Menu Development, Planning and Design - Key Considerations, Costing and Pricing, KPIs

This presentation covers the key considerations for costing and pricing menus, steps for making a menu, approaches to menu costing and pricing, and KPIs for menu development. It also includes information on energy utilization for sustainable food production, staffing cost, and cost to profit margin ratio. The subject covered is Menu Development, Planning and Design.

MENU DEVELOPMENT,
PLANNING AND DESIGN

TABLE OF CONTENT
 INTRODUCTION
 KEY CONSIDERATION TO TAKE INTO ACCOUNT FOR COSTING & PRICING MENUS
 STEPS OF MAKING MENU
 PRODUCING COST & PRICE MENU TO MEET CUSTOMER REQUIREMENTS
 SALES MIX
 UTILIZATION OF ENERGY FOR SUSTAINABLE FOOD PRODUCTION
 STAFFING COST
 COST TO PROFIT MARGIN RATIO
 COSTING EVALUATION
 APPROACHES TO MENU COSTING & PRICING TO MAXIMIZE PROFITABILITY
 PRESENTING IN DEPTH PLAN FOR MENU DEVELOPMENT BY FOCUSING ON KPI
 CONCLUSION
 REFERENCES

INTRODUCTION
 Menu planning is considered with the process of deciding by the company for ensuring that which dishes will be offered to the
customers.
 In the current era, there are number of innovative practices are taken by companies for ensuring that effective offering to gain
competitiveness cam become possible.
 The present study is based on Core by Clare Smyth restaurant which is one of the successful organization due to its number of
competitive advantages.
 study will pay attention on determining key considerations for costing & pricing menus.
 It will focus on having accurate estimation of cost and price menu. It will analyse approaches to menu costing & pricing for
maximizing profitability.
 This will involve in-depth plan for menu development along with recommendations to attain objectives.

KEY CONSIDERATION TO TAKE INTO
ACCOUNT FOR COSTING & PRICING MENUS
 There are several factors which influences the performance of organization so in order to be successful company need to pay
attention on having relevant information about the key consideration so that depth understanding h to meet customer
requirements.
 There are several aspects which includes impact of cost & revenue from the distinct sources.
 It can be done by company via paying attention on its cost to profit ratio of menu in turn better approach to deal with structure of
expenditure can become possible.
 The other components which has impact on costing includes current economic climate, availability of equipment, influence of
seasonality restrictions, etc.

CONTINUED
 In order to meet the customer needs the specified organization is required to pay attention on prevailing
trends, price quality, choice and convenience.
 The prevailing trends in industry play important role in influencing the efficiency of generating revenue
(Karjalainen Ilgın and Tulonen, 2021).
 Quality of product as well contribute in deciding the level of cost incurred so that price can be estimated.
 In addition to this, there are few business requirements which involves product quality & consistency,
recent laws & legislation, health & safety measures, level of marketing & profitability etc. the current
economic climate prevailing in the market areas where firm is operating.
 Laws and legislation for access of resources & seasonality restrictions have influence in determining
cots.

STEPS OF MAKING MENU
 Writing all menu items
 Determining cost of items
 Setting menu prices
 Deciding color & theme of menu
 Visualizing menu

PRODUCING COST & PRICE MENU TO MEET
CUSTOMER REQUIREMENTS
MENU ITEM Menu Price
Plate
Cost % Contribution Margin Quantity Sold Net Income Total Cost Popularity
Green market salad 15 8.45 56.33% 6.55 10 150 84.5 2.17%
English pea soup 20 6.85 34.25% 13.15 15 300 102.75 3.25%
Tuna tartar 20 12.09 60.45% 7.91 42 840 507.78 9.11%
salmon 30 9.05 30.17% 20.95 34 1020 307.7 7.38%
Lobster riotto 26 5.67 21.81% 20.33 10 260 56.7 2.17%
Rohan duck 36 12.46 34.61% 23.54 8 288 99.68 1.74%
roasted checken 30 15.89 52.97% 14.11 12 360 190.68 2.60%
beef stripliom 35 17.45 49.86% 17.55 18 630 314.1 3.90%
COD 30 12.65 42.17% 17.35 19 570 240.35 4.12%
Isle of mull scallop 35 17.95 51.29% 17.05 10 350 179.5 2.17%
charlotte potato 32 12.95 40.47% 19.05 22 704 284.9 4.77%
skate 30 13.59 45.30% 16.41 23 690 312.57 4.99%
lamb braised carrot 26 9.05 34.81% 16.95 22 572 199.1 4.77%
steamed colchester crab 20 13.25 66.25% 6.75 15 300 198.75 3.25%
girolle & toasted buckwheat tart 26 15.39 59.19% 10.61 10 260 153.9 2.17%
cornish sea bass 34 12.81 37.68% 21.19 40 1360 512.4 8.68%
cheese and onion 15 8.45 56.33% 6.55 22 330 185.9 4.77%
cherry bakewll 35 17.32 49.49% 17.68 55 1925 952.6 11.93%
core teser 45 20.12 44.71% 24.88 40 1800 804.8 8.68%
core apple 35 17.89 51.11% 17.11 22 770 393.58 4.77%
Test driving core 38 19.5 51.32% 18.5 12 456 234 2.60%
Subtotal main dishes 613 279 970.55% 15.91 461 13935 6316

CONTINUED
Name of Dish cherry Bakewell Preparation Time 10 minutes
Total Cost 7.2 Cooking time 20 minutes
Portion Cost 1.8 Portion Size 250 g
Sales Price 7.20 Portion Nos 4
Items Weight per kg/l/ units Cost per Kg/l/ units ($) Actual cost
golden caster sugar 0.120 1.2 0.144
eggs 0.100 2.1 0.21
ground almonds 0.110 2.8 0.308
carrots, chopped 0.50 1.3 0.65
glace cherries 0.150 15 2.25
butter 0.12 2.5 0.3
cherry jam 0.90 3.6 3.24
plain flour 0.1 1 0.1
Total cost 7.20
Portion Cost 1.8
Recipe card :

CONTINUED
Name of Dish charlotte potato Preparation Time 10 minutes
Total Cost 7.3 Cooking time 15 minutes
Portion Cost 0.9 Portion Size 250 g
Sales Price 3.60 Portion Nos 8
Items Weight per kg/l/ units Cost per Kg/l/ units ($) Actual cost
olive oil 0.100 1.2 0.12
garlic cloves 0.050 2.1 0.105
springs thyme 0.110 2.8 0.308
potatoes 0.50 1.3 0.65
0.150 15 2.25
Total cost 3.43
Portion Cost 0.4

SALES MIX
MENU ITEM
Menu Price Plate Cost profitability
Sles mix(profit/ slaes price
*!00)
Green market salad 15 8.45 6.55 44%
English pea soup 20 6.85 13.15 66%
Tuna tartar 20 12.09 7.91 40%
salmon 30 9.05 20.95 70%
Lobster riotto 26 5.67 20.33 78%
Rohan duck 36 12.46 23.54 65%
roasted chicken 30 15.89 14.11 47%
beef striploin 35 17.45 17.55 50%
COD 30 12.65 17.35 58%
Isle of mull scallop 35 17.95 17.05 49%
charlotte potato 32 12.95 19.05 60%
skate 30 13.59 16.41 55%
lamb braised carrot 26 9.05 16.95 65%
steamed colchester crab 20 13.25 6.75 34%
girolle & toasted
buckwheat tart 26 15.39 10.61 41%
cornish sea bass 34 12.81 21.19 62%
cheese and onion 15 8.45 6.55 44%
cherry Bakewell 35 17.32 17.68 51%
core teaser 45 20.12 24.88 55%
core apple 35 17.89 17.11 49%
Test driving core 38 19.5 18.5 49%

UTILIZATION OF ENERGY FOR
SUSTAINABLE FOOD PRODUCTION
Energy expenditure
Heating 69.3
Lighting 49.5
Water 19.8
Insulation 39.6
Others 19.8
Total 198

STAFFING COST
 Staffing cost
Labor Cost Amount
Chefs 301.6
Waiters 92.8
Workers 69.6
Total 464

COST TO PROFIT MARGIN RATIO
Cost to Profit Margin
Ratio
Sales – COGS /
Sales
14645 – 1655
/14645
88.70%
Break Even Point
BEP =
Fixed Cost /
Contribution Margin
1127.41

COSTING EVALUATION
Ratios Formula
Result
s
Food Cost percentage Total Food Cost / Total Sales
46.24
%
Total Contribution Margin Total Sales - Total Food Cost
7873.2
6
Average Contribution
Margin/Customer
Contribution margin / Quantity
Sold 15.23
Contribution margin/ menu
item
Total Sales-Total Food
Cost/Quantity Sold 15.23
Costing evaluation

APPROACHES TO MENU COSTING &
PRICING TO MAXIMIZE PROFITABILITY
 There is different approach to menu & pricing which aids in maximizing the profitability of
the organization.
 There are different types of tools that can help in meeting the costing and pricing to
maximize the profitability.
 Different types of menu a la carte, table d'hôte, set menu, functions and special occasions
which aids in presenting the dishes to meet customer demands.

CONTINUED
 For costing & pricing by portion cost, competition, demand analysis, raw cost food cost of items,
traditional pricing method, etc. can be used to determine actual expenditure to predict price for having
higher profitability.
 Meeting all appropriate sources, quality standards, offering customer service, etc.

PRESENTING IN DEPTH PLAN FOR
MENU DEVELOPMENT BY FOCUSING
ON KPI
 There are different kinds of key performance indicator which can be taken into
consideration for evaluating the organizational efficiency to meet the objectives (Tjiaman,
2021).
 These are basically for monitoring, measuring, adjusting and solving problem, and
analysing pattern.
 This includes customer service, quality performance, revenue, gross profit, etc. on the
basis of conducted evaluation it can be specified that frim need to concentrate on making
improvement in few areas .
 This involves higher accurate market evaluation to set prices, declining cost like labour,
material, having appropriate marketing practices, etc. which can help in achieving
organizational objectives more effectively.
 On the basis of test & evaluation it is interpreted that firm has good ability to meet market
forces.

CONCLUSION
 From the above study it can be concluded that menu planning is important part for achieving success.
 Current study has involved menu formulation, cost statement, cots to profit ration, etc. crucial
information.
 There are different key consideration for costing & pricing, KPIs that are executed to evaluate
performance and recommended to apply action like marketing practice, etc.

REFERENCES
Books and Journals
 Karjalainen, M., Ilgın, H.E. and Tulonen, L., 2021. Main design considerations and prospects of contemporary tall
timber apartment buildings: Views of key professionals from Finland. Sustainability. 13(12). p.6593.
 Kyriakopoulos, G.L., 2021. Environmental legislation in european and international contexts: legal practices and
social planning toward the circular economy. Laws. 10(1). p.3.
 Shamsi, M.H. and et.al., 2021. Feature assessment frameworks to evaluate reduced-order grey-box building
energy models. Applied Energy. 298. p.117174.
 Tjiaman, H.M., 2021. The influence of service training towards employee productivity at Fountain Cafe and
Restaurant Sun Plaza Medan (Doctoral dissertation, Universitas Pelita Harapan).