Costing, Pricing and Design of Menu - Food and Beverage Operations Management

This report discusses the costing, pricing, and design of menus in the food and beverage industry. It explores the considerations for planning and designing menus, as well as the importance of menu costing and pricing. The case study of The Ledbury restaurant is used to analyze menu design and effectiveness. Various factors such as cost of raw materials, rent, labor, and promotion are considered in menu planning and design. Sustainable menu planning considerations are also discussed.

Food and Beverage Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Costing, Pricing and Design of Menu..........................................................................................1
Cost Considerations for Planning and Designing of Menu.........................................................2
Design Considerations For Menu of Restaurant..........................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
This is important for the business organization to manage and maintain their operations in
order to keep performing effectively with in the market place. There are different operations are
performed by the management of the company to keep their performance and profit hifg to meet
all the business targets. This report will be discussing Menu Board of The Ledbury which is one
the most famous restaurant around, it was also included in list of top 50 restaurants around the
world for its services (Halloran and Persson, 2018). Factors that are related to pricing, costing
and design also will be considered in the report. The cost consideration also will be discussed in
planning and creating menus for food and beverage outlet. Various Menu planning
considerations also will be identified and discussed in the study.
Costing, Pricing and Design of Menu
There are different type, size and shape f menus are used by the restaurant, hotels and
food and beverage outlets in order to provide range of options to their customer to select their
choice of food or beverage. For the evaluation process of Restaurant Menu The Ledbury is
selected. The menu of The Ledbury is analysed on perspectives like costing of menu, pricing of
dishes and design of menu. These considerations are important for the restaurant to attract people
and order something.
Costing of Menu
Costing of menu is considered as cost of process of developing menu of restaurant, hotel
or food & beverage outlet. This is one of the marketing tool that is used by food and beverage
sector organization to select them over other competitors in market place. This is a process that is
used by the design engineers to determining the derived form beverage and food products. This
is important to derive the cost of menu in order to evaluate the pricing of food items in the menu
board. This also can help the organization to evaluate their effectiveness of pricing of food as per
the cost of the Menu. All over head cost of various aspects is included in the food product in
order to develop proper menu for a restaurant. The Menu of The Ledbury is effective with this
perspective. All these factors are considered in the menu designing process.
Menu Pricing
Menu pricing is a process that is consists of calculations of cost of preparing a food
product in organization along with other expenses (Filimonau and Krivcova, 2017). This can
help the restaurant to maintain marginal profit in market place. The pricing of the Menu is
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effectively performed by The Ledbury to maintain their effectiveness with profit and price
recovery that is caused in preparation of food.
Design of Menu
The design of menu is one of the major factor that can lead to main expression of
restaurant in mind of customer. This is important for the restaurant to design their menu
effectively in order to provide clear information regarding options that are provided to the
customers. There are different things are considered by The Ledbury in the process of menu
designing. Menu of The Ledbury is very simple and shorter. It is provided on thick white paper
that is made of recycled paper. The ingredients that are used in the particular dish are provided in
detailed manner to make customer aware of specific dish efficiently.
Cost Considerations for Planning and Designing of Menu
There are different considerations are need to be made in order to plan and design the
menu of restaurant in order to keep it as per the operational cost and profit of organization. Some
of the cost factors that are most crucial for menu planning and designing are- Cost of raw
material that is used in preparation of food products, Rent of the location or equipments of
cooking, labour cost in preparing food, capital that is used by the restaurant to promote their
products and services in market place. All the taxes that are paid by the organization to
government also need to be considering in the costing of menu of restaurant. In this process there
are some other expenses are need to be considered in order to neutralised all the expenses along
with effective marginal profit. By this process restaurant can effectively design their menu with
high efficiency.
Sustainable Menu Planning Considerations For Menu of Restaurant
There are different designing considerations are need to be made in order to make menu
more appropriate and effective to make it attractive enough for customers. Some of the main
considerations that are used in the menu designing processes are- scanning pattern of customers,
proper structure, delivery of information effectively, selection of proper paper and layout, colour
combination in with in the menu and Regular Updates (Leung, Josiam and Moody, 2019). These
all things are need to be considered in order to decide menu for restaurant.
Scanning pattern of customer eyes need to be analysed in order to make the menu more
eye catching and attractive. The information that is provided in the menu board should be
perfect, updated and in specifically detailed manner to avoid any kind of conflict. The selection
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of paper and colour combination is also important in designing process. Better and effective
colour combination can make a menu more effective and attractive for customers. Right selection
of paper also can improve the effectiveness of menu for customers (Lo, King and Mackenzie,
2017). This is also important for the restaurant to maintain regular updates in order to keep
people updated of changes in the menu board of organization.
CONCLUSION
This report is concluding the importance of costing of restaurant menu, pricing of menu
and design of The Ledbury and its effectiveness for customer and their business. Various costing
factors are considered for the menu of the restaurant. Different cost that is need to be spent by
organization for menu also had been explained in the study. The menu of The Ledbury has been
analysis for costing, pricing and designing perspective in order to learn about different
consideration for new menu designing. Various designing factors that are need to be considered
for menu designing also has been considered in the report.
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REFERENCES
Books and Journals
Filimonau, V. and Krivcova, M., 2017. Restaurant menu design and more responsible consumer
food choice: An exploratory study of managerial perceptions. Journal of cleaner
production. 143. pp.516-527.
Halloran, A. and Persson, M., 2018. Joining Forces: Takeaways from the Designing Your Menu
of Food Policy Solutions.
Leung, X.Y., Josiam, B.M. and Moody, B.M., 2019. “I’d like to order with a server.” an
experimental study of restaurant menu performance. Asia Pacific Journal of Tourism
Research, pp.1-14.
Lo, A., King, B. and Mackenzie, M., 2017. Restaurant customers’ attitude toward sustainability
and nutritional menu labels. Journal of Hospitality Marketing & Management. 26(8).
pp.846-867.
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