Costa Coffee: Menu Planning, Design, Customer Needs & Strategy

This report provides an in-depth analysis of menu planning and design, using Costa Coffee as a case study. It begins by outlining the principles of menu planning, including balanced menus and diversity considerations, as well as constraints such as production capabilities and ingredient availabilit...Read More

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Principles of menu planning & designing...................................................................................3
Menu planning constraints...........................................................................................................4
Determine the customer and business requirements....................................................................4
Comparing and contrasting different types of menu...................................................................5
Developing menu plan.................................................................................................................6
Producing menu for Costa coffee menu......................................................................................8
Test and evaluate the menu..........................................................................................................8
M2................................................................................................................................................9
D1..............................................................................................................................................10
D2..............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Menu development and planning is a complete process involve different types of menu to
meet customer's requirements. This project is based on the case study of Costa Coffee in context
to menu designing and planning. The company was established in the financial year 1971 by the
founder Bruno Costa and Sergio Costa. Company own the headquarter based in England, United
Kingdom. Currently company is holding a global presence by obtaining stores at approximately
3883 locations at a global level. Company deal in products like coffee, tea, sandwiches, sweet
snacks and iced drinks. This entire project will discuss the menu design and planning related to
the organisation. Henceforth, report will emphasis on principles related to menu planning and
design to meet business requirements. In context to different types of menu requirements of
customers and business will also discuss that further will create an impact over profits of
company.
MAIN BODY
Task A
Principles of menu planning & designing
There are five principles that needs to be taken into accounting planning & designing
menu for an F&B business like Costa Coffee, such as the following:
Balanced menu: Menu should be balanced in terms of offering all the nutritional values such
adequate amount of calories, fat, minerals, proteins, and vitamins, so that physical well – being
of every family members could be ensured. Also, menu must contain five basis groups of food
that is, vegetables, grains, protein, dairy products and fruits. To ensure that the menu is balanced,
it must be developed after taking into account needs & expectations of customers and how their
choices for dished gets switched over time. Further, meeting dietary requirements, including
seasonal items and keeping all dishes within the budget ensures that the menu is balanced.
Diversity considerations: Due to the prevalence of highly diversified society, customer's
profiles are quite differentiated in terms of food preferences & dietary requirements.
Accordingly, customers belonging from different category have different choices and
preferences. Some category of customers needs to be taken into during menu planning are as
follows:

Age: Generally elderly people prefer to have fruits and vegetables within their regular diets while
young people and Kids prefer to have more of fast food within their regular diets.
Culture: Different region have different cultural preferences and accordingly, culture specific
food should form top position within the designed menu.
Beliefs in different religion: It can be seen that many religions has imposed restrictions on the
consumption of certain while the same is highly demanded in other religions.
Medical requirements: With the help of having flexible menu, it can be ensured that customers
with different and changing medical requirements or restrictions can be served continuously by
making changes in menu items and their ingredients.
Lifestyle choices: Due to differing lifestyle, food preference gets changed like vegetarians strives
for fruits, vegetables and dairy products as against non-vegetarians who prefers to have those
dishes made from animal carcass.
Costs: Cost element implies during planning & designing menu that the cost of preparing each
item should be within the range of business affordability. Also, budgeted cost must be recovered
through sale price or revenue generated from the sale of all menu items.
Menu planning constraints
 Availability of production capabilities such as labour is the biggest constraint of menu
planning. This is because their skills and training is not sufficient for including certain
dishes.
 Availability of ingredient is also a constraint as dishes made from seasonal, costly and
rare ingredients should be avoided while planning and designing menu.
 Guests expectation, their social and physiological needs also act as a constraint in menu
planning as it leads to inclusion and exclusion of certain items.
Determine the customer and business requirements
For developing the menu, the costa coffee has to follow customer choice so that it can attract
large customer as well as increase the sales of the organization. Along with this, Costa coffee
need to follow current trends in order to identify opportunities that will help restaurants to grow
in the market (Teng and Wu, 2019). Moreover, customer requirements are consisted of market
trends that influence their choice. Although food and beverage industry has been going through
fast pace with many dynamic change and this organization has to make use of innovative
technology in order to attract customer. In addition to this, customer requirements need to be

considers before developing menu as it can impact on design of menu (Baba, Mohd Shahri and
Hanafiah,2020). Furthermore, customer needs change from time to time so restaurant need to
keep in the mind so that it can satisfy their customer. Along with this, Costa coffee is also
following on the lifestyle choices such as it provides vegetarian food product to their customer.
The company should follow trend such as sugar free coffee and without milk coffee for
consumer that are vegan or have allergy from dairy products. In addition to this, following
current trends while developing the menu helps the organization in increasing their range of
customer.
Additionally, target market also impacts on menu design as well as it is important for
meeting the needs of the customer. Moreover, consumer taste need to be considered in menu
design as it changes the way business conduct their activity. Along with this, consumer
preferences are defined as taste that need to be considered before making menu as it helps in
keeping their customer more satisfied as well as increase their loyalty towards restaurants. In
order to make an appropriate menu Cost coffee has to fulfil the needs of their customer such as
price, quality, choice and convenience as it can influence their choice (Leung, Josiam and
Moody, 2020). Furthermore, for developing and designing menu restaurant need to n considered
business requirements so that it can achieve profitable menus. In addition to this, experience staff
helps the organization in making right menu as it known the needs of the customer and give idea
to the company to deal with any issues. However, good quality of food product and
environments contribute in keeping their customer more satisfied. Although Costa coffee follow
all the legal laws such as food and safety acts as well as food hygiene act followed by restaurant
so that it can provide good quality of services to their customer (Peters and Remaud, 2020).
Comparing and contrasting different types of menu
Table d'hôte: Here limited choices among dishes are offered and the whole meal is provided at a
fixed price. Within a single meal, there are different courses available which limited choices. The
preparation of menu items take place in advance but serving takes place at the set time.
This menu type is advantageous in terms of quicker service by preparing meals in advance.
The limitation of this menu type is that due to limited choices available, there are chances that
customer will not repeat their visit.
A’ la carte: Here number of choices for different dishes are available within different courses
and pricing of each dish is done individually. Also, servings are done for those item only for

which order has been placed by customers and payments are done on the basis of order placed
accordingly.
The advantages of this menu is that it allows for offering higher quality food along with
facilitating customers to choose food depending upon their preferences.
The disadvantage of this menu type is that it requires more time in menu planning and higher
skills of staff in preparing menu items along with necessity to place special equipments.
Set menu: Here less number of choices among dishes are available along with pricing of the
menu is done in advance. Within each course, there are very fewer items. Further, menu items
could not be changed. The suitability of this menu is in huge functions like a function of
marriage function taking place in a banquet hall.
This type of menu type is that it is beneficial in terms of savings costs and time along with
reducing wastages.
The drawback of this menu type is that there is no determination of portion size and also it not
that attractive to be utilized as a marketing tool.
Developing menu plan
For developing menu plan Costa coffee has to conduct market research so that it can identify the
needs of their customer and strategy used by the competitor in order to attract large customer.
Along with this, developing menu plan allows organization to increase their sales in the market.
Market research:
It is the first step that need be followed by firm in order to identify market trends as well as
tactic used by other cafe in order to attract large customer. Along with this, during the market
research it has been identified that most of the consumer are now days prefer healthy foods. It
has also been found that new market trend is vegan in which people avoid dairy products.
Moreover, in market research it has been identified that due to pandemic customer choice has
been changed such as it is demanding healthy and good quality of food in their budget. Along
with this, customer do not prefer to enter into restaurant that are not fulfilling COVID protocols
and food safety regulation set by government (Gadelrab and Ekiz, 2019). Additionally, costa
coffee market position is good but in order to sustain in market it needs to design attractive menu
in order to increase their customer range. Furthermore, it has been found in market research
that customer also demand for good ambience so that it can chill and enjoy their drink and
beverage. However, most of the customer that are in working prefer ordering food online or
takeaways.

Courses: After research it has been found that customer prefers healthy food product with low
budget. Along with this, costa coffee will add energy drink and refreshing smoothies in order to
attract customer. Moreover, it has been found in the research that customer also wants good
ambience so that it can relax (Rita and Arifin, 2020). Thus, coffee costa will add games and live
music so that it can satisfy needs of their audience. In addition to this, costa coffee will add
beverage in their menu like bun, chips and sandwich so that customer can enjoy it with their
coffee. Furthermore, it should add a section of desserts as it will go with the coffee.
Prices: The Costa coffee has differentiated their prices on the size of the drinks such as medium,
large and small. After research, it has been identified that customer prefers low budget food
product. Although, it will give discount to students and on special occasion in order to increase
their sales. Costa coffee will write their price in ascending and descending order so that
customer can easily identify low and high price product easily.
Layout and design: The layout and design of menu will be attractive in order to increase their
sales. Along with this, it will divide the section into three parts such as it will coffee and hot
chocolate will be on from page and it will be highlighted in brown colour. Moreover, on second
page it will include beverage that will be served by restaurant (de Albuquerque Meneguel,
Mundet and Aulet, 2019). On the third page it will add smoothies and it can be divided into
three parts.
Staffs: The costa coffee will segment their staff on the basis of their work and abilities. Along
with this, there will be housekeeping employees, customer care and cooking subordinates.
Moreover, the HR department will distribute their responsibility according to their job role.
Equipment and facilities: The cost coffee will be using good quality of material for producing
food material so that it can keep their customer satisfied (Kim, Sauerwald and Sukpatch, 2021).
Along with this, it will be providing customer care facilities to their consumer in order to
increase their sales.
Legal requirement: The Costa coffee will be following all the legal rules and regulation in
order to avoid government intervention. It will be following safety norms such as food protection
and safety act, Food Hygiene act so that it can provide good quality of food products to their
customer.
Health and Safety: Costa coffee will be following all the safety norms related to COVID so
that customer feel safe. Along with this, it will be making use of all the safety signs so that
employees and customer are aware of hazardous substance (Baiomy, Jones and Goode, 2019).
The company will be keeping safety alarm and fire extinguisher in case of emergency.

Producing menu for Costa coffee menu
In the menu the company has divided their product properly so that customer has variety of
products. Along with this menu price is in ascending order so that consume can easily identify
items according to their budget. Moreover, the price of the product is not very high and not so
low thus it will help in attracting large customer. In addition to this, menu item is fulfilling the
nutrient diet thus it is providing health products to customer.
Test and evaluate the menu
Menu engineering helps the organization in knowing how profitable and popular menu
items. Along with this, it helps will decide item to retain as well as take-off form the menu.
Thus, the main of menu engineering is to increase profit of the company by balancing the menu
from both high and low cost (Yu and Liu, 2021). Although it is very important for restaurants so
that it can remove poor performing items from the menu as well as it highlight the items that are

more profitable. Along with this, for menu engineering organization should have detailed
knowledge about customer taste and preference so that it meet their needs and demands.
 Stars: High Profitability and high popularity
 These items are known as cream of the crop and it have high profit margin and is very
popular with the customer (Sisson and et.al., 2019). Along with this, high star items of
costa coffee are Signature hot chocolate and Blue berry blast muffin. It is very famous in
the market as well as contribute in increasing restaurant sales.
 Puzzles: This item in the menu have high profit margin but are very difficult to sell.
Thus, analysing of menu is necessary so that it can combine with combo offers in order to
drive sales (Abdelmassih and Arendt, 2020). Along with this, in menu of costa coffee it
should combine item such as smokey Mexican and ultimate tandoori chicken toastier
than it will compliment each other in order to increase these item sales.
 Plowhorses: Low profitability and high popularity
 This item on the menu that are popular with customer but are expensive in nature.
 Dogs: Low profitability and low popularity:
 These types of items have low popularity among customer and do not contribute much in
the profitability. These items are Masala and Assam tea that is not famous in the market
it should remove form the list or re invent it.
M2
Customer and business requirement create a huge impact over designing the broad range of menu
to mitigate the consumer requirements. This is recommended that company should avail to the
customer its menu online as well so that all such target customers who can order the product by

staying at home can also enjoy the products and dishes (Quijano and et.al., 2021). Business
requirements are the one very significant and essential for the organisation as Costa Coffee
Company regularly update its menu on the basis to the need and demand of the target customer.
Regular basis of update make the organisation offer all the latest and trendy food items.
D1
Recommendations
This is recommended that the Costa Coffee should focus more on advancing and
modifying the menu of its different food items. This is recommended that the organisation need
to continuously get involve in extensive research over designing the overall menu and advance
its food dishes company is currently offering to its target customers (Wang and et.al., 2021). This
is also recommended the fact that the business must take an actions to control the costing involve
in the menu. This will certainly create a difference for the organisation to improve the customer
feasibility and support. It is recommended to the organisation that cost controlling will allow to
the organisation to offer its product line to more number of target customers in market. Regular
feedbacks should also be taken to identify the modified information in respect to taste and
preferences of the target customers.
D2
In depth plan
The key performance indicator of the Costa Coffee will be the sales made by the
organisation. This is important that the organisation regularly assess and monitor the
performance of the venture in respective target market. Profitability and sales of the company
will be a suitable key performance indicator for the organisation. Furthermore, this is
recommended that on the basis of the customer feedback performance of the organisation will
also monitor. Ratting of the Costa Coffee will also consider as a key performance indicator for
the organisation. The online ratting will allow the organisation to effectively measure and
monitor the performance of the venture in target market.
Task B
Covered in PPT.
CONCLUSION
From the above report it has been concluded that menu development is very important
for the organization as it allows restaurant to attract large customer. Along with this, study has

differentiated about different types of menu that is used by hotel in order to increase sales of
the organization. Furthermore, the report has also concluded about the evaluation matrix that
is used by the company in order to renovate their menu planning.
REFERENCES
Books and journals
Abdelmassih, K. and Arendt, S. W., 2020, August. Menu development for meetings and events:
an opportunity for conveying cultural diversity and inclusion initiatives. In Journal of
Convention & Event Tourism (Vol. 21, No. 4, pp. 355-364). Routledge.
Baba, N., Mohd Shahril, A. and Hanafiah, M. H., 2020. Self-ordering kiosk usage and post-
purchase behaviour in quick service restaurant. Journal of Tourism, Hospitality &
Culinary Arts (JTHCA). 12(1). pp.1-17.
Baiomy, A. E., Jones, E. and Goode, M. M., 2019. The influence of menu design, menu item
descriptions and menu variety on customer satisfaction. A case study of Egypt. Tourism
and Hospitality Research. 19(2). pp.213-224.
de Albuquerque Meneguel, C. R., Mundet, L. and Aulet, S., 2019. The role of a high-quality
restaurant in stimulating the creation and development of gastronomy
tourism. International Journal of Hospitality Management. 83. pp.220-228.
Gadelrab, R. and Ekiz, E., 2019. An investigation of key success factors for restaurant
operations in Saudi Arabia. Journal of Tourism, Heritage & Services Marketing. 5(2).
pp.27-35.
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.
Leung, X. Y., Josiam, B. M. and Moody, B. M., 2020. “I’d like to order with a server.” an
experimental study of restaurant menu performance. Asia Pacific Journal of Tourism
Research. 25(7). pp.766-779.
Peters, K. and Remaud, P.H., 2020. Factors influencing consumer menu-item selection in a
restaurant context. Food Quality and Preference. 82. p.103887.
Rita, R. and Arifin, M., 2020. Strategy Analysis of Regional Tourism Development: Case Study
of Restaurant in Barru District. Publik (Jurnal Ilmu Administrasi).9(2). pp.132-145.

Sisson, S. B. and et.al., 2019. The development of child and adult care food program best-
practice menu and training for Native American head start programs: The FRESH
study. Preventive medicine reports. 14. p.100880.
Teng, Y. M. and Wu, K. S., 2019. Sustainability development in hospitality: The effect of
perceived value on customers’ green restaurant behavioral intention. Sustainabilit. 11(7).
p.1987.
Yu, C. and Liu, C. C., 2021. Use low-carbon ingredients as guidelines for green cuisine menu
development. Turkish Journal of Computer and Mathematics Education
(TURCOMAT). 12(14). pp.2273-2278.