Menu Development, Planning, and Design: El Parador Profitability

This report provides a detailed analysis of menu development, planning, and design for El Parador restaurant, a well-known food chain in the United Kingdom. It covers key considerations for costing and pricing menus, including the impact of equipment, competitor prices, labor costs, food quality, and legal factors. The report also examines various approaches to menu costing and pricing, such as pricing by portion cost, competition, and raw material costs, to maximize profitability. A realistic menu plan is developed, incorporating customer needs and business requirements, with key performance indicators (KPIs) to measure success. The new menu includes iconic dishes with reasonable prices, focusing on customer satisfaction and awareness of menu changes. The report emphasizes the importance of testing and evaluating the menu to ensure its success and identify areas for improvement. The goal is to create a menu that attracts a large number of customers and increases profitability for El Parador.

Menu Development,
Planning and Design

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK A...........................................................................................................................................3
TASK B...........................................................................................................................................3
Determine the key considerations which need to be taken into account when costing and
pricing menus.........................................................................................................................3
Producing accurately costed and priced menus to meet a range of customer requirements. .4
Analysing various approaches to menu costing and pricing and use effective methods to
accurately cost and price menus to maximise profitability....................................................5
Producing in-depth plan for menu development, including KPIs to measure success...........5
TASK C...........................................................................................................................................5
Developing a realistic plan of menu in order to meet the needs to customers to enhance the
profitability.............................................................................................................................5
Produce a menu which meets customer and business requirements to maximise profitability
for a chosen organisation........................................................................................................7
Test and evaluate the menu produced....................................................................................8
Produce a realistic menu using a fully researched and costed plan that meets the overall
business objective of a chosen organisations.........................................................................9
Make recommendations for improvement based on the tests and evaluation of the menu..10
CONCLUSION..............................................................................................................................11
REFERENCES:.............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
Hospitality industry is a very wide industry that consists of various services with them
such as food-beverage, accommodation, parks, restaurant and the bars etc (Mathews, Patten and
Stokes, 2021). for this report, El Parador restaurant has been undertaken into the account. It is
one of the most famous food chain that is based in the United Kingdom. It is very important for
the owners to manage each and every activities in the workplace through which they can provide
effective services to the customers. There will be the making of the realistic plan of the menu in
order to attract large number of customers. At the end of the report, the evaluation of the menu
will be done in order to check the success of it in the market.
MAIN BODY
TASK A
Covered in PPT
TASK B
Determine the key considerations which need to be taken into account when costing and pricing
menus
It is very important for the food organisation to design the food menu in an effective
manner. Management department should analyses the prices of the food products that they will
offer to the customers. They should effectively set he prices through which the customers will
ready to pay it easily (Kaban and Nasution, 2020). Prices of the products should be set
reasonable and the quality should be provide good. There are various factors play an major role
in the time of deciding the prices in the menu and some of the factors are mentioned below:
Equipments: It mainly impacts the organisation when they are taking the activities in
order to decide the menu prices. In relation to the El Parador restaurant they should use the
effective equipments through which they can set the appropriate prices for the menu.
Competitor's prices: It is one of the main factor that greatly influence the pricing
strategies of the organisation. In relation to the El Parador , they critically checks the prices of
the competitors and after that they finalise the price in the menu (Falomir, 2018). This facilitates
them in givign the tough competition in the market.

Labour costs: Cost in the another factor that play a significant role in deciding the price
in the menu. In relation to the El Parador restaurant they hire the skilled labour in the workplace
through which the quality food products can be delivered to the customers.
Food quality: The products that are uses in the organisation also helps in decidign the
pricing in the menu. Cheap raw material generally maximises the profits in the market but
decrease the customers satisfaction. In relation to the El Parador hotel, they use the quality raw
material from the food supplier through which they can serve best quality and tasty food
products to the customers.
Considering legal factors: Following the rules and the legislations impacts the pricing in
the menu (Ichraf, Soulef and Hichem, 2020). In relation to the El Parador, rely on all the rules
and the legislations through which they become able to charge the right prices of the food
products to the customers in the market.
Producing accurately costed and priced menus to meet a range of customer requirements
Menu
Item
Total
Sold
Menu
Price
Portion
Cost
Food
Cost %
Portion
C.M.[1]
Total
Food
Sales
Total
Food
Cost
Total
C.M.
C.M.%
Coco
pie
12 18.5 3.29 20.00% 14.21 329.5 70.93 248.57 9.00%
Tomato
Soup
19 22.95 3.74 20.00% 15.21 440 110.75 339.25 12.00%
Fish &
rice
13 21.95 4.93 20.00% 13.02 275.35 70.04 200.31 6.00%
Mutton
cocoa
16 4.25 0.68 20.00% 1.57 50.25 10.6 40.65 1.00%
Nachos
cheese
16 4.25 2.3 30.00% 2.95 50 21.8 30.2 1%
Sticky
Toffee
19 5.1 1.38 32.00% 1.57 70.05 20.27 40.78 2%

Pudding
Analysing various approaches to menu costing and pricing and use effective methods to
accurately cost and price menus to maximise profitability
There are various types of approaches that are to be considered in the pricing through
which profits can be increased. Different kind of approaches are mentioned below that are used
by the El Parador restaurant:
Pricing by Portion cost: It means that the portion will be served according to the serving
the one item at a fixed price (Dagenais and et.al., 2022). It can be calculated by the cost of the
purchased portion.
Pricing by competition: It means to analyse the prices of the competitors that can affects
the operations in the organisation. In relation to the El Parador restaurant they keep the prices of
the products lower than the competition through which they can attract more customers towards
their business.
Pricing of the raw material: It is one of the major part that decided the cost of the food
products in the market. It can be calculated by decreasing the profits from the selling price.
Producing in-depth plan for menu development, including KPIs to measure success
Key performance indicators are undertaken in order to analyse the performance of the
menu that has been produced in the market. In relation to the El Parador, by analysing the
Produce a in-depth plan for menu development, including KPI to measure success customer
engagement they can check the performance of their menu (Lubis and Azizah, 2018). It is very
important to analyse the performance of the menu and corrective measures can be undertaken if
any change is required.
TASK C
Developing a realistic plan of menu in order to meet the needs to customers to enhance the
profitability
Business organisation must analyse all the factors through which they can develop a
realistic menu. The use of the appropriate resources helps the company to carry out the activities
in a effective manner. Leaders of the organisation should perform together in order to attain the
customer satisfaction in the market. They should effectively analyse the needs and wants of the

customers in the market. There are various steps that should be followed by the organisation in
order to make the realistic plan for the menu. Various steps are described below:
 Conduct a menu assessment: It is the first step in which the organisation has to analyse
the menu. It is the important part of the organisation in which they have to evaluate the
menu that has been made. In relation to the El Parador, they can checks the menu through
which they can check that if any modifications is needed in the menu or not.
 Define the needs: It is the another main part of the process in which they have to ana;yse
the needs of the organisation. In relation to the El Parador, they can come to know the
changes they have to made in the menu (Kazak and van Hoof, 2018). It is very important
for them to add the variety of the dishes in the menu through which they can increase the
profitability in the business. It facilitates the company to get overall growth in the market.
 Carry on research: In this step of the plan, the organisation has to do the market
research. Social media helps the food organisation in order to make changes in the menu
in regards to the trends of the market.
 Explore and taste: It is the next important part of the plan that focuses on to do the
experiment with the foods through innovation. In relation to the El Parador, they should
add on the innovative dishes in their menu through which they can generate more revenue
in the market.
 Create and present: It is one of the crucial part of the plan. The way dish is presented to
the customers also plays an major role (Millar, Groth and Mahon, 2018). The food
organisation should serve the food in a professional way through which they can get large
number of customers in the business.
 Get feedback: It is also one of the most important part in which the organisation should
take the feedbacks from the persons have a relation with the organisation. To enhance the
present quality of the menu, it is important for them to take the regular feedbacks from
the customers so that they can make changes according to the new demands and trends.
 Establishing pricing: It is the last and the main step in which the price of the product has
to be decided by the food organisations in the new menu. It provides convenience to the
customers as they can easily get to know about the price of the food products and which
one they want to order.

Produce a menu which meets customer and business requirements to maximise profitability for a
chosen organisation
There is a very importance of designing the menu in a effective manner. In relation to the
El Parado, they will use various principles of the menu design through which they can fulfil the
needs and wants of the customers in the market. In today's time the market is dynamic and the
taste of the customers are kept on changing. Use of the appropriate legislations and the rules
helps the organisation to design the effective menu. Various items in the food menu facilitates
the organisation to attract large number of customers towards the business. It maximises the
profitability in the business. New menu for the organisation is designed below:
Name of dish Price
Coco pie 15
Tomato soup 20
Fish & rice 15
Mutton cocoa 18
Nachos cheese 16
Sticky Toffee Pudding 14
The new menu will contain the iconic dishes of the United kingdom that will facilitates the
organisation to attract large number of customers towards the business. The prices that the
organisation has fixed of their food products are very reasonable and the customers in the market
can easily afford them. It is very important for the organisation to work upon the new dishes they
have been introducing in the market (Nguyen, Sidorova and Torres, 2022). This will helps the
organisation to let the customers choose the new menu over the old through which the
organisation can increase their probability in the market. In relation to the El Parador, they have
to focus on the customer satisfaction by providing the effective dishes in their menu. It is
also important for the El Parador organisation to make the customer aware about the changes that
they have been introduced in their menu. They have introduced several dishes in the menu
through which they can become able to attract large number of customers in the market.

Test and evaluate the menu produced
It is very important for the organisation to analyse the menu that has been produced in the
workplace. The uses of the KPI will help the organisation to check the performance of the
company and the overall success. In order to check the performance of the company it is
necessary for the food organisation to check the status of their menu in the market. If there are
any gaps or lack in the process it can be correct by using effective framework through which the
food menu that has been prepared can be make more successful. Regular check on the
performance of the menu in the market help the company to carry out the activities in a
systematic manner (Kim and et.al., 2019). In relation to the El Parador, they will analyse the
performance of the menu by using various indicators that are as follows:
Key performance indicators: These are the most effectively parameters that help the
organisation to analyse their performance in the market and through which they can achieve the
goal and the objectives in the market. It is the effective ways through which the organisation can
get to know how they are achieving the customer satisfaction in the market. It facilitates the
organisation to stay on the right track by analysing their performance in the market. In relation to
the El Parado, they uses various KPI's that are as follows:
 Marketing KPI: It is one of the most effective indicators that is used by the
organisations to check the performance in the market. In relation to the El Parador, they
measure the overall success of the organisation by using effective marketing strategies.
Organisation analyse the social engagement of the employees with the customers so that
the performance of the company can be measured. By introduce the menu in the market,
the company can effectively analyse the traffic on the websites which can be enhanced
and results in the more success and growth in the future.
 Customer engagement KPI: Management department of the El Parador organisation
check the rate of the customers and the engagement through which they can achieve more
profits and the success in the market (Putri, 2019). Marketing people of the company
checks the engagement of the customers through online feedbacks and the comments.
They also use the customer retention in the company through which they measure the
success in the market.
 Profitability KPI: It is very important for the business organisation to check their
probability in the business through which they can get to know about their actual

performance in the market (Kim, 2019). Through this the organisations can get to know
about the changes they have to made in the workplace if the profits are not coming as
expected. In relation to the El Parador organisation, they have introduced new menu in
the market and they can become able to generate more profits in the workplace. As more
customers will attract to the restaurant because of the new menu.
Customer feedback: It can be defined as the reviews and the comments that are directly
taken from the customers in the market. In this the customers shares their ideas and the thoughts
after using the products and the services of the organisation. There are various ways through
which the organisations can take the feedbacks of the employees. In relation to the El Parador
organisation they can effectively take the review of the customers in the market (Bonzanigo and
et.al., 2018). There are various ways through which they can take the feedbacks of the customers
in the market such as Websites, application, social media etc. It will facilitated the managers of
the organisation to make the changes in the menu or the dishes they are serving to the customers
in the market. Leaders of the El Parador, should have to critically analyses the reviews of the
employees in the market. It will make the organisation to enhance the performance of the actions
they are carrying out on the daily basis.
Various techniques will helps the organisation to analyse the performance of their
restaurant in the market.
Produce a realistic menu using a fully researched and costed plan that meets the overall business
objective of a chosen organisations
In relation to the El Parador they should introduced that food items in the menu that are
in the latest trends in the market. In order to produce realistic menu the management department
of the organisation must analyse the price of the competitors. There are various steps that the
organisation should consider while developing the menu in the restaurant. By analysing the price
of the competitors they will become able to set the effective price for the food menu (Jatnika and
Medyawati, 2018). It is very important for the leaders of the organisation to analyse the cost that
is involved in producing the menu for the restaurant. In relation to the El Parador organisation
they will produce that menu in which they will include all the famous dishes of the London
through which they become able to attract large number of customer towards their food business.
Leaders of the organisation critically analyses the needs and wants of the customers and
according to that they will provide the dishes in the market.

Make recommendations for improvement based on the tests and evaluation of the menu
There are various points that the El Parador organisation must undertaken in order to
analyse the menu. Some of the recommendation are mentioned below:
 one of the most important recommendation for the organisation is to analyse the needs
ans wants of the customers. Through this they will be introduced that food items throhyg
which they can satisfy their needs.
 Leaders of the organisation should check what the customers is demanding in the market
and accordingly they should make the changes in the menu (Yan, 2018). They should
analyse the customers preferences and taste and through which they should take further
actions in order to improve it.
 In order to provide convenience to the customers El Parador hotel should use the real
images of the food products and through which the customers can get the idea of they
want to order.

CONCLUSION
From the above report it has been analysed that it is very important for the food
organisation that they should develop the effective menu through which they can attract large
number of customers in the market. Various principles of the menu design and the have been
analysed. Different requirements of the customers and the business has been analysed. There are
various have been undertaken in order to develop realistic menu. At the end of the report,
evaluation and the monitoring of the menu has been undertaken.

REFERENCES:
Books and Journals
Dagenais, B and et.al., 2022. Adopting Sustainable Menu Practices in Healthcare Institutions:
Perceived Barriers and Facilitators. Canadian Journal of Dietetic Practice and
Research, pp.1-8.
Falomir, Z., 2018. Including hard restrictions into Diet4You menu planner. Artificial
Intelligence Research and Development: Current Challenges, New Trends and
Applications, 308, p.190.
Ichraf, J., Soulef, S. and Hichem, K., 2020, November. Incorporating the decision maker's
preferences in Dietary Menu Planning problem. In 2020 International Conference on
Decision Aid Sciences and Application (DASA) (pp. 806-811). IEEE.
Kaban, R. and Nasution, R.J., 2020. Penerapan Metode Rapid Application Development (RAD)
dalam Perancangan Sistem Pemesanan Menu menggunakan Quick Response (QR)
Code. MEANS (Media Informasi Analisa dan Sistem), pp.144-152.
Kazak, J.K. and van Hoof, J., 2018. Decision support systems for a sustainable management of
the indoor and built environment. Indoor and Built Environment, 27(10), pp.1303-1306.
Kim, S and et.al., 2019. A design for additive manufacturing ontology to support
manufacturability analysis. Journal of Computing and Information Science in
Engineering, 19(4).
Kim, S., 2019. Design strategies to respond to the challenges of shrinking city. Journal of urban
design, 24(1), pp.49-64.
Lubis, M. and Azizah, A.H., 2018, August. Towards achieving the efficiency in zakat
management system: interaction design for optimization in Indonesia. In International
Conference on User Science and Engineering (pp. 289-301). Springer, Singapore.
Mathews, A., Patten, E.V. and Stokes, N., 2021. Foodservice Management Educators’
Perspectives on Nutrition and Menu Planning in Student-Operated Restaurants. Journal
of Nutrition Education and Behavior, 53(3), pp.223-231.
Millar, C.C., Groth, O. and Mahon, J.F., 2018. Management innovation in a VUCA world:
Challenges and recommendations. California management review, 61(1), pp.5-14.
Nguyen, Q.N., Sidorova, A. and Torres, R., 2022. User interactions with chatbot interfaces vs.
Menu-based interfaces: An empirical study. Computers in Human Behavior, 128,
p.107093.
Putri, C.S., 2019. Utilization of Testimonials Menu as Submission Media Information on Buyer
Satisfaction on the Website E-Commerce Raharja Internet Café. Aptisi Transactions on
Technopreneurship, 1(1), pp.117-126.
Bonzanigo, L and et.al., 2018. Building the resilience of WSS utilities to climate change and
other threats: a road map.
Jatnika, I. and Medyawati, H., 2018. Augmented Reality Design of Indonesia Fruit Recognition.
International Journal of Electrical & Computer Engineering (2088-8708), 8(6).
Yan, M.R., 2018. Improving entrepreneurial knowledge and business innovations by simulation-
based strategic decision support system. Knowledge Management Research & Practice,
16(2), pp.173-182.