Menu Development, Planning and Design - Desklib

This presentation discusses the factors associated with costing and pricing of food and beverages items that need to be considered by owners of restaurants or hotels while designing a menu. It emphasizes the importance of conducting market research and applying accurate menu pricing strategies for maximum profitability. A case study of Restaurant Gordon Ramsay is included.

Menu Development, Planning
and Design

Table of contents
 Introduction
 Key considerations
 Accurately costed and priced menus
 Approaches to menu costing and pricing
 Conclusion
 References

INTRODUCTION
 Menu is defined as collection of Food and Beverages that restaurants or hotels offers
to their guests. Menu consist of variety of food, beverages, salads, soups, deserts and
many more items with their prices. While designing menu it becomes very essential
for hospitality industry to focus on pricing strategies so that it could attract large base
of customers. For completing this presentation, the restaurant which has been taken
into consideration is Restaurant Gordon Ramsay which is based in UK and was
founded in the year 1998 by Gordon Ramsay.

Key considerations
 For getting success in hospitality industry, it is very
essential for restaurants to focus on pricing their
menu accurately that could attract large base of
customers and provide them maximum profitability.
In terms of Restaurant Gordon Ramsay, there are
some factors associated with cost and price that need
to be considered while planning a menu.

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 Cost out menu: The first step while
developing menu pricing strategy it is
essential for restaurant to cost out their menu.
If the selected restaurant wants to achieve
maximum profitability than it must know
food cost percentage for every item in its
menu.

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 Competition
Another factor which needs to be analysed by Restaurant Gordon Ramsay
while planning menu pricing is to check out costing strategies of its
competitors who are offering same food categories. It is important that the
selected restaurant must include special dishes or discounts that could
differentiate it from its rivals and grab attention of people. The restaurant
should conduct market research by collecting menu of other restaurants
and conduct competitive pricing analysis.

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 Find Balance
One of the key factors to maximize profitability by applying accurate
menu pricing is to find balance between high-cost items and low-cost
commodities. In case of respective hotel, it could find balance by
considering some factors such as keep updating its food costs so that it
knows cost of every item in the menu. Secondly, the restaurant could
invest in point of sale scheme that can develop accurate product mix
report and lastly staying focused as well as committed towards restaurant.

Accurately costed and priced
menus
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.%
Steel-Cut
Oatmeal
12 £19.50 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Cinnamon
Quinoa
breakfast bowl
8 £20.50 £4.25 36.00% £7.70 £95.60 £34.00 £61.60 15.00%

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Vegan French
toast
10 £11.25 £3.75 31.00% £8.20 £69.5 £21.5 £48 20.00%
Vegan
Pumpkin Mac
'n' Cheese
5 £151.20 £3.50 32.00% £7.45 £54.75 £17.5 £37.25 9.00%
Vegan Gyros
with
Mushrooms
4 £45.20 £5.25 35.00% £9.70 £59.80 £21.00 £38.80 9.00%

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Roasted Broccoli
Pasta Salad with
Hemp Pesto
6 £58.36 £4.00 31.00% £8.95 £77.70 £24.00 £53.70 13.00%
Spicy Chinese
eggplant with
Szechuan
sauce
10 £65.23 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Vegan Tacos 5 £72.30 £7.25 45.00% £8.70 £79.75 36.25 £43.50 10.00%
Totals 60 £699.9 £184 £402.15

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Item Tota
l
Sold
Menu
Price
Portio
n Cost
Food
Cost
%
Portio
n C.M.
Total
Food
Sales
Total
Food
Cost
Total
C.M.
C.M.
%
Strawberry
lemonade
31 £10.02 £1.93 28.59
%
£4.82 £59.83 £209.25 £149.4
2
4.63%
Black
Cherry
Bourbon
Cola
211 £07.85 £1.72 25.48
%
£5.03 £362.92 £1,424.2
5
£1,061.
33
31.54
%

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Almond Butter &
Banana Protein
Smoothie
71 £05.36 £1.53 22.01% £5.43 £108.63 £493.45 £384.82 10.61%
Vegan Peanut
Butter Cookies
19 £15.20 £2.23 29.73% £5.27 £42.37 £142.50 £100.13 2.84%
Pistachio Oat
Squares
78 £16.52 £1.55 26.05% £4.40 £120.90 £464.10 £343.20 11.66%

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Avocado
Chocolate
Pudding Pops
129 £12.30 £1.68 26.05% £4.77 £216.72 £832.05 £615.33 19.28%
Kabocha Squash
Millet Bowls
130 £58.25 £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 £3,328.9
3
100.00
%

Approaches to menu costing and
pricing
 There are different type of restaurant menu pricing approaches that
could be used by selected organization in order to maximize
profitability. The different pricing methods are defined below
 Pricing by portion cost: A standard portion cost is defined as price of
serving single item or beverages according to standard recipe. Under
this method the owner of restaurant could determine portion of cost by
dividing the buying cost by the portion.

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 Pricing By raw food cost of items
 According to this method the restaurant could consider raw food
price of product and divide it by wanted food cost percentage in
order to get final price.

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 Pricing by competition
 As per this approach the restaurant could determine prices by its
rivals according to its reference price. The restaurant could
choose cost of it's food products as same as its competitor or
slightly lower in order to grab attention of customers.

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 Pricing by demand analysis
 This method depends upon rule of demand and supply. It states
that if a restaurant offers special or exclusive food and beverages
then it could charge more price.

CONCLUSION
 From the above discussion it has been concluded that there are some factors
Associated with costing and pricing of food end beverages items which needs to be
considered by owners of restaurants or hotels while designing menu. it is important
for restaurant to conduct market research in order to analyse what others are offering
so that it could apply methods that can provide maximum profitability. It could be said
from the above report that inaccurate costed and priced menu should be designed buy
restaurants in order to meet requirements of customers.

References
 Katayama, N., 2018. 3-Day Menu Planning for Existing Commercial Disaster Food Supplies
Using the Evaluation of Taste and The Blood Sugar Level. Recent Adv Food Sci Nutr Res
2018: 38-46. DOI: https://doi. org/10.29199/FSNR, 101015, p.3.
 Kaewunruen, S., Sresakoolchai, J. and Zhou, Z., 2020. Sustainability-based lifecycle
management for bridge infrastructure using 6D BIM. Sustainability, 12(6), p.2436.
 Madni, A.M., Madni, C.C. and Lucero, S.D., 2019. Leveraging digital twin technology in
model-based systems engineering. Systems, 7(1), p.7.

Thank-You