Menu Development, Planning, and Design Report: Hotel Indigo Analysis

This report focuses on the menu development, planning, and design for Hotel Indigo, covering essential aspects such as menu costing and pricing, major revenue sources, and the impact of staffing costs on profit margins. It delves into break-even analysis and identifies key constraints, including competitor pricing and location considerations. The report emphasizes the importance of menu design and its influence on customer satisfaction, referencing relevant literature and providing a comprehensive overview of the factors affecting menu development. The conclusion highlights the significance of careful planning, considering elements like labor costs and competitor pricing to ensure the menu's success. Furthermore, the report includes a section on the energy costs which are used to develop the menu and also about the Staffing costs which are necessary to manage the menu.

Menu Development, Planning and
Design
Hotel Indigo

Table of Contents
Task B
Introduction
Main body
 Menu costing and pricing
 Main source of revenue from menu
 Staffing cost to profit margin
 Break even
 Key constraints
Conclusion
references

INTRODUCTION
• Menu development will help in satisfying customers and achieve
competitive advantage.
• This report will shed light on key constraints which need to be considered
when designing and planning menu for food outlet.

Menu Costing and Pricing
 It will show the items which will be there in the menu and what are the costs associated
with it and what quantities are sold by the restaurant.

Main Sources of Revenue from Menu
 The highest revenue generating items are:

Use of energy for sustainable food
production
 It is the energy which is used for growing and harvesting crops. As majority of energy
is used in the agriculture sector which is gone through electricity, natural gas etc.

Calculation of staffing Cost for
menu
Profitability Analysis
 It is the major calculation as it is used to know
the profit of the company which they will earn
in the future.

Energy Costs
 it will show that how much energy is used while doing all the restaurant activities and
what they will be costing.
Energy Cost

Staffing Costs associated to menu items
 it includes the staff which is necessary in the business to achieve the objectives or goals
because human resource are very important for the business as without then no business
can run and do not sustain for long period.

Cost to profit margin ratios
 Total Cost Statement of Menu

Cost to Profit Margin

Break Even Point
 The Break even point shows the point at which it will cover all the cost.

Justification of key constraints
considering when costing and
pricing the menu
 Price of competitors should be researched while setting price for the menu of hotel
indigo because if the hotel will provide food item at high price as compare to their
competition then customer will switch and company will not be able to take the
competitive advantage.
 Location is also major factor while costing menu, as in some location people can afford
giving high prices also but in crowded areas where majorly middle class people live
then they cannot afford to pay more for exclusive food items.

CONCLUSION
 Through this report it can be concluded that menu is very important thing and should
be made while considering all the aspects.
 When menu has been developed then factors like labour costs, location, price of
competitors etc. should be considered.

REFERENCES
Books and journals
 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.
 Coburn, J.Q., Freeman, I. and Salmon, J.L., 2017. A review of the capabilities of
current low-cost virtual reality technology and its potential to enhance the design
process. Journal of computing and Information Science in Engineering. 17(3).