CHAPTER SEVEN:
THE MENU
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Factors to Consider
•
Common Menu Types
•
Methods for Pricing
•
Determining a Menu’s
Design and Layout
2
FOOD QUALITY
•
What many restaurant patrons consider as
the most important factor when selecting a
restaurant
•
Ranks above service, value, and even
cleanliness
3
CONSIDERATIONS IN MENU
PLANNING
•
Needs and desires of guests
•
Capability of cooks
•
Equipment capacity and layout
•
Consistency and availability of ingredients
•
Price and pricing strategies
•
Nutritional value
•
Contribution theory
•
Accuracy in menu
•
Actual menu Items
•
Menu design and layout
•
Standard recipes
•
Food cost percentage
4
CAPABILITY/CONSISTENCY
•
Standardized recipes
•
List quantities of ingredients
and step-by-step methods
to produce a quality
product
•
Menu complexity
•
Number of meals served
•
Number of people to
supervise
5
EQUIPMENT
•
Purchase the right equipment to
achieve maximum production
efficiency
•
Many establishments plan the
equipment according to the menu
•
Efficient layout
•
Systematic flow of items from receiving
clerk to guests assures operational
efficiency
•
Avoid over use
•
Too many menu items requiring one
piece of equipment may slow service
6
AVAILABILITY
•
Constant, reliable source of supply
•
Reasonable price
•
High-quality ingredients
•
Take advantage of seasons
•
Use seasonal or daily menus
7
PRICE
Factors in building price-value:
•
Amount of product
•
Quality of product
•
Reliability or consistency of product
•
Uniqueness of product
•
Product options or choices
•
Service convenience
•
Comfort level
•
Reliability or consistency of service
•
Tie-in offers or freebies
8
VALUE CREATION
•
2 components
•
What you provide
•
What you charge for it
•
To build value, you need to:
•
Increase the perception of
value of what you provide
•
Lower the price your charge
for it
•
Do both of the above
9
PRICING STRATEGIES
2 main ways to price a menu:
•
Comparative approach
•
Analyzes competitions’ prices and determines selection of
appetizers, entrees, and desserts
•
Individual items then selected and priced
•
Cost of ingredients must equal predetermined food cost percentage
•
Ratio method
•
Price individual item and multiply it by the ratio amount
necessary to achieve the desired food cost percentage
•
May lead to weighted average approach
•
food cost percentage, contribution margin, and sales volume are
weighted
10
FOOD COST PERCENTAGE
•
Varies with sales
•
Target is about 33% of sales
•
Calculating food cost percentage:
Opening inventory + purchases – closing inventory =
Cost of food consumed
Food cost/Sales of food = Food cost percentage
EXAMPLE:
Opening inventory
$10,000
sales=$200,000
+Purchases
$66,6666
Food Cost Percentage=
=Total food consumed $76,660
$66,666/$200,000= 33%
-Closing inventory
$10,000
=Cost of food consumed $66,6666
11
NUTRITIONAL VALUE
•
Greater public awareness of healthy food and individual
wellness
•
Demand for healthier items like chicken and fish increasing
•
Changes in type of cooking oil
•
Boiling, poaching, steaming, roasting, etc. as opposed to
frying
•
Lower-fat menu items
•
More meatless and vegetarian options
12
CONTRIBUTION MARGIN
•
Difference between the sales and the cost of the item
•
Amount goes towards covering fixed and variable
costs
EXAMPLE:
steak selling price $10.95
-steak cost
$5.00
=contribution margin $5.95
13
MENU ITEMS
•
Independent restaurants are more creative than chain restaurants
•
Menu items selected depend on type of restaurant
•
Appetizers and soups
•
6-8 adequate for most establishments
•
Salads
•
Preferred starter in many restaurants
•
Entrees
•
At least 8 in a table-service restaurant
•
Desserts
•
Can be purchased, made, or finished off in-house
•
Matching/pairing
•
Couple a type of wine with a general class of food
14
MENU TYPES
•
Dinner-house
•
Separate similar entrees
•
A la carte
•
Individually priced items, most often used menu
•
Table d’hote
•
Selection of several dishes from which patrons make a complete meal at a
fixed price
•
Cyclical
•
Repeat every few days, used in institutions
•
California
•
Can order any menu item at any time of day
•
Tourist
•
Used to attract tourists to a particular restaurant
•
Degustation
•
A sample of the chef’s best dishes
15
MENU ANALYSIS
•
Should be a balance between a
menu too high in food cost and
too low in food cost
•
Menu engineering
•
Best menu items are those with
highest contribution margin per
unit and highest sales
•
It is recommended to analyze by:
•
Individual menu items
•
Categories of menu offering
•
Meal periods or business categories
16
PRICING GUIDELINES
•
Use odd increments for cents
•
Do not right price increases over old prices
•
Resist increases that raise the dollar amount of an
item
•
Give items that have been drastically increased in
price a less noticeable menu spot
•
Try to reduce large portions before raising prices
•
Never increase price of whole menu
•
Put “market price” on items that fluctuate
•
Do not list menu items according to cost
17
DESIGN AND LAYOUT
•
Range form one to several
pages
•
Variety of shapes
•
Generally 9x12in or 11x17in
•
Printing and artwork should
harmonize with theme of the
restaurant
•
Easy to read and understand
•
Strong focal point
18
FOCAL POINTS
•
Focal point of a
single- page menu
•
Focal point of two- or four-page
menu
19
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