Pesco Cafe: Menu Development, Planning, Design, Costing and Pricing

This report provides a comprehensive analysis of menu development, planning, and design, with a specific focus on costing and pricing strategies for Pesco Cafe. It begins with an introduction to menu development as a crucial communication tool for hospitality businesses. The report then delves into the constraints considered in menu costing and pricing, including the impact of cost and revenue, business environment policies, and seasonality. It emphasizes the interrelation between costing and pricing and highlights how various factors influence menu design. The report also presents an accurate costed and priced menu, including itemized details such as portion costs, menu prices, food cost percentages, and contribution margins. It examines the impact of these factors on menu profitability and customer satisfaction, concluding that effective menu development requires careful consideration of all constraints to attract customers, retain existing guests, and adapt to trends. The report also includes references to relevant academic sources.

MENU DEVELOPMENT,
PLANNING AND DESIGN

• Introduction
• Analysis of constraints considered in costing and pricing menu
• Accurate costed and price menu to meet customer requirements
• Conclusion
• References
Table of content

Menu is a tool or a document by which a
restaurant, cafe or a hotel communicate with its
customers and guests visiting their place for
enjoying their services. Menu development,
planning and designing all are essential and very
complicated tasks which are performed by
managers. In a menu all the items of food and
beverages which restaurant serves to people
according to different seasons are present.
Introduction

Costing and pricing of menu are interrelated, the cost of food items which is incurred in
order to acquire it and transform it form raw to finished products is added into its value and
ultimately priced accordingly in the menu. Therefore, costing and pricing of menu is a very
wide section, where many constraints has their effects and influence the menu development,
planning and designing. Some of these factors are elaborated below as follows:
Analysis of constraints considered in costing and
pricing menu

The impact of cost and revenue- The first factor is cost and revenue, the amount which is
incurred by Pesco cafe in order to bring the raw material into finished goods and serve
customers according to their needs and desires is the cost. Accordingly, the sales they are
making and amount earned is their revenue.
Continue….

Business environment policies- Every cafe, restaurant and hotel have their policies by
which they work and make their decisions for running their businesses. The policy of Pesco
Cafe will have huge effects on its menu pricing. Some hospitality service providers have
renders luxury services therefore they keep their prices ups, others have dynamic structure
attracting most of the population they have flexible pricing. Few restaurant working
according to different seasons which have unique impact on their pricing of their menu.
Continue….

The impact of seasonality restrictions- Restaurant, hotels or cafes has to develop their
menu according to different seasons. The current season has huge impact on the menu
costing and pricing as the cost of raw material and their accessibility depends upon prices
upon it.
Continue….

These are number of constraints or factors which has huge influence on the menu costing
and pricing. These constraints are effective and should be considered by every hospitality
service provider while preparing their menu in order to keep up with the rends and work
effectively. The managers of Pesco Cafe will also consider these elements while
developing, planning and designing menu for seeking attention of new people, changing
them into potential buyer along with retaining old guests.
Continue….

Accurate costed and price menu to meet customer
requirements
A B C D E F G H I J
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.%
Ham Sandwich 12£10.95 £2.75 25.00%£8.20 £131.40 £33.00 £98.40 24.00%
Tuna Sandwich 8£11.95 £4.25 36.00%£7.70 £95.60 £34.00 £61.60 15.00%
Salad 10£6.95 £3.75 31.00%£8.20 £69.5 £21.5 £48 20.00%
Cheese Sandwich 5£10.95 £3.50 32.00%£7.45 £54.75 £17.5 £37.25 9.00%
Crisps 4£14.95 £5.25 35.00%£9.70 £59.80 £21.00 £38.80 9.00%
Veg. Lasagne 6£12.95 £4.00 31.00%£8.95 £77.70 £24.00 £53.70 13.00%
Non veg. Lasagne
Veg Burger 5£15.95 £7.25 45.00%£8.70 £79.75 36.25£43.50 10.00%
Totals 50 £568.5 £151 £337.75
Item Total Sold Menu Price Portion Cost Food Cost % Portion C.M. Total Food Sales
Total Food
Cost Total C.M. C.M.%
Cappuccino 31£6.75 £1.93 28.59%£4.82 £59.83 £209.25 £149.42 4.63%
Cafe Latte 211£6.75 £1.72 25.48%£5.03 £362.92 £1,424.25 £1,061.33 31.54%
Espresso 71£6.95 £1.53 22.01%£5.43 £108.63 £493.45 £384.82 10.61%
Hot Chocolate 19£7.50 £2.23 29.73%£5.27 £42.37 £142.50 £100.13 2.84%
Tea 78£5.95 £1.55 26.05%£4.40 £120.90 £464.10 £343.20 11.66%
Cafe frappé 129£6.45 £1.68 26.05%£4.77 £216.72 £832.05 £615.33 19.28%
Cold Coffee 130£6.95 £1.76 25.32%£5.19 £228.80 £903.50 £674.70 19.43%
Total 669 ACM = £4.98 £1,140.70 £4,469.10 £3,328.93 100.00%

The above presentation concludes that menu developing, planning and designing is on eof
the most essential and difficult task of a hospitality service provider. The managers of cafe,
restaurant or hotels needs to undertake sever actions and consider all constraints while
preparing a menu for the business.
Conclusion

Aram, F., and et. al., 2019. Design and validation of a computational program for analysing
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VanTassel-Baska, J. and Baska, A., 2019. Curriculum planning and instructional design
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References

Thank you