This presentation discusses the key considerations for pricing menus and accurately costing and pricing menus. It also provides insights on how to attract and retain customers through menu revisions.
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Menu Development, Planning and Design
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Table of Content •Introduction •Key considerations while pricing menus •Accurately costed and prices menus •Conclusion •References
Introduction Menu is an important part for a restaurant as it helps customers in knowing what dishes are offered at a cafe or a restaurant. This presentation is based on Pasco Cafe which is located on a busy street between offices and a railway station. The owner of the business wants to revise its menu in order to attract more customers as well as retain the ones already existing. The presentation explains the key considerations that should be kept in mind while deciding prices of a menu.
Key considerations while pricing menus While developing a new, a new cafe or restaurant should take into account a number of considerations that will help in developing effective menus. These considerations can impact the revenue as well as costs from various sources, some of which are explained below - •Energy costs –These are the costs that are associated with the cost of energy that is involved while preparing a dish. Pasco cafe should take into account these costs as this will help it in determining the costs of various food and beverage items effectively.
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Cont.… •Staffing Costs –These are the costs that are associated with providing salaries and other benefits to the employees. Therefore, Pasco cafe should determine the amount of labour that is put into preparing a particular dish. Thus, this will ease out the process of pricing the products.
Cont.… Business environmental policies and the extent to which they impact the costing of menus •Cost of Produce –This is the cost that is incurred by a business from manufacturing and producing a products. Thus, Pasco Cafe should consider the costs of different fruits as well as vegetables because any change in their costs will have a direct impact on the prices of dishes.
Cont.… •Current Economic Climate –Any major change in the economy will impact the business operations of Pasco Cafe. There can be a sudden increase or decrease in the prices of the food and beverage dishes.
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Cont.… •Seasonality Restrictions –There are some ingredients that are available in a particular season, therefore the prices of such particular dishes can increase. Thus, Pasco Cafe should set prices of seasonal dishes accordingly.
Accurately costed and prices menus Menu ItemTotal SoldMenu PricePortion CostFood Cost % Portion C.M. [1] Total Food Sales Total Food CostTotal C.M.C.M.% Ham Sandwich12£10.95£2.7525.00%£8.20£131.40£33.00£98.4024.00% Tuna Sandwich8£11.95£4.2536.00%£7.70£95.60£34.00£61.6015.00% Salad10£6.95£3.7531.00%£8.20£69.5£21.5£4820.00% Cheese Sandwich5£10.95£3.5032.00%£7.45£54.75£17.5£37.259.00% Crisps4£14.95£5.2535.00%£9.70£59.80£21.00£38.809.00% Veg. Lasagne6£12.95£4.0031.00%£8.95£77.70£24.00£53.7013.00% Veg Burger5£15.95£7.2545.00%£8.70£79.75£36.25£43.5010.00% Totals50£568.5£151£337.75
Cont.… ItemTotal SoldMenu PricePortion CostFood Cost %Portion C.M. Total Food Sales Total Food CostTotal C.M.C.M.% Cappuccino31£6.75£1.9328.59%£4.82£59.83£209.25£149.424.63% Cafe Latte211£6.75£1.7225.48%£5.03£362.92£1,424.25£1,061.3331.54% Espresso71£6.95£1.5322.01%£5.43£108.63£493.45£384.8210.61% Hot Chocolate19£7.50£2.2329.73%£5.27£42.37£142.50£100.132.84% Tea78£5.95£1.5526.05%£4.40£120.90£464.10£343.2011.66% Cafe frappé129£6.45£1.6826.05%£4.77£216.72£832.05£615.3319.28% Cold Coffee130£6.95£1.7625.32%£5.19£228.80£903.50£674.7019.43% Total669ACM =£4.98£1,140.70£4,469.10£3,328.93100.00%
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Conclusion From the above presentation, it can be concluded that there are various factors that should be kept in mind while deciding prices of products like change in climate, availability of raw ingredients, energy costs as well as staffing costs. Also, various calculations of sales, different costs involved etc. should be carried out in order to meet the requirements of customers effectively and thus gain their loyalty.
References •Saaty, T. L. and De Paola, P., 2017. Rethinking design and urban planning for the cities of the future.Buildings. 7(3). p.76. •Salamone, F. and et.al., 2017. Design and development of a nearable wireless system to control indoor air quality and indoor lighting quality.Sensors. 17(5). p.1021.