Menu Development Planning and Design

This presentation focuses on menu planning and development for food outlets, with a specific case study of Steak and Co. steakhouse restaurant in London. It covers key considerations for costing and pricing menus, including direct and indirect costs, volatile food costs, pricing strategies of competitors, service costs, and staffing costs. The presentation also discusses approaches to menu costing and pricing, such as portion cost, raw food cost item, pricing by competition, and demand and supply models. A detailed plan for menu development is provided, including KPIs to measure success, such as cash flow statements, cost of goods sold, sales records, employee performance, meal preparation time, wastage and spoilage per meal, and revenue per available seat per hour.

Menu planning and
development

Contents
 Introduction
 Key considerations while costing and pricing menus
 Accurately costed and priced menus to meet a range of customer requirements
 Approaches to menu costing and pricing
 Detailed plan for menu development, including KPIs to measure success
 Conclusion
 References

Introduction
 Menu planning and development is associated with determining the plans and strategies
in order to develop an effective menu.
 There are various key considerations and constraints that need to be focused while
planning and designing the menu for a food outlet.
 Steak and co. steakhouse restaurant in London is planning to revise their menu to
attract more customers and retain their existing customers.
 In this presentation, key considerations of costing and pricing menus are evaluated for
effective development of menus.
 To meet customer requirements, an accurately costed and priced menus is produced in
this presentation. It includes analysis of approaches of menu costing and pricing using
effective methods.

Key considerations while costing and pricing
menus
 Menu planning and designing is a thoughtful process which determines the extent of
customer base for a restaurant or food outlet.
 The costing and pricing of menus takes a in-depth approach to effectively formulate a
menu which is best suited to an organisational availability of resources.
 Also, menu is the first thing that is handed over to a customer as soon as they take their
respective seats.
 In the next slide are the key elements that are taken into account through steak and co.
while costing and pricing their menus.

Continue
Direct Costs: It refers to the cost which is directly associated with the relevant food dishes. It is incurred on the procurement of
ingredients, raw materials required in preparation of food etc. it also includes the cost which the restaurant have to bear due to
spoilage of food ingredients and wastage in the process of making.

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Indirect Costs: It refers to the cost which is incurred on the purchase of necessary equipment's and appliances in order to
facilitate cooking. For instance, microwave and other utensils etc. that are acquired for preparing meals is a type of indirect
cost for the restaurant.

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Volatile Food Costs: It refers to the cost of those food ingredients and items the prices of which keeps changing in the
market. The prices of some vegetables and meat keeps fluctuation due to seasonal, economical and other general factors. For
instance, the restaurant has to keep track of prices of steak in the process of effective menu planning.

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Pricing Strategies Of Competitors: Examining competitors in the market
is another important factor that should be taken into consideration while
developing effective menu. The restaurant should evaluate and check
prices of identical food items which are offered in other restaurants.
Consumers are tend to switch their preferences if same item if priced at
lower price in some other food outlet.

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Service Costs: The services offered by a restaurant determines the availability of consumers to a major extent. A consumer is willing to
pay more for the experience that they had for outstanding services. Therefore, the restaurant should spend on décor and attractive
patterns and formats of menu.

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Staffing cost: it is the cost which is incurred in the terms of salaries and monetary incentives payable to the workers and
other staff members. The quality and taste of a food mentioned in a menu is determined by the skills possessed through
cooks and waiters of the restaurant.

Costed and priced menus to meet a
range of customer requirements

Continue

Approaches to menu costing and
pricing
There are various approaches that are adopted by restaurants in order to decide upon its costing and pricing strategies.
Some outlets decides their pricing by portion cost which divides the cost of procurement by the portions of ingredients.

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While the method of pricing by raw food cost item considers the cost of raw food and its division with desired food cost
percentage.

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In the strategy of pricing by competition, the restaurants takes into consideration the price of fellow competitors.

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Another technique of deciding price is on the basis of demand and supply models which decides prices according to
availability in the market.

Plan for menu development, including
KPIs to measure success
 The process of menu development and its effectiveness is determined on the basis of measuring KPIs to
evaluate success. The restaurant should prepare cash flow statements and statements of cost of goods
sold.
 It should assess the viability of its menu through maintaining sales records and also keep track of
employees performance through evaluating sales made per employee per hour.
 Moreover, the managers should analyse meal preparation time along with amount of wastage and
spoilage per meal. In addition to this, the restaurant should also measure its revenue per available seat
per hour.

Conclusion
Form the respective presentation, it has been concluded that menu development is a major process in the operations of a
restaurant or food outlet. The planning of menu development is facilitated through determining various costs and other
relevant factors. In order to evaluate performance through menu planning, it is suggested for restaurants to include key
performance indicators in order to measure success.

References
 Mathews, A., Patten, E.V. and Stokes, N., 2021. Foodservice Management Educators’ Perspectives on Nutrition and Menu Planning in Student-
Operated Restaurants. Journal of Nutrition Education and Behavior, 53(3), pp.223-231.
 Pusiran, A.K. and et.al., 2021. Food Culture Integration in Menu Plan for a Sustainable Homestay Business. Journal of Environmental Management &
Tourism, 12(1), pp.258-265.
 Noone, B.M. and Cachia, G., 2020. Menu engineering re-engineered: Accounting for menu item substitutes in pricing and menu placement
decisions. International journal of hospitality management, 87, p.102504.
 Okumus, B. and et.al., 2020. Tackling food waste in all-inclusive resort hotels. International Journal of Hospitality Management, 88, p.102543.
 Renzulli, J.S., 2021. The Multiple Menu Model for Developing Differentiated Curriculum 16. In Reflections on Gifted Education (pp. 211-247). Routledge.

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