Menu Development, Planning and Design

This presentation covers the systematic process of menu planning, including the key elements of menu pricing and costing. It also provides insights into producing accurately costed and priced menus to meet a range of customer requirements. The presentation analyzes various approaches to menu costing and pricing to maximize profits. References are included for further reading.

MENU DEVELOPMENT,
PLANNING AND DESIGN

TABLE OF CONTENT
• Introduction
• The key elements while pricing and costing of menus
• Produce accurately costed and priced menus to meet range of customer
• Analysis of approaches to menu costing and pricing
• Conclusion

INTRODUCTION
Menu exhibits the list of food, salad, appetizers,
beverages, deserts etc. including there prices,
ingredients used and sometimes pictures of dish,
either physical in print form or on electronic
devices. Menu planning is the systematic process
to where the types of food, drinks, their prices,
colour, target market and other factors are
considered to design the exclusive menu for the
obtaining the aims of restaurant.

THE KEY ELEMENTS WHILE PRICING AND
COSTING OF MENUS
• There are two ways by which the
pricing and costing of the menus can
be determined that are food cost and
gross profit margin method. Both the
methods of determining the price of
certain menu involves backward or
declining approach to identify the
expenses that influences the price of
certain product.

CONTINUE…
• Identification of expected food cost
ratio: This could be done by
Restaurant Sat Bains by identifying
their profits let say 20% and pricing
it on the menu to understand that
expenses are accepted by guests or
not.

CONTINUE
• Determining the cost of sold items: Restaurant Sat
Bains could utilise bar inventory software like
BinWise Pro to figure out their expenses on raw
material and what they gain from each sale.

CONTINUE
• Calculate how to price food items: The
price for a particular item in menu could
be obtained by dividing cost of goods
sold by ideal food cost. This is one way
of deciding price for a particular item by
food cost and many other ways can be
adopted.

PRODUCE ACCURATELY COSTED AND PRICED MENUS
TO MEET A RANGE OF CUSTOMER REQUIREMENTS
A B C D E F G H I J
Menu Item Total
Sold
Menu Price Portion Cost Food Cost
%
Portion
C.M.[1]
Total Food
Sales
Total Food
Cost
Total C.M. C.M.%
Wild garlic soup, bacon
and olive oil
12 £10.95 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Bubble and squeak,
asparagus
8 £11.95 £4.25 36.00% £7.70 £95.60 £34.00 £61.60 15.00%
Strawberry Pavlova 10 £6.95 £3.75 31.00% £8.20 £69.5 £21.5 £48 20.00%
Yule log 5 £10.95 £3.50 32.00% £7.45 £54.75 £17.5 £37.25 9.00%
Cranberry, apricot and
sage stuffing
4 £14.95 £5.25 35.00% £9.70 £59.80 £21.00 £38.80 9.00%
Festive Black pudding in
blankets
6 £12.95 £4.00 31.00% £8.95 £77.70 £24.00 £53.70 13.00%
Scotch eggs and brown
sauce
5 £15.95 £7.25 45.00% £8.70 £79.75 36.25 £43.50 10.00%
Totals 50 £568.5 £151 £337.75

CONTINUE
Item Total
Sold
Menu Price Portion Cost Food Cost
%
Portion C.M. Total Food Sales Total Food Cost Total C.M. C.M.%
Pimm's 31 £6.75 £1.93 28.59% £4.82 £59.83 £209.25 £149.42 4.63%
Mandarin Mojito 211 £6.75 £1.72 25.48% £5.03 £362.92 £1,424.25 £1,061.33 31.54%
Champagne and sparkling 71 £6.95 £1.53 22.01% £5.43 £108.63 £493.45 £384.82 10.61%
Sweet Wine 19 £7.50 £2.23 29.73% £5.27 £42.37 £142.50 £100.13 2.84%
Rose Wine 78 £5.95 £1.55 26.05% £4.40 £120.90 £464.10 £343.20 11.66%
Cote De Nuits 129 £6.45 £1.68 26.05% £4.77 £216.72 £832.05 £615.33 19.28%
Alsace 130 £6.95 £1.76 25.32% £5.19 £228.80 £903.50 £674.70 19.43%
Total 669 ACM = £4.98 £1,140.70 £4,469.10 £3,328.93 100.00%

MENU SAMPLE

MENU SAMPLE

ANALYSE APPROACHES TO MENU COSTING
AND PRICING
• There are many strategies and approaches
that can be helpful in costing and pricing of
menus to maximise profits. Some of the
approaches involve internal factors such as
gross profit margin or food cost as
explained above. Whereas, the external
factors involve competition and clientele
that could be used for pricing of the menu,
these factors are as follows-

CONTINUE
• Competitor's pricing: Restaurant Sat Bains could look
after the prices of the products that competitors use with
similar menus and concepts. While looking after the costs
of the competitors’ perfect price for a menu can be
calculated.
• Demand Pricing: The another approach of pricing may
be creating demand for certain product or menu to
encourage higher sales. This strategy or approach could
be used by Restaurant Sat Bains to gain profits with the
economy of scale to increase margins.

CONTINUE
• Psychological pricing: There's a story of Robert Cildini's
influential market book influence that illustrates an aspect
of psychological well. Which stated that sometimes higher
prices may communicate higher quality, and vice versa.
Restaurant Sat Bains could use this approach to attract
customers of higher grades and gain more profits.
• Menu Engineering: Making the menu attractive and well
defined could help the customers to choose the products
more easily and they are more likely to spend.

CONTINUE
• Price and seasonality of ingredients: The prising of
certain food items by Restaurant Sat Bains is done
according to the changes in seasons.
• Labour costs: The wages of employees affects the costs of
the menu produced because they are the producers for
menu who may work extra to complete the requirements
in the menu this affects the cost of menu.

CONCLUSION
• From the above framework it had been concluded that a menu is the driver of restaurants and
food service institutions for which menu planning is essential process to be conducted effectively
by considering different types of menu and there principles. Menu should meet the customer
requirements to for guest satisfaction and to achieve the goals and profits of the business
requirements.

REFERENCES
• Cho, M., and et. al., 2019. Restaurant purchasing skills and the impacts upon strategic
purchasing and performance: The roles of supplier integration. International Journal of
Hospitality Management, 78, pp.293-303.
• Irie, K. and et.al., 2020, August. A Study on Menu Planning Method for Managed Meal-
Consideration of the Cost of Ordering Ingredients. In IFIP International Conference on Advances
in Production Management Systems (pp. 679-685). Springer, Cham.
• Milano, C., Novelli, M. and Cheer, J.M., 2022. Over-tourism. Edward Elgar Publishing.
• Pappalardo, V. and La Rosa, D., 2020. Policies for sustainable drainage systems in urban
contexts within performance-based planning approaches. Sustainable Cities and Society, 52.
p.101830.

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