Factors Affecting Pricing of Menu in Food and Beverages Outlets

This article discusses the various factors that affect the pricing of menus in food and beverages outlets. It explores the impact of quality, competition, ambiance, portion size, service levels, and sales mix on menu prices. By understanding these factors, restaurant managers can make informed decisions about pricing strategies.

HOSPITALITY
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Processes and creativity of food production systems.........................................................3
2. Roles and responsibilities of Restaurant Manager in context of food and beverages
department..............................................................................................................................5
3. Factors affecting pricing of menu in food and beverages outlets.......................................8
4. Constraints and considerations in planning of menu..........................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality is relation between host and guest or act of individual of being hospitable for
entertainment and reception purpose. Operations management in hospitality comprises of
activities which is done in the field of hotel and restaurant industry. It involves processes like
planning, organising, controlling and decision making operations so that organisational
objectives can be achieved (Reid and Sanders, 2019). JRC Global Buffet is restaurant located in
UK and provide dining experience and offers cuisines around the globe. In this report creativity
of food production systems will be explained. Analysis of roles and responsibilities of restaurant
managers in relation to department of food and beverages will be done. Factors that can affect
pricing of menu in context of food and beverages will be identified. At last, constraints and
considerations in menu planning within beverages and food operations will be analysed.
MAIN BODY
1. Processes and creativity of food production systems
Hospitality organisations offers services related to hotel and restaurant n order to enhance
customer experience. There are different operations in such firms which requires to be manage
and thus managing these processes is known as operations management. JRC Global Buffet JRC
Global Buffet is chain of restaurant situated in UK and provides global dining experience
cuisines from across the globe. Food production system comprise of all organisations that
prepares food items, convert raw materials into food products for final consumers or processing
by other businesses (Heizer, Render and Munson, 2017). JRC Global Buffet is one of businesses
which are include in food production system and does follow process and creativity in such
systems of food and beverages services system.
Process: The main function of JRC Global Buffet is of food production in order to enhance
customer experience and achieve organisational objectives. The steps that are included in
production process are as follows:
Input: This step is concern with putting materials, machinery, items, ingredients and other
raw materials into the food production system of JRC Global Buffet so that it can be converted
into finished product for customers.

Conversion: Next step is procedure that convert raw material into finished products as it
undergoes different activities before becoming end food items. It can be manual or with help of
machines.
Output: This is last stage in food production system as in this phase end product is
presented after conversion. In case of JRC Global Buffet it is finished food dish which is ready
to be served to guests.
This process is common in every food production or food and beverages services systems, the
main difference is that services have activities involved as well. As it involves packaging,
serving, delivering to consumers.
Creativity: This includes different activities like packaging, distributing and retailing in food
and beverages production services systems, as follows:
Packaging: This is one of creativity which can be done in food and beverages services
systems which has to be attractive and appealing so that customer experience can be enhances
(Gibson and Parkman, 2018). If JRC Global Buffet restaurant staff is creative enough in
packaging food in such a way that guests find it attractive then they will be able to achieve
organisational objectives. There are continuous innovation which can be done time to time in
serving food to guests with creative ways so that there experience can be improved.
Distributing and Retail: In food and beverages services systems another creative aspect is
distributing and retailing which can be done in different and effective way so that customer
experience can be improved. Restaurant adopts different platforms like direct selling, online
websites and different food services application to distribute their finished products.
These two aspects can be more creative when it comes to enhance customer experience and
increase profitability for JRC Global Buffet restaurant. These processes and creative aspects if
considered effectively can lead to gain market share and competitive advantage in industry.
Types of F&B services: English service is a very unique and old form of service in which all the food is being
prepared and served in larger portions and served on the guests table in big platters or
bowls. The guests then check the food, once the food is approved by them than only it is
being severed on tables.

 Silver plate service is similar to other services the only difference is that food an
beverage are served in sliver cutlery and crockery. This is an expensive service which is
offered by some hotels as it involves huge costs and investment. Cart service, in this type of service food is partially cooked and carried in a cart to the
guests. In this cart a special portable heating device is attached using which the food is
cooked completely in front of the guest and served hot and according to their instructions. Snack bar service is offered by those hotels and restaurant which have licence to serve
liquor in their premises. For offering this type of service a special area is designed by the
hotel in which there is a big counter and tall chairs are placed on one side where guests sit
and order their preferred dishes and beverages. Table service system is offered to guests in which they are seated on their particular
tables and orders from the menu. The executives are assigned to all the tables who assist
guests in ordering best dishes and satisfy them by serving exactly what customer are
expecting. Room service are particularly for the guests of the hotel visiting and staying in hotel. As
the name suggest this service is provided in the rooms of the guests, they order their food
and beverage in their rooms from the menu. The room service menu are developed by
hotel managers according to the needs and expectations of the customers.
 Self service refers to type of service in which customers helps themselves, the food and
beverages are placed on one counter. Guests pick their plates and chooses and put those
dishes in their plates which the require and want to have.
2. Roles and responsibilities of Restaurant Manager in context of food and beverages department
Restaurant manager is employee who is responsible for managing restaurant and
leading other staff to be effective in operations (Brandon-Jones and et. al., 2016). They are
indulge in processes like selection of workforce, controlling food quality, developing menu,
greeting guests, training and development. There are many roles and responsibilities they need to
perform in order to achieve organisational objectives. Some of them are as follows in context of
JRC Global Buffet:

Roles: Restaurant managers have different roles to perform in JRC Global Buffet restaurant so
that customer experience can be improved, are as follows:
Manage restaurant operation: One of the basic role that restaurant manager perform is
managing operations of overall restaurant and different departments. This is important to
enhance productivity of business operations so that profits can be increased and level of
customer satisfaction will be improved (Ogbeide and et. al., 2017). In context of JRC Global
Buffet, it is equally important that manager perform role of controlling activities in restaurant so
that organisational objectives can be increased.
Plan and develop restaurant marketing strategy: In today's competitive environment it is
essential that businesses employs effective promotional tools so that they are effective in
marketing its products and services. Same in case of JRC Global Buffet restaurant, it is one of
the role that managers perform so that more guests are targeted to have competitive advantage in
industry. This includes planning effective strategies and developing course of plans to execute it
properly so that more customers can be influenced.
Respond to customer complaints: In businesses where customer satisfaction level decides
effectiveness of operations, need arise to be proactive in case of dissonance. Thus it is one of
significant role that restaurant managers to manage complaints and identify quick solutions so
that their experience can be enhanced (Kandampully, Zhang and Jaakkola, 2018). Same in case
of JRC Global Buffet which main objective is to increase customer experience with qualitative
services, restaurant manager essential role is to address the issues and complaints.
Manage and direct employees: One of the basic role that any manager in business
perform is managing and directing staff to work collectively. This process ensure that employees
are working in direction of attaining personal and organisational goals. Restaurant manager of
JRC Global Buffet also manages staff so that there is no conflicts and motivate them to work
with efficiency. This is done to make sure that services provided by staff has same quality which
is required by restaurant to increase customer experience.
Planning menu is one of the very crucial role which is played by restaurant manager, it
includes huge knowledge of market which had to be updated. The managers have to consider all
the new trends, changing preferences of people and customers and all new tastes being
developed by population. The menu have to be every dynamic and satisfactory by which all
different segments of the society can be acquired.

Responsibilities: Restaurant manager is responsible for many operations in JRC Global Buffet
restaurant, are as follows:
Ensuring guest satisfaction: One of the foremost process for that any restaurant manger
will be responsible is making sure that customer satisfaction is enhanced. This can be done by
providing qualitative food and other services. For this manager need to ensure that guests are
treated or served well and staff treat them with smile and positive attitude (Altin and et. al.,
2018).
Evaluate employee performance: Managers in any business are held responsible to
analyse staff performance so that efficient workers and need for training can be evaluated. Same
with case of restaurant manager of JRC Global Buffet, they also have responsibilities to evaluate
workforce so that efficiency can be increased so that customer satisfaction can be enhanced.
Positive working environment: Employees perform effectively when they are provided
with healthy and flexible working premises. This leads to increase in motivation and take more
duties willingly. Thus in case of JRC Global Buffet also, restaurant manager is responsible to
build and manage positive working environment so that efficiency of workforce can be
increased.
Monitor operations and take corrective actions: One of the important function of any
manager in organisation is to supervise processes so that overall productivity can be enhanced
(Llach and et. al., 2016). Same goes with restaurant managers of JRC Global Buffet as well, they
need to manage operations so that customer satisfaction can be improved. They also take
corrective decisions and actions so that deviations can be reduce and operations are bring back to
efficiency.
Minimize waste: Whenever it comes to manage operations in business one of the basic
responsibility is to reduce waste. In context of food and beverages department, restaurant
managers of JRC Global Buffet they are responsible to indulge in waste reduction and
management so that company can become cost effective in hospitality industry.

3. Factors affecting pricing of menu in food and beverages outlets
Pricing policies are framed by company in order to cover its costs and include profits
margins so that survival becomes easy. There are many factors that affect price of product or
services in market. In case of food and beverages outlets, prices in menu include cost of food as
well as services provided in restaurants. For example JRC Global Buffet menu includes cuisines
from across the world and thus prices varies according to different aspects of operations, some of
them are as follows:
Quality of Product: One of the main factor that affect the prices in menu is qualitative
aspect of product. In case of food and beverages outlets, customers visit to experience tasty and
quality food so that they have good experience (Davis and et. al., 2018). Food and dishes
prepared by JRC Global Buffet ensure that they provide quality so that customer satisfaction can
be improved to achieve organisational objectives. Thus menu prices of restaurant is premium
because of its quality and raw materials used, this proves that quality is one of factor that affects
menu prices.
Competition: Pricing policy of competitors are also kept in mind while calculating prices
of product so that more customers can be targeted in market. Keeping prices higher than
competitive business can lead to loss in market share and same pricing can be done along with
enhanced quality. Same in context of JRC Global Buffet manager need to analyse prices of
competitor restaurant who provides same qualitative food and beverages and then decide price,
thus this one of factor that affects pricing of menu.
Ambiance: When customer visit a food and beverages outlets, one thing they notice is
environment and ambiance. They are many restaurant which maintains classic and creative
premises so that customer experience can be improved. JRC Global Buffet restaurant are well
designed and maintained so that customer feel delighted and happy. This is one of essential
factor which managers kept in mind while deciding menu prices and maintenance cost is
included in it (Kessman and McCauley, 2016).
Portion: One of the important factor that managers overlook before deciding prices is
size of portion that customers can order. Small portion prices are comparatively higher as
compared to larger size food items in menu. This is because in making small portion of specific
food item it requires special services and use of raw materials. On the other hand, preparing
larger portion will distribute the cost of different resources and thus prices are kept lower in

menu of JRC Global Buffet restaurants.
Service Levels: There are different services provided by JRC Global Buffet in their
restaurant such as personal and general services. There are difference in pricing strategies as well
according to those services in restaurants. In case of personal dinners, celebrations and events
prices are kept higher so that company can cover all its expenses and add profits margins
according to quality of services staff provides.
Sales Mix: It refers to frequency of specific food items that are selected by different
customers. It has highest influenced on menu pricing strategies as items that are ordered most of
the time, price are kept higher to earn more profits (Secchi, Roth and Verma, 2019). Less or least
liked food items have lower price and in case if they are selected more than their prices are also
kept higher. This need to analyse by manager of JRC Global Buffet restaurants so that pricing
can be done accordingly.
Period of Meal: in some cases it is seen that time on which guests arrive also decides
prices in menu for food items. On week days prices of services provided by JRC Global Buffet
restaurants are kept lower, on the other hand weekends prices are higher. JRC Global Buffet
restaurants provides buffet system for customers and provides cuisines from across the world.
Thus this is also one of important factor which manager needs to analyse before deciding menu
prices.
Number of items in the menu: The menu prices will be affected by the number of items
being offered by the restaurant to the customers according to their needs. The prices are affected
as restaurant have to be prepared and keep their stock up for all the item present in the menu.
Storing of these inventories and raw material includes huge costs and other costs are also
associated with it. Therefore, prices are being affected by the number of item in the menu
developed by the managers.
Thus all the above factors clearly shows that menu prices are influenced by different
elements that need to be analysed before making strategies.
4. Constraints and considerations in planning of menu
Menu planning is management process for food and beverages operation and it forms
base for other managerial and operational activities. There are different hindering and fostering
factor that impacts menu designing, some of them are as follows:

Constraints
Availability of ingredients: There are different types of items that are included in menu
and thus there is need that all ingredients to prepare food items should be available. In case of
JRC Global Buffet when restaurant includes cuisines from all over the world it is important that
raw materials are available. For example, while preparing Indian dishes there is requirements of
different spices and vegetables which need to present in UK so that items are included in menu
while planing by manager.
Availability of Equipment: In preparation of different food items various equipment and
tool are required which need to be installed so that quality can be provided. Thus in planning
menu it is important that all machines are checked and therefore, items are included (Payne-
Palacio, 2016). In case if customer ask for that dish and it will not be available by JRC Global
Buffet this will lead to dissatisfaction of customer and thus effect brand image in market as well.
This this factor can be considered as constraints in planning menu.
Skill of staff: One of the most basic constraints that come across manager while planning
menu for restaurant is skills of employees. It is essential that staff is skilled enough to have
complete knowledge about each and every item present in menu to assist customers to enhance
their experience (Reid and Sanders, 2019). JRC Global Buffet manager also consider this as
roadblock in planning menu for restaurant as it is rare to find such talented and expertise staff
which has complete knowledge about food items.
Type of menu:
There are kinds of menu available in the hospitality industry in terms of providing
services to their respective customers. Menu planning is termed as the planning and careful
making of menu in planned manner. Various types of menus are mentioned as under: Du Jour menu is created for the representation of their special items and dishes which is
of premium quality. This menu changes continuously according to the requirement and
needs of customers in order to serve something new to them which is special. It is made
in order to retain existing customers and attract new customers. Static menu describe the food and beverages which is provided or served by the hotel at
everyday and also available 24*7 in the hotel in order to fulfil the needs and requirements
of customers.

 Day menu is formed for the special days and occasions which offer specific dishes as per
the need of that day. It make on the basis of week, months or some festivals. Dessert menu includes the sweets and desserts which is provided by the hotel in order to
provide special services to them. À la carte is developed for those customers who want have their dishes according to
them. In this prices get fluctuate as per the need and requirement of customer. The choice
of food is considered on the combination of items which they want in their food. Wine and beverage menu is make for those guests who drink and want something
different in their drinks. It include formation and making of drinks as per the need of
customer.
All above factors are considered as constraints by manager of food and beverages department as
they hinder the quality and many food dishes that they want to include to enhance customer
experience. Thus there is need that all such are overcome in order to effective in process of menu
planning and able to accomplish goals of JRC Global Buffet.
Considerations
Know guest and preferences: It is most important and significant factor that need to be
analyse so that menu planning is effective in nature. If manager of JRC Global Buffet restaurants
identifies customers and their needs and preferences and it will include all those dishes that
might be demanded by visitors. For this company need to conduct surveys in market of UK so
that their taste and preferences are identifies and menu is designed accordingly. Managers should
also kept in mind that consumers and their demands keeps on changing thus need arises that
regular changes are made in menu to maintain its quality (Van der Wagen and White, 2018).
Seasonal and local fresh items: There are many food items and ingredients that are
available only in specific seasons of year which increases its demand. Thus there is need that
managers of JRC Global Buffet keep separate section of such items so that they catch eye of
customers. While planning menu it is also important that seasons are mentioned above food
dishes so that customer does not dissatisfied due to unavailability. There are many fruits which
are exported from different countries in UK and some are seasonal as well thus planning for

dishes and including them in menu shall be done effectively. Therefore, this is one of important
consideration that should be taken care while planning menu by managers of JRC Global Buffet.
Menu fits events: These days where more emphasis is given on celebrations and personal
events, it is required that menu is planned accordingly (Slack, 2018). Same in case of planning
menu for JRC Global Buffet this factor should be taken into consideration so that customer
demands can be met. This will also increase demand for personal events and celebrations in the
restaurant which will lead to increase in profit margin. Thus it is important that this factors is
also considered while planning menu for restaurant.
CONCLUSION
It can be concluded from above report that operations management is management
process by which different operational and strategic activities are controlled. It is important in
organisation to improve efficiency of operations and enhance overall productivity of business.
There is process of input, conversion and output process in food production system and
packaging, distributing and retailing as creativity in food and beverages services systems. There
are different roles and responsibilities that are performed by restaurant manager in context with
food and beverages department so that qualitative services are maintained in business. There are
factors like portion size, ambiance, quality of foods, etc. that impact the planning for menu in
restaurant. At last, it will include considerations like seasonal fruits, customer taste, etc. shall be
analysed before planning. Constraints like skill of staff, availability of ingredients and equipment
can create hurdle in planning menu.

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