Menu Development, Planning and Design

This presentation discusses the design, development, and planning of the menu for Pasco Café, including the cost and price considerations. It explores factors that affect price determination and references relevant research on menu costs and price dynamics.

Menu Development, Planning and design

INTRODUCTION
Menu refers to list of food and beverages offered to customers by the restaurant and
places which are involved in the operation of food and beverages business. This report includes
design, development and planning of the menu for Pasco Café.
This is cafe which offers drinks like tea and coffee and in food cafe offers fast food and snakes.

Cost and Price of the Menu
Costing and Pricing of the Menu is equally important as taste and
variety of the food. In this cost of the menu refers to cost which is
incurred by the cafe.
Price refers to price which is asked by the cafe in exchange of the foo
they offer to the customers. The difference in the cost and the price is
the profit earned by the cafe.

Cost of the Menu
Cost of the menu is depended on various other cost which
collectively become cost if the food. Cost is the overall cost of the
food which is offered to customers this cost includes various factors
which are-
cost of Raw Material
Cost of labor
Cost of equipment

Cont…
Cost of the food includes-
cost of energy
VAT
Place rent
salaries
cost of resources

Price of the Menu
Cost is for business when it comes to customers they are
charged price for the food which includes various factors
like cost which is prevailed in market and the cost which
customers are ready to pay for the food and drinks they buy.
Customers are very important to consider before
determination of price. So is intended profit margin of the
owner.
Price of the menu includes cost of the food, profit margin
and tax which are charged from the customers.

factors which affect price determination
There are various factors which affect price determination of the menu. These are-
Competition
Pasco Café have to determine competition in the industry. In the basis of the level of the
competition Pasco Café can charge its prices.
Service Level
This is another factor which is included in the price of the service in this context refers to
involvement of Pasco Café with its customers. To which extent Pasco Café is able to fulfil
expectation of its customers other than food and beverages it provides.

Quality of the Food
Quality is an important factor which affect the price decision of the Cafe. Cafe which provide
high quality food ca charge higher price than others.
Sales Mix
This refers to all the products which are sold by the Pasco Café. Cost of all the food products are
not same and along with that all the products cannot be equally priced.
Intended Profit Margin
This refers to profit which the owner of the business intend to earn. In case business intends to
earn high profits than price of the products will be high.

References
Karadi, P. and Reiff, A., 2019. Menu costs, aggregate fluctuations, and large shocks. American
Economic Journal: Macroeconomics. 11(3). pp.111-46.
Babaioff, M., Gonczarowski, Y.A. and Nisan, N., 2017, June. The menu-size complexity of
revenue approximation. In Proceedings of the 49th Annual ACM SIGACT Symposium on Theory
of Computing. (pp. 869-877).
Knotek, E. S., 2019. The roles of price points and menu costs in price rigidity.
Schoenle, R., 2017. International menu costs and price dynamics. Review of International
Economics. 25(3). pp.578-606.