Factors Affecting New Product Development in Restaurants

The given assignment involves a comprehensive report on menu planning and product development processes in restaurants. It identifies key factors that influence these processes, such as market research, social preferences, economic conditions, and availability of resources. The report aims to provide insights into the complexities of new product development in restaurants.

Menu Planning and Product
Development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................4
AC 1.1 Discussing the principles and factors of recipe development.........................................4
AC 1.2 Assessing the factors that affects the menu planning process........................................5
AC 1.3 Discussing the factors that influence service methods...................................................5
AC 2.1 Stages of menu product development planning..............................................................6
AC 2.2 Evaluating the influences of different factors on development process.........................7
TASK B...........................................................................................................................................8
AC 3.1 Justifying menu design to reflect the menu compilation and recipe development ........8
AC 4.1 Findings of research into customer requirements for new food concept........................8
AC 4.2 Justifying the choice of new food concept.....................................................................8
AC 4.3 Recommendations on the launch of new food concept..................................................8
AC 4.4 Reviewing own performance in relation to developing and executing new food menu 8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Menu planning is the process of determining what needs to be included in a meal i.e.,
main dishes, side dishes and desserts. The plan is made for knowing how many meals are to be
included in a menu and when to serve. Product development is the process of creating a new
product that is unique from existing products in the market (Chen, Peng and Hung, 2015). The
present report will highlight the menu planning and product development in Prezzo, a British
restaurant based on Italian-theme. The assignment will cover the principles and factors of recipe
development, the factors that affects menu planning decisions and the factors that influence
service methods. Further, stages involved in menu planning, an evaluation of factors that affects
product development process along with some other points will be discussed in this report.
TASK A
AC 1.1 Discussing the principles and factors of recipe development
The restaurant is planning to introduce a new food concept called fusion of classical
Italian dishes with British touch for which it needs to do menu planning. This is being done in
the restaurant for the following reasons:
Ever changing preferences of customers : Customers wants something different from
what already is being sell by others in the market. They preferences changes very rapidly which
is the reason why the restaurant is thinking of bringing a new food concept in its menu.
Surviving Competition : For coping up with the intense competition in the food
industry, it is essential for Prezzo to update its menu and to create and present something
different to its customers. This would help the restaurant in attracting new customers and
maintaining the existing ones (Dangelico, 2017).
Principles of recipe development
Determination of Nutrition element in recipe : This aspect is primarily considered in
today's time while developing a recipe by the chef of Prezzo. This is because of changing
lifestyles of people, according to which the demand of products has changed over the time.
Quality and Taste : This is the another factor that has to be taken care of while creating
a dish. Proper balance of inputs used in a dish, how these inputs taste together are the factor upon
which success of a dish depends. Having tasty food does not mean that it is of superior quality. A
customer pays for the taste and quality both and therefore meals needs to be prepared with good
taste along with superior quality (Principles of recipe development, 2017).

Unsaturation : Sometimes dishes reaches to its saturation level in terms of its success
and people tends to try out dishes something different. This calls for the creativity factor of the
Prezzo to come in role and present something unique to its customers for satisfying their
requirements. Thus, it is one of the principle which is considered by chef of restaurant in
developing a recipe.
Advantages of proposed change :
 It would help the restaurant in serving something new to customers which would assist in
meeting needs of people that tends to experiment with dishes.
 Introducing new recipe will help in attracting people to restaurant's door.
 It would help in maintaining its competitive in market.
Disadvantages of Proposed change:
 Creating a new dish involve lots of experiment with raw materials regarding how they
can be mould together to form a tasty dish. This results in costs, time and excessive
manual efforts.
 Budgets of the restaurant could shiver because of the addition of new recipe.
 There is a possibility that people not might actually like the new dish (Ernst and et.al.,
2017).
AC 1.2 Assessing the factors that affects the menu planning process
There are various factors that impacts the menu planning process in the Prezzo. These are
discussed below:
Price : While deciding dishes that are to be included in a meal, price is the foremost
consideration of the restaurant. This is because if the prices of the meal are set too high, there is a
possibility that customers might not purchase the dish. And if the prices are set too low for
making its dish popular at initial stage, it may result in the losses for it. This is because serving
food with good quality at low prices is a very challenging task for anybody. Therefore, proper
pricing of the dishes are to be made while planning a meal by the seniors in Prezzo.
Quality : Customers wants the highest quality food at the most competitive prices. The
food must be of supreme quality. The chefs must include high nutritious value to their dishes
along with a good taste for making them desirable for the target customers. Also, various health
and safety regulations requires food which is served by restaurants to of set standards (Five
Planning Factors for Meals, 2018).

Service : Service is a factor that affect the menu planning because involving dishes in a
menu that requires very long preparation time may affect the decisions of buying new additions
negatively. Service time from kitchen to customer's table must be kept as short as possible.
Decor : How the dishes will be delivered to customers such as how it will be plated,
decor of the dishes, etc., is considered while planning a menu. This is necessary because highly
decorated dishes provides additional value to customers in experiencing the products of
restaurant.
AC 1.3 Discussing the factors that influence service methods
Factors affecting service methods are :
Menu: Meals included in the menu greatly impacts the service method in Prezzo. For
example, it food items are light, reception service could be used and if the dishes are heavy and
involves knives and fork, hand service method is required.
Availability of staff: If there is lack of adequate staff, the decision of employing hand
service method is impacted as it requires one server on a particular number of customers on each
table.
Proper infrastructure for exhibition cooking : Since the food is cooked in front of
people, it requires separate area for conducting such activities.
Budget : Availably of financial resources affects the senior management of Prezzo to
employ the type of service method in its premises (Fuller, 2016).
Different service methods are mentioned below:
Reception/ Buffet method : The food items can be served through displaying items on a
table. Customers serves themselves under this service way.
The advantage of this method is that wastage of food is avoided as people takes only the
quantity that could be eaten by them. The drawback is that food that involve knives and which
are difficult to eat while standing can not be served by this method (Hanks, Line and Kim,
2017).
Action Stations : Under this method, the food is prepared on the spot by chefs in front of
people and is served like a buffet system. It is often called as exhibition cooking.
The benefit of the above mentioned method is that transparency is provided to customers
regarding how the dishes are prepared and what level of hygiene factor is used while preparing

them. The disadvantage is that people might get demotivated by standing in long que for eating
the food items.
Hand Service : In this method, a server attends particular number of guests like one for
every table. Customer are seated and they are served what they have ordered.
Advantage of this method is that customers gets quick service by not waiting for the
servers to attend them. The pitfall of this method that more servers are to be employed for
attending each table that increases the cost of operations for restaurant.
AC 2.1 Stages of menu product development planning
The stages involved are:
Idea generation : The idea is perceived on the basis of market demand, popular trends,
customers preferences, activities of the rival restaurants etc. For example, Prezzo perceived an
idea of adding fusion dishes belong to Italian and British cultures. This is done because of
consumer trends and for standing out from the crow in market (Gordon and Brezinski, 2016).
A complete market research is done for determining the target audience. It decided that
it would serve to average income group of market and especially to families, old people who
prefers to have old classic dishes with a twist.
Brainstorming of new menu : Meals that are supposed to be included in menu are
evaluated on various factors such as time taken for preparing meals, profitability of dishes, cost
of operations, service methods required different dishes etc.
Resources : The resources are arranged in a systematic for supporting the development
of new product in the form of man, funds, material and machineries.
Feasibility Studies : Feasibility is checked in terms of its probability like how much a
dish can earn in relation to the expenses incurred for developing it. For example, cash budgets
would be prepared for estimating cash inflow and cash outflow from the restaurant.
New product development : The product is then is created by executive chef that is
further moves into screening stage.
Testing of new menu : The fusion dishes would be tasted by the staff of restaurant for
taking feedbacks regarding the dishes.
Marketing & Selling : After the proposal is accepted and product is developed, its
marketing is done for making aware people about the new additions in their menu. Lastly,
serving the new menu to the target group.

AC 2.2 Evaluating the influences of different factors on development process
There are various factors that affects the development process of new dishes in Prezzo :
Social factors : Ethnicity, preference of population regarding the classic dishes of
different culture, trends of people in experimenting with their eating habits, age, frqeuency of
people of dinning in restaurants etc., are some factors that affects the development process of
new food concept proposed by Prezzo.
Economic factors : Purchasing power of people, inflation rate in country is one of the
economic factor that would affect the product development of Prezzo. Inflation rate make the
prices of goods high which eventually makes the prices products of restaurant high. This
discourages people in eating out in restaurants (Horacek and et.al., 2018).
Availability of adequate resources : New product such as upscale dishes could be
developed only when the Prezzo have the adequate resources in terms of staff, chefs who can
create the dishes with consistencies, funds for carrying out the daily operations like acquiring
raw materials, kitchen equipments, cost of conducting market research etc. The other aspect is if
does not have enough resources, in that situation can it arrange those resources for such
development. These factors affect the process of creating a new menu for the proposed concept.
Media influences the development process in the sense that marketing aspect of product
development process can be effectively done by using media. Digital media and especially online
marketing is becoming extremely popular for spreading the awareness about the new dishes,
Prezzo is offering to its target group. Also, these methods helps the restaurant in reaching masses
(Lee, Hallak and Sardeshmukh, 2016).
Staff is very crucial factor in developing something new. Executive chef is responsible
for how new and innovative dishes could be prepared and how it could be made more
presentable and highly attractive. Proper staff that bring food from kitchen to customers table is
required for serving the people.
Importance of skilled workforce: People in the kitchen are required to be skilled for
preparing the proposed dishes in the new menu and experienced and skilled management team
for keeping things coordinated in the premises. This ensures smooth and seamless flow of
activities within the restaurant, leading to consistent services to customers.

TASK B
AC 3.1 Justifying menu design to reflect the menu compilation and recipe development
AC 4.1 Findings of research into customer requirements for new food concept
AC 4.2 Justifying the choice of new food concept
AC 4.3 Recommendations on the launch of new food concept
AC 4.4 Reviewing own performance in relation to developing and executing new food menu
(All covered in PPT)
CONCLUSION
From the above project report, it can be summarised that menu planning involves
comprehensive procedure of deciding what meals needs to be added at what price. Product
development involves various stages such as market research is the foundation of forming an
idea of creating an innovative food product that is capable of meeting the demands and
requirements of customers.
Further, the report concluded that different factors that affects the development process of
the new cuisines such as social factors in which preferences of people, lifestyle of individuals
crucially impact the decision making process of Prezzo. Economic factors such as purchasing
power and inflation rates affect the development process because the prices of the raw materials
rises sharply in inflation in which the prices of restaurant's products goes up. Other factors such
as availability of resources such as trained chefs and other staff, funds for creating new products,
materials and machineries etc. influences the decisions regarding development process.

REFERENCES
Books and Journals
Chen, A., Peng, N. and Hung, K.P., 2015. The effects of luxury restaurant environments on
diners’ emotions and loyalty: incorporating diner expectations into an extended
Mehrabian-Russell model. International Journal of Contemporary Hospitality
Management. 27(2). pp.236-260.
Dangelico, R. M., 2017. What drives green product development and how do different
antecedents affect market performance? A survey of Italian companies with eco‐
labels. Business Strategy and the Environment. 26(8). pp.1144-1161.
Ernst, H and et.al., 2017. Virtual Co-Creation with Customers in the Early Stages of New
Product Development. Available at SSRN 3053800.
Fuller, G. W., 2016. New food product development: from concept to marketplace. CRC Press.
Gordon, R. T. and Brezinski, M. H., 2016. The complete restaurant management guide.
Routledge.
Hanks, L., Line, N. and Kim, W. G. W., 2017. The impact of the social servicescape, density,
and restaurant type on perceptions of interpersonal service quality. International Journal of
Hospitality Management. 61. pp.35-44.
Horacek, T. M and et.al., 2018. Development and validation of the Full Restaurant Evaluation
Supporting a Healthy (FRESH) Dining Environment Audit. Journal of Hunger &
Environmental Nutrition. pp.1-20.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Innovation, entrepreneurship, and restaurant
performance: A higher-order structural model. Tourism Management. 53. pp.215-228.
Online
Five Planning Factors for Meals. 2018. [Online]. Available through
<https://healthyeating.sfgate.com/five-planning-factors-meals-8984.html>
Principles of recipe development. 2017. [Online]. Available through
<https://tourismandhospitality.wordpress.com/2017/08/26/principles-of-recipe-
development/>