Menu Development, Planning and Design

This presentation discusses the key considerations in menu development, including the impact of costs and revenue, business environmental policies, and the impact of seasonality restrictions on menu costs calculations. It provides insights into the pricing strategies and profitability margins in the food and beverage industry. The presentation also includes examples of priced menus and their sales mix analysis.

Menu Development, Planning and
design

Introduction
 Food and beverage industry need prepare attractive menu and accordingly
service the requirements of customers.
 To systematically incorporate operations and attain predetermined goal it
is vital for businesses to focus on each and every element which can
accommodate existing requirements of customer.

Key consideration
 To determine the cost as well as price of menu it is the responsibility of
restaurant or cafe to consider diverse factor for its offering whose
explanation is determined below:
 The impact of costs and revenue
 The impact of seasonality restrictions on menu costs calculations

The impact of costs and revenue
 It involves following cost:
 Energy costs
 Staffing costs

Energy costs
 As Pasco cafe serve different food and
beverages to customer so the manager
need to determine the cost of energy
associated while making particular dish.
 Based on the contribution as well as
expenditure the company set the prices
to generate feasible amount of revenue.

Staffing costs
 This cost is associated with the total number of
manpower working as well as engaged while
preparing several cuisine within cafe.
 The manager of Pasco Cafe fix the prices after
evaluating internal cost and helps in generating
sound profitability margin.

Business environmental policies
 Business environmental policies and the extent to which they impact the
costing of menus
 Current economic climate
 Cost of produce

Current economic climate
 Any fluctuations within economic condition can directly affect the sales as
well as operations of cafe. Like, inflation causes decrease in purchasing
power due to which menu and pricing policies needs to be revived.

Cost of produce
 The pricing displayed on menu gets influenced by overall cost incurred
while preparing produce.
 For instance, any change in the prices of material and vegetable can affect
final cost of produce.

The impact of seasonality restrictions on
menu costs calculations
 It is essential for Pasco Cafe to revise its menu on the basis of seasonal
restrictions and accordingly add different dishes.
 On the basis of this factor Pasco Cafe can change the prices of their
offerings in order to attract as well as retain loyal customers.

Priced Menus To Meet A Range Of Customer
Requirement
Menu
Item
Total
Sold
Menu
Price
Portion
Cost
Food Cost
%
Portion C.M.
[1]
Total Food
Sales
Total Food
Cost
Total
C.M.
Grill
Sandwich 14 9.86 2.48 0.25 7.38 137.97 34.65 103.32
Veg
Sandwich 10 10.76 3.83 0.36 6.93 107.55 38.25 69.30
Crisps 12 6.26 3.38 0.54 2.88 75.06 40.50 34.56
Double
Cheese
Sandwich 7 9.86 3.15 0.32 6.71 68.99 22.05 46.94
Salad 6 13.46 4.73 0.35 8.73 80.73 28.35 52.38
Veg. Lasagne 8 11.66 3.60 0.31 8.06 93.24 28.80 64.44
Veg Burger 7 14.36 6.53 0.45 7.83 100.49 45.68 54.81
Totals 64 664.02 151.00 337.75

Continue…
Item
Total
Sold
Menu
Price
Portion
Cost
Food Cost
% Portion C.M.
Total Food
Sales
Total Food
Cost
Total
C.M.
Cappuccino 33 6.08 1.74 0.29 4.34 200.48 57.32 143.15
Cold Coffee 213 6.08 1.55 0.25 4.53 1293.98 329.72 964.25
Cafe frappé 73 6.26 1.38 0.22 4.88 456.62 100.52 356.09
Hot
Chocolate 21 6.75 2.01 0.30 4.74 141.75 42.15 99.60
Tea 80 5.36 1.40 0.26 3.96 428.40 111.60 316.80
Black
espresso 131 5.81 1.51 0.26 4.29 760.46 198.07 562.38
Cafe Latte 132 6.26 1.58 0.25 4.67 825.66 209.09 616.57
Total 683 ACM = 4.49 4107.33 151 337.75

Conclusion
 On the basis of above presentation it has been determined that while
planning and designing menu the restaurant need to analyse different
factors like economic climate change, costing associated with staff and so
on. Based on diverse cost company need to perform different calculation
like sales mix and profitability margin in order to set the prices of offering.

References
 Baiomy, A. and Jones, E., 2016. Measuring menu attributes in the
international and local resort hotels in Egypt. Anatolia. 27(4). pp.526-
536.
 Gordon, R. T. and Brezinski, M. H., 2016. The complete restaurant
management guide. Routledge.