items on a menu and each is assumed to be equally popular,
the sales of each would be expected to be 25%
100% ÷ 4 = 25%
Menu engineering assumes that an item is popular if its sales
equal 70% of what is expected..
For example:
a food item is considered popular if its sales is:
25% x 70% = 17.5% of total sales
78
Menu Engineering Worksheet
Menu Engineering Worksheet
Date: 6/10/00 _________________
Restaurant: ____________________________ Meal Period: Dinner
(A) (B) (C) (D) (E) (F) (G) (H) (L) (P) (R) (S)
Menu Number Menu Item Item Item Menu Menu Menu Menu
Item Sold Mix Food Selling CM Costs Revenues CM CM MM% Item
Name (MM) % Cost Price (E - D) (D x B) (E x B) (H - G) Category Category Classific-
ation
Chicken Plow-
Dinner 420 42% $2.21 $4.95 $2.74 $928.20 $2079.00 $1150.80 Low High horse
NY Strip
Steak 360 36% 4.50 8.50 4.00 1,620.00 3,060.00 1,440.00 High High Star
Lobster
Tail 150 15% 4.95 9.50 4.55 742.50 1,425.00 682.50 High Low Puzzle
Tenderloin
Tips 70 7% 4.00 6.45 2.45 280.00 451.50 171.50 Low Low Dog
Column N l J M
Totals 1,000 $3570.70 $7015.50 $3444.80
K=l/J O=M/N Q = (100%/items) (70%)
Additional Computations: 50.9% $3.44 17.5%
(Box K = Food Cost %; Box O = Average Contribution Margin)
79
Improving The Menu
Managing Plowhorses
80
Improving The Menu
Managing Puzzles
Items high in contribution margin but low in
popular
Shift demand to these items
Consider a price decrease
Add value to the item
81
Improving The Menu
Managing Stars
Items high in contribution margin and high in
popularity
Maintain rigid specifications
Place in a highly visible location on the menu
Test for selling price inelasticity
Use suggestive selling techniques
82
Improving The Menu
Managing Dogs
Items that are low in contribution margin and low
in popularity:
83