Menu Development, Planning and Design

This presentation explores the importance of menu in a food service operation, including menu costing and pricing. It discusses key considerations such as price of competitors, affordability, environmental policy, and nutrient content. The presentation concludes with a summary and references.

MENU DEVELOPMENT,
PLANNING AND DESIGN

Table of Contents
 INTRODUCTION
 MENU COSTING AND PRICING
 KEY CONSIDERATIONS
 CONCLUSION
 REFERENCES

Introduction
 The importance of menu to a food service
operation cannot be emphasized too often.
 Menu is also called 'the driver' of a food
service operation.
 The chosen restaurant for this report is The
Sheffield Tap,
 It offers range of products with simple and
elegant ambiance.

Menu
 Customer prefer new and innovative food products
with healthy ingredients.
 As per the research, it has been analyzed that after
pandemic, majority of the customer prefer hygienic
restaurants, nutrient products and vegan food items.
 By considering current market trend, The Sheffield
Tap also design its own menu in which different
variety of food products added that helps to attract
new customers.

Menu Costing and Pricing
MENU ITEM Menu Price Plate Cost %
Contribution
Margin Quantity Sold Net Income Total Cost Popularity
Horsehill Salad w/
Chix 15 4.45 29.67% 10.55 9 135 40.05 2.04%
Horsehill Salad 10 3.85 38.50% 6.15 12 120 46.2 2.72%
SouthWestern Salad 12 4.09 34.08% 7.91 42 504 171.78 9.52%
Cobb Salad 12 3.05 25.42% 8.95 34 408 103.7 7.71%
Caesar Salad 10 1.67 16.70% 8.33 8 80 13.36 1.81%
Caesar Salad with
Chicken 12 2.46 20.50% 9.54 9 108 22.14 2.04%
Caesar Salad with
Shrimp 12 4.89 40.75% 7.11 5 60 24.45 1.13%
Cheese Quesadilla 10 3.45 34.50% 6.55 15 150 51.75 3.40%
Quesadilla with
Chicken 12 4.65 38.75% 7.35 18 216 83.7 4.08%

Menu Contd…
Quesadilla with Shrimp 12 4.95 41.25% 7.05 9 108 44.55 2.04%
Reuben Sandwich 10 2.95 29.50% 7.05 22 220 64.9 4.99%
Burger 11 3.59 32.64% 7.41 24 264 86.16 5.44%
Burger - Cheese 12 4.05 33.75% 7.95 22 264 89.1 4.99%
Burger - Bacon 12 3.25 27.08% 8.75 10 120 32.5 2.27%
Burger - Cheese & Bacon 12 4.39 36.58% 7.61 15 180 65.85 3.40%
Turkado 9 3.81 42.33% 5.19 49 441 186.69 11.11%
Lasagna 12 4.17 34.75% 7.83 24 288 100.08 5.44%
Fish n Chips 10 4.32 43.20% 5.68 50 500 216 11.34%
Meatloaf 12 3.12 26.00% 8.88 36 432 112.32 8.16%
Duck Enchiladas 12 3.89 32.42% 8.11 22 264 85.58 4.99%
Chili Entrée 8 2.5 31.25% 5.5 6 48 15 1.36%
Subtotal main dishes 237 77.55 689.62% 7.59 441 4910 1655.86

Main Sources of Revenue from Menu
 The highest revenue generating items
are:
 These five items account for around
46% of the total revenues of firm.
 Restaurant has to focus over these
items and
 frame strategies for increasing its sales.
Items Revenues
South Western Salad 504
Cobb Salad 408
Turkado 441
Fish n Chips 500
Meatloaf 432
Total 2285

Use of energy for sustainable food production contd.
 Adopting fixtures and equipment in restaurant that consumes less energy.
 It will reduce costs of restaurant increasing profits.
 Energy cost means the costs involved in preparing the food.
 These are considered in creation of menus from perspective of business
requirements.
 It aims at making optimum utilization of the resources for business.

Use of energy for sustainable food production
 The energy is important resources
that is required to be used properly
and appropriately.
 Restaurants has to ensure that
optimum utilization of the energy is
made.
 It should have energy efficient
freezers, ovens and other kitchen
equipment.
Energy Cost
Heating 69.3
Lighting 49.5
Water 19.8
Insulation 39.6
Others 19.8
Total 198

Staffing Cost for menu
 Labor cost is on average 30% of revenues.
 Types vary according to size and type of restaurant.
 The labor costs include chefs, waiters and others
employees.
 They are staff who make the dishes and serve them
to consumers.
 It is essential cost that is considered in preparation
of the menu.

Calculation of staffing Cost for menu
 Labor cost is on average 30% of
revenues.
 The labor costs include chefs,
waiters and others employees.
 The staffing cost in present case is
28% of total revenues.
Labour Cost
Chefs 301.6
Waiters 92.8
Workers 69.6
Total 464

Total Cost Statement of Menu
Cost Statement Amount
Revenues 4910
Materials 993
Labor cost 463.4
Energy Cost 198.6
Total 1655
Gross profit 3255
Fixed Cost 800
Marketing 150
Profit 2305

Cost to Profit Margin
 It refers to percentage of revenues that restaurant retains from the total revenues.
 The cost profit margin of restaurant is adequate.
Cost to Profit Margin Ratio Sales – COGS / Sales
4910 – 1655 / 4910
66.29%

Break Even Point
 The Break even point shows the point at which it will cover all the cost.
 To cover the cost Restaurant has to earn revenues of 1206.
Break Even Point
BEP = Fixed Cost / Contribution Margin
1206.76

Key considerations when costing and pricing the menus
 Price of competitors
 Affordability
 Environmental policy
 Nutrient content and customer
satisfaction
 Labor cost

Key considerations contd..
Price of competitors:
 Quoted restaurants make sure that they considered price which is used by
competitors for specific food products.
 This in turn assist the business to assign specific price that helps to attract
customers towards it.
Affordability:
 Due to pandemic most of the customer do not prefer restaurants due to hygiene
issues
 The Shaffield tap ensured income level of customers is considered for pricing.

Key considerations
Environmental policy
 It outline the organization's commitment in order to reduce its
impact on environment
 Ensure that it do not leave carbon footprint and food wastage so
that it contributes towards sustainability as well.
 Nutrient content and customer satisfaction:
 Ensuring that the food contain proper nutrients as an ingredient
so that it attracts range of customers towards it.
 It lead to satisfied the customer and encourage them to visit the
place.

Conclusion
 It could be summarized from the above
report that menu planning is an important
task.
 It has to be prepared very appropriately.
 It requires the management to consider both
the customer expectations and business
requirements.
 The menu prepared for business has to meet
the goals of business.

References
 Barrett, C. B. and et.al., 2021. Foresight and trade-off analyses: Tools for science
strategy development in agriculture and food systems research. Q Open. 1(1).
p.qoaa002.
 Chen, J., and et.al., 2018. Dynamic pricing for deteriorating products with menu
cost. Omega. 75. pp.13-26.
 Escrig-Olmedo, E. and et.al., 2019. Rating the raters: Evaluating how ESG rating
agencies integrate sustainability principles. Sustainability. 11(3). p.915.
 Gautier, E. and Bihan, H.L., 2018. Shocks vs menu costs: Patterns of price
rigidity in an estimated multi-sector menu-cost model. Review of Economics and
Statistics. pp.1-45.