Menu Development, Planning and Design - Desklib

This article discusses menu development, planning and design for maximizing profitability in the food and beverage industry. It covers key considerations for costing and pricing menus, approaches to menu costing and pricing, and producing an in-depth plan for menu development. It also provides recommendations for improvement based on tests and evaluation of the menu. The article is relevant for students studying hospitality management, food and beverage management, and related courses in colleges and universities.

Menu Development,
Planning and Design

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Determining the key considerations which need to be taken into account when costing and
pricing menus...............................................................................................................................3
Produce accurately costed and priced menus to meet a range of customer requirements...........5
Approaches to menu costing and pricing and uses of effective methods to accurately cost and
price menus to maximize profitability.........................................................................................5
Produce an in-depth plan for menu development including KPIs to measure success................5
Test and evaluation of the menu produced..................................................................................6
Making justified recommendations for improvement based on tests and evaluation of the menu
......................................................................................................................................................6
A realistic plan to develop a menu that meets customer and business requirements to maximise
profitability..................................................................................................................................6
Producing a menu which meets customer and business requirements to maximise profitability
of organization.............................................................................................................................8
Producing a realistic menu using a fully researched and costed plan that meets the overall
business objective of organization...............................................................................................9
Recommendations for improvement based on tests and evaluation of the menu........................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Menu planning is the process of selecting and taking a decision about each meal
including of the main dishes, side dishes and desserts. In other terms, the menu
planning and development is the guide which cover up the sourcing of the fresh produce
to focus on the food cost. Menu planning is the one of the most important aspect in the
food and beverage industry (Papageorgiou, Singh, Papageorgiou, Chudasama and
et.al., 2019). The restaurant industry has required to create a well-structured menu from
which they can be able to fulfil the desires and wants of the customers. The Ikoyi
restaurant which is located in London, UK where it is quite famous for their services
and providing the best satisfaction to the customers from where they can be able to
grow and develop in definite manner.
However, report will illustrate the different aspects where a proper menu
planning, development ad designing will take place. It will include the key considerations
in regard to costing and pricing menu and produce a menu to meet the range of
customer level. Also, it will analyse the approaches of menu costing to maximize the
profit and a depth plan for menu development. Along with this, the different techniques
and plan will be made to obtain the definite amount of profit.
MAIN BODY
Determining the key considerations which need to be taken into account when costing
and pricing menus
Menu planning is the most important factor which a restaurant has to consider
where they should also keep their focus on the costing and pricing of the menu from
which they can be able to easily attract the maximum number of customers and can
increase their profitability. The Ikoyi restaurant owner has to take some actions and
implementation while creating and budgeting the menu prices which will help them to
generate increasing amount of outcome (Ershad Sarabi, Han, L Romme, de Vries, and
Wendling, 2019). There are different types of major consideration the restaurant needs
to understand and implement for obtaining the better results. There are mainly two
aspects which an Ikoyi needs to follow such as customer requirement and business
needs. The restaurant has to keep their focus on such elements for getting the better

results. The impact of the cost and revenue occurs from various resources in the
restaurant business and can get the better results and outcome.
Operational cost
Rent and utilities: The Ikoyi restaurant has to consider the operational costing where
the usage of the electricity, water, internet things and such kind of elements has to
consider while putting and setting of the prices of the items of the menu. This is
important for getting the definite amount of profit (Croese, Green and Morgan, 2020).
Food cost: The restaurant also has to purchase the raw materials for cooking of the
food where it also costs and put the impact on the menu pricing and provide better
outcome.
Marketing: Advertising and promotional cost comes approximately 5% where it is
important for the restaurant to consider this for effective result.
Revenue figure: The term revenue simply defines as where the amount or money
which the business obtains from the different revenue streams and can obtain more
profitability. The Ikoyi restaurant sales the food and beverages in the fixed amount of
cost where it is known as revenue. Thus, revenue income is earned on monthly and
yearly basis and known as sales revenue, total revenue and turnover. A calculation can
be done as Revenue = price x quantity.
Labour cost: Labour cost simply means salaries of the employee working over there
where the restaurant has to pay the amount to the employee from where the Ikoyi can
get the better outcome (Pusiran, Janin, Marzuki and Boonyanmethaporn, 2021).
Marketing: Advertising and promotional cost comes approximately 5% where it is
important for the restaurant to consider this for effective result.
Cost to profit ratio: The calculation of the restaurant from evaluating and measuring
the profit margins and income statement then this process is utilized. These can be
calculated as:
Gross profit margin: Gross profit / net sales x 100
Operational profit: Operating profit / net sales x 100
Net profit: Net income / net sales x 100

Produce accurately costed and priced menus to meet a range of customer requirements
The Ikoyi restaurant has to cost and priced the menu accurately from where they
can be able to meet the customer requirement and needs in definite manner. Thus,
restaurant should calculate the ideal food cost percentage where for measuring this it
will require the total food cost and total food sale. For example: total food / food sale =
Ideal food cost percentage.
Example: Let's understand that the total food cost £8 and total food sales £15 = £9/16
will result as 0.56 × 100 = 56%
However, some more food cost formula includes
Food cost = initial inventory + purchases — ending inventory/ food sales
This above mentioned formulae is used for calculating the food cost percentage where it
will help the Ikoyi restaurant to identify the profit margin in definite manner and can
provide the effective results to the customer. The customer always looks for the items
which are affordable where the proper calculation by the restaurant will help them to put
the appropriate pricing of the food menu and can satisfy the needs and requirement of
the customers (Jiang and Ma, 2020).
Approaches to menu costing and pricing and uses of effective methods to accurately
cost and price menus to maximize profitability
The Ikoyi restaurant is required to adopt some approaches to the menu costing
and pricing from where they can be able to maximize the profitability in definite manner.
The Ikoyi restaurant can use the strategy by understanding the restaurant prime cost
and conduct the recipe costing from where the restaurant can be able to analyse and
identify the cost expenditure in definite manner. (Wang, Xue, Zhao and Wang,
2018)However, the restaurant also required to calculate the plate cost and determine
the food cost percentage which will help them to evaluate the profitability they can earn
and generate in definite manner. Also, the restaurant is required to fulfil the needs and
requirement of the customer which will help them to attract more customer and can
provide effective outcome.
Produce an in-depth plan for menu development including KPIs to measure success
In general, it has been already known that in the menu planning and
development it requires KPI to evaluate the organizational success and can be able to

put their contribution in definite manner (da Costa Maynard, Zandonadi, Nakano and
Botelho, 2020). The KPI simply terms as key performance indicator where they target
the new customer and measure their success and affects the business of Ikoyi
restaurant and enable them to grow and develop in definite manner.
Test and evaluation of the menu produced.
The restaurant has to test and evaluate the food menu which has been produced
where it will ensure the menu items and its prices in definite manner from where they
can be able to obtain profitable outcome.
 The restaurant has to use key performance indicator
 A proper collection of feedbacks and reviews
 Analysis of sale and its profitability
 Also, they can take some suggestion and review from the marketing websites
 They should measure the overall success of the restaurant
Making justified recommendations for improvement based on tests and evaluation of the
menu
 The restaurant should place the prices of the food items in affordable manner
 Proper feedbacks should be taken
 Highlight the menu items
 Utilization of iconography to attract the customers.
A realistic plan to develop a menu that meets customer and business requirements to
maximise profitability
A restaurant business is required to create the menu of the food items in the
definite manner where it can meet the customer and business needs and requirement
which can provide the maximum amount of profitability. However, the Ikoyi restaurant
has to keep their focus on the customer desires and wants and should be able to serve
their requirement in definite order (Santalova, Balakhanova, Kuzmina and Charykova,
2021). Accordantly, here producing the realistic plan to develop or create a menu which
can help the Ikoyi to meet the customer and business requirement.
Creation of menu: The menu creation is the major important factor to be considered
where the Ikoyi has to understand this concept in effective manner from which they can
be able to achieve their set goals and targets. In this process, the restaurant has to

implement the market research where they should identify the style, decor and
ambience which the customer needs and always looks for where it will help the Ikoyi to
attract the maximum number of customer at the place. The main reason behind this
concept or a process is to provide the uniqueness in the menu from where the food
dishes can be liked demographically and geographically customer and can be able to
approach the consumer in wider population (Gurung, 2021).
List of core ingredients: In the process of menu planning and creation, the Ikoyi
restaurant has to select and add the ingredients which can serve the unique taste to the
customer and can make the food more delicious, healthy and with multiple flavours. A
customer always looks for something different and likes to taste the new flavour where
adding some core ingredients will help them to provide the food taste in healthy and
unique way.
Supply chain: Once, the process of understanding the menu concept and selecting of
the ingredients has been done, now it comes to understand and adopt the different
supply chain management which is also an important factor to be considered and can
provide the better results and growth to the Ikoyi restaurant (Degtyaryova,
Shcherbakova and Katerinich, 2022).
Costing of the menu items: When so ever, a menu development and creation of the
process take place the restaurant always should take the decision by keeping their
focus on the customer, and business profitability as well. Thus, the Ikoyi restaurant has
to put the menu prices affordable and quality services which will help them to attract the
customer in definite manner.
Visualize plating: This factor and process is important one to approach the maximum
number of customers as it includes the process of presenting the food item which puts
the great impact on the customer desire and experience. A customer has a kind of
mentality and desire where the food must be look very delicious by its posture and with
full of flavours (Hall, 2020).
Testing the kitchen: The last process is to test the kitchen and tasting of the food
before serving the customer from where the Ikoyi restaurant can be able to ensure the
taste of the food is good and can serve to the customer from which it increases to obtain
the good feedback from the consumer.

Producing a menu which meets customer and business requirements to maximise
profitability of organization
The restaurant business is growing and developing in day to day life where the
Ikoyi restaurant has to keep their focus on producing the menu which can meet the
business requirement and can maximize the profitability. The business needs includes
product quality standards, legislation, menu balance, creativity and skills. Here,
demonstrating these above mentioned points in the detailed manner.
Appropriate sources: The Ikoyi restaurant has to adopt the appropriate sources which
help them to grow and increase their profitability in definite order. The restaurant has to
maintain the health and safety at the place which will avoid the risk and can adopt the
nutritional food items (Gao, 2020). Along with this, the restaurant also required to
calculate and illustrate the profit margins which will support the organization to develop.
Resources and skill: This process aim to increase the utilization of the activities like
health trainings session for the staff development where they can be able to keep the
kitchen and restaurant area clean and hygiene. Proper serving of the resources will
enable the staff members to increase their efficiency and can avoid the wastage of the
food and can acquire the good feedbacks from the consumer.
Menu balance and creativity: The Ikoyi restaurant has to look for the balanced profits
where they can be able to balance the food cost, menu prices and finance areas from
where they can be able to put the effectiveness. The mentioned restaurant can provide
the stylish balance of food which will make the customer satisfied.
Legal areas: The restaurant has to consider the area of menu labelling legislation
where they can be able to cover up and understand the level of food and beverages.
The restaurant should deliver the appropriate and right information about the food
including the different types of minerals, calories, fat and such more (Khamidovich,
2021). However, it will help the Ikoyi to serve the best and healthy food item as per the
needs and desire of customer.
Producing a realistic menu using a fully researched and costed plan that meets the
overall business objective of organization
The Ikoyi restaurant has to produce the fully researched and costed plan which
can help and support them to meet the overall business objective and areas. However,

the restaurant can use the different strategies and tactics like KPI model and also can
measure the profits and margins where it will provide the beneficial outcome and results
in definite manner (Kim, Tang and Bosselman, 2018). Adopting such model and tactic
will enable the restaurant to grow and develop effectively.
Recommendations for improvement based on tests and evaluation of the menu
 The restaurant can check and evaluate the food colour before serving and can
garnish it in definite way.
 The texture and shape of the food ingredients should be in appropriate size
which reflects the experience and expertise.
 Flavour should be according to the dish
 The most important evaluation of freshness should be undertaken
CONCLUSION
The above mentioned report has concluded the brief about the menu
development, planning and designing where it is essential to attract the maximum
number of consumers. The report has included the different area and aspects of the
menu planning and provided the appropriate information in regard to menu pricing and
costing. Along with this, a development of the plan has been taken place to fulfil the
needs and requirement of the customer and business area in definite manner from
where the mentioned restaurant can increase their profitability respectively.

REFERENCES
Books and Journals
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Sustainability indicators in restaurants: the development of a
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Degtyaryova, T.V., Shcherbakova, N.V. and Katerinich, O.A., 2020. Loyalty
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business. In Growth Poles of the Global Economy: Emergence, Changes and
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Ershad Sarabi, S., Han, Q., L Romme, A.G., de Vries, B. and Wendling, L., 2019. Key
enablers of and barriers to the uptake and implementation of nature-based
solutions in urban settings: A review. Resources. 8(3), p.121.
Gao, F., 2020, July. Optimization Layout of Marketing Management Information System
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Gurung, T., 2021. Customer satisfaction in restaurant business: An initiative for
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Hall, C.M., 2020. Improving the recipe for culinary and food tourism? The need for a
new menu. Tourism Recreation Research. 45(2), pp.284-287.
Jiang, J. and Ma, Y., 2020. Path planning strategies to optimize accuracy, quality, build
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Santalova, M.S., Soklakova, I.V., Balakhanova, D.K., Kuzmina, E.Y. and Charykova,
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Wang, L., Xue, X., Zhao, Z. and Wang, Z., 2018. The impacts of transportation
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