Menu Development, Planning and Design

This presentation discusses the key considerations for menu costing and pricing, approaches to menu costing and pricing, and plan for menu development using KPIs to measure success. It also highlights the importance of menu designing in the hospitality industry and how it reflects the organisational brand and vision. The presentation concludes with the significance of taking feedback from customers to make changes in food items, ingredients used and pricing strategy.

MENU DEVELOPMENT, PLANNING
AND DESIGN

TABLE OF CONTENTS
 INTRODUCTION
 MAIN BODY
 TASK 2
 Determine the key considerations which need to be taken into account when costing and pricing menus
 Producing costed and priced menus to meet a range of customer requirements
 Approaches to menu costing and pricing
 Plan for menu development using KPIs to measure success
 CONCLUSION
 REFERENCES

INTRODUCTION
 Menu designing is the essential practice which the hotel organisation lay
out, it plays an important role as efficient menu reflects the organisational
brand, vision.
 Menu in any hospitality industry is the primary aspect for communication it
also enables the organisation to control the business.
 It gives the proper roadmap as what ingredients and dishes need to be
include, it also helps in setting the prices which the customer pays against
the purchased service.

TASK 2
DETERMINE THE KEY CONSIDERATIONS WHICH NEED TO BE
TAKEN INTO ACCOUNT WHEN COSTING AND PRICING MENUS
 Pricing strategy plays a vital role while
developing and designing menu.
 It is the main thing that is being considered
by customers while selecting restaurants.
 It is important for manager to price menu in
an effective manner.

CONTINUE…
Direct cost: It refers the cost that is directly associated
with the food item in the menu itself such as:
purchasing of food, drip loss, portion size and food waste
from spilling or spoiling.

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 Indirect cost: This cost does not include
the actual ingredient that go with each
item but this cost might also affect when
dishes are prepared.

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 Competition: It is other main factor that needs to be considered while
menu planning. Manager needs to consider prices of their competitors
for the same item.
 Service cost: The type of service that restaurant is going to offer can
also affect menu pricing. For find dinning, restaurants need to pay high.

CONTINUE…
 Boundary pricing: It refers the cost
that manager pays for its location, for
quality of food.
 Along with this, location of restaurant,
ambiance, and other environmental
factors also affect menu planning.

PRODUCING COSTED AND PRICED MENUS TO MEET A
RANGE OF CUSTOMER REQUIREMENTS
Approaches to menu costing and pricing
 There are 4 approaches of menu pricing by which restaurants can plan
their menu and decide pricing such as:
 Pricing by portion cost: A standard portion cost is the cost of serving
one item as per the standard recipe.

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Pricing by raw food cost: As per the raw
price of each item, pricing is being decided.
For attracting customers, manager prices
slightly low and it makes them beneficial
(Victor and et.al., 2018).

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 Pricing by competition: When
prices of food item are being
decided as per the price of
competitors then it is called
pricing by competitors.

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 Pricing by demand
analysis: When pricing is
being done on the basis of
demand and supply then it is
considered as pricing by
demand analysis.

PLAN FOR MENU DEVELOPMENT USING
PIS TO MEASURE SUCCESS
 Some steps that need to be followed include: cater tomarket, out
serve the competition, brainstorm with consultant, reach out for
recipes, striking a balance with variety, stay seasonably flexible,
sticking with quality sourcing, matching pricing and finalising
details with staff.

CONTINUE…
 Sales indicator: By measuring
and comparing sales with
expected sales price, manager can
measure success of menu planning
and pricing.

CONTINUE…
 Feedback: By taking feedback from customers, they can know about
all those dishes that give them value and those food items in which
they need to make improvements. On the basis of reviews and
customers’ feedbacks, they can make changes in food items,
ingredients used and pricing strategy as well.

CONCLUSION
 From the above report it is concluded that designing of the menu
involves the skills and knowledge that helps in accomplishing the
desired goals and objectives of the food organisation.

REFERENCES
 Allegretto, S. and Reich, M., 2018. Are local minimum wages
absorbed by price increases? Estimates from internet-based
restaurant menus. ILR Review. 71(1). pp.35-63.
 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.