Menu Development, Planning and Design by Gordon Ramsay

This presentation by Gordon Ramsay covers the key considerations for pricing and costing menus, provides a menu list with costing, pricing, and recipe cards, and includes profitability analysis and costing produces to accurately price dishes. It also recommends strategies for modifying the menu and adopting value pricing and penetrating pricing strategies to remain competitive in the market.

MENU DEVELOPMENT, PLANNING
AND DESIGN
GORDON RAMSAY

TABLE OF CONTENT
 Introduction
 Key consideration for pricing and
costing menu
 Menu list of Gordon Ramsay
(Budgeted)
 Recipe card
 High revenue generating dishes
 Energy cost of Gordon Ramsay
 Staff cost of Gordon Ramsay
 Profitability analysis
 Estimated income
statement of Gordon
Ramsay
 Cost to profit margin
ratios
 Costing produces to
accurately price dishes
 Approach to menu costing
and pricing
 Recommendation
 Conclusion
 References

INTRODUCTION
 The present presentation is based on Gordon
Ramsay restaurant of UK.
 The presentation will state the key factor that
need to be consider by the owner in order cost
and price menus.
 The presentation will also produce the menu
list along with their costing, pricing and recipe
card.

KEY CONSIDERATIONS FOR COSTING AND PRICING
MENUS
The key consideration taken into account
by Gordon Ramsay when costing and
pricing menus:
 Cost and revenue from various sources
 Equipment facility
 Current economic climate
 Seasonality restriction

MENU LIST OF GORDON RAMSAY
HOTEL (BUDGETED)
MENU ITEMS Menu Price
Portion
Cost
Food Cost
%
Portion
Contributio
n Margin
Total Food
Sold Net Income
Total Food
Cost Popularity
Pee and ham soup 3.2 0.8 25.00% 2.4 4 12.8 3.7 2.63%
Yorkshire Pudding 5 1 20.00% 4 5 25 5 3.29%
British Musy peas 8 3.2 40.00% 4.8 8 64 25.6 5.26%
Cornish pasties 6 4 66.67% 2 6 36 24 3.95%
Bangers and Mash 4 1.2 30.00% 2.8 12 48 14.4 7.89%
Chicken supreme 20.71 5.8 28.01% 14.91 2 41.42 11.62 1.32%
Curry and paprika
deviled eggs 21 5 23.81% 16 8 168 40 5.26%
Steak and kidney pie 18 6 33.33% 12 11 198 66 7.24%
Chicken tikka masala 14 8 57.14% 6 15 210 120 9.87%
Classic Cottage pie 11 7 63.64% 4 17 187 119 11.18%
Chocolate foundation 20 13 65.00% 7 12 240 156 7.89%
Carrort cake 18 9 50.00% 9 14 252 126 9.21%

CON…
Clotted creame 21 11 52.38% 10 18 378 198 11.84%
Cherries jubilee 16 10.5 65.63% 5.5 20 320 210 13.16%
Custard tart 15 8 53.33% 7 12 180 96 7.89%
Cocktail 9 5 55.56% 4 19 171 95 12.50%
Infusion 8 6 75.00% 2 13 104 78 8.55%
Ginger Beer 11 4 36.36% 7 14 154 56 9.21%
Wine 15 7 46.67% 8 25 375 175 16.45%
Hot chocolate 6 2.5 41.67% 3.5 10 60 25 6.58%

RECIPE CARD
Pee and Ham soup:
Name of Dish Pee and ham soup Preparation Time 15 minutes
Total Cost 3.07 Cooking time 5 minutes
Portion Cost 0.8 Portion Size 100 g
Sales Price 3.20 Portion Nos 4
Items Weight per kg/l/ units Cost per Kg/l/ units ($) Actual cost
split peas 0.100 1.3 0.13
ham hock 0.150 1.5 0.225
ham bone 0.100 2.1 0.21
black pepper 0.50 1.3 0.65
garlic cloves 0.100 1.9 0.19
olive oil 0.40 2.5 1
bay leaves 0.10 3.6 0.36
onion 0.30 1 0.3
Total cost 3.07
Portion Cost 0.8

CON..
Chicken supreme:
Name of Dish Chicken Supreme Preparation Time 30 minutes
Total Cost 11.62 Cooking time 10 minutes
Portion Cost 5.8 Portion Size 500 g
Sales Price 20.71 Portion Nos 2
Items Weight per kg/l/ units Cost per Kg/l/ units ($) Actual cost
skinless, boneless chicken breast half 0.100 12 1.2
onion, chopped 0.150 2.1 0.315
butter, melted 0.100 18 1.8
water 0.500 12 6
dry bread stuffing mix 0.100 8 0.8
condensed cream of chicken soup 0.40 2.5 1
shredded Cheddar cheese 0.100 5 0.5
Total cost 11.62
Portion Cost 5.8

HIGH REVENUE GENERATING DISHES
Maximum sold Items
Items Revenues
Wine 375
Cocktail 171
Clotted creame 240
Classic Cottage pie 187
Cherries jubilee 320
Total 1293
Percent of total revenue 59% approx..

ENERGY COST OF GORDON RAMSAY
Energy Cost
Heating 78.32
Lighting 55.94
Water 22.38
Insulation 44.75
Others 45.56
Total 223.76

STAFF COST OF MOOR GORDON
RAMSAY
Labor Cost
Chefs/ Receptionist 181.81
Waiters 55.94
Workers 41.96
Total 279.70

PROFITABILITY ANALYSIS
Food Cost percentage Total Food Cost / Total Sales 51.32%
Total Contribution Margin Total Sales - Total Food Cost 1061.42
Average Contribution Margin/Customer Contribution margin / Quantity Sold 6.98
Contribution margin/ menu item Total Sales-Total Food Cost/Quantity Sold 6.98

ESTIMATED INCOME STATEMENT OF GORDON
RAMSAY
Income Statement Amount
Revenues 2180.22
Materials 615.34
Labor cost 279.7
Energy Cost 223.76
Total 1118.8
Gross profit 1061.42
Fixed Cost 500
Marketing 150
Profit 411.42

COST TO PROFIT MARGIN RATIOS
Particulars Formula Result
Gross profit margin Gross profit/ sales revenue *
100
1061.42/ 2180.22 * 100 = 51%
Operating profit margin Operating profit / sales revenue
* 100
411.42/ 2180.22 * 100 = 19%
Net profit margin Net profit / sales revenue * 100 411.42/ 2180.22 * 100 = 19%

COSTING PRODUCES TO ACCURATELY PRICE
DISHES
Break Even Point
BEP = Fixed Cost / Contribution Margin
1027.03

APPROACHES TO MENU COSTING AND
PRICING
Various approaches to menu costing and pricing are:
 Competitive pricing method
 Raw food cost of items
 Demand driven pricing method
 Ideal food and cost method
Effective method for Gordon Ramsay
 Gordon Ramsay restaurant can choose the
competitive pricing method which will help the
company to analyse the prices that their competitors
are offering and set the prices accordingly

RECOMMENDATION
 On the basis of analysis performed within this presentation, there are certain
recommendations that must be made to the F&B manager of Gordon Ramsay regarding
adoption of strategies and changing their way of serving customers, such as the following:
 In order to attract or increase their customer base, Gordon Ramsay need to modify or
enlarge their menu size by including foods of different tastes such as Italian, Chinese &
Indian to remain competitive in the market.
 Value pricing and penetrating pricing strategies are generally followed by the competitors
in the market and accordingly, it is recommended to Gordon Ramsay to adopt similar
strategies to ensure recovery of their costs and deriving at least minimum profits.

CONCLUSION
 Within this presentation, certain key considerations needed to be made while pricing and costing
menu has been evaluated.
 Further, costed & priced menu has been developed for Gordon Ramsay through which they can
meet both their own and customer’s requirements.

REFERENCES
 Fan, T., Xu, C. and Tao, F., 2020. Dynamic pricing and replenishment policy for fresh produce. Computers & Industrial
Engineering.139. p.106127.
 McNeil, P. and Young, C.A., 2019. Customer satisfaction in gourmet food trucks: Exploring attributes and their relationship
with customer satisfaction. Journal of Foodservice Business Research.22(4). pp.326-350.
 Benetton, and et.al, 2021. Capital requirements and mortgage pricing: Evidence from basel ii. Journal of Financial
Intermediation.48. p.100883.
 Weriza, J. and et.al., 2021. RESTAURANT MENU DESIGN MUARO NEW SAND JAMAK. Dinasti International Journal of
Digital Business Management. 2(6). pp.1095-1101.
 Kim, Y. H., Sauerwald, P. and Sukpatch, K., 2021. Are you looking for special menu? An examination of variety seeking
behavior for Promotional Menu (VaPM) Model. International Journal of Gastronomy and Food Science. 23. p.100295.
 Bereitschaft, B. and Scheller, D., 2020. How might the COVID-19 pandemic affect 21st century urban design, planning, and
development?. Urban Science. 4(4). p.56.