Menu Development, Costing, and Pricing: Planning for Profitability

This report delves into the key considerations for costing and pricing menus, emphasizing the limitations and scope of equipment, as well as the impact of revenue and cost from various sources. It analyzes different approaches to menu costing and pricing, such as pricing by competition, demand analysis, portion cost, and raw food cost, to maximize profitability for The River Cafe. The report also covers in-depth planning for menu development, including the use of Key Performance Indicators (KPIs) to measure success, producing and testing the menu, and providing recommendations to meet business objectives. References to relevant academic articles are included to support the analysis and recommendations.

Menu Development, Planning
and Design

TASK B
Determining the key considerations which need to be taken into account when
costing and pricing menus
 There are some major key considerations which are taken into account when
pricing and costing the menus. These considerations are described as follows -
 There are limitations and scope of equipment in relation to cost.
 There is large impact of revenue and cost from various sources which are
included in the menu and dishes planning.
 There are certain seasonality restrictions as menu cost calculations.

CONT….

Analyzing approaches to menu costing and pricing by using
effective methods to maximize profitability
 There are certain approaches to menu costing and pricing by using effective methods
so that profitability of The River Cafe is maintained. With the help of some major
approaches, there are certain aspects as to how effectively and in appropriate manner
menu and costing is being planned for The River Cafe.
 These approaches are — pricing by competition, pricing by demand analysis, pricing
by portion cost, pricing by raw food cost of item. These are some basic approaches
which are taken into consideration for menu costing and pricing. These approaches
are described as -

CONT…
Pricing by Demand Analysis — This is the concept which works on the
demand and supply of products and services in the market. This will help in
maximizing the profitability in the business. If demand is more, there is more
supply of the food items which are added in The River Cafe.

Producing in-depth planning for menu development, including KPI to
measure success, producing and testing the menu along with
recommendations to meet business objectives for organization
 The in – depth planning is being done which helps in creating
value for the menu development plan which is being framed
in an effective and appropriate manner. This is done as -
 The KPI is the type of performance indicator which
helps in evaluating the success of The River Cafe.

CONT…
 The business objectives are being framed to known effectively that the menu
is being planned for the fulfilling the requirements of the customers which helps in
creating value for the menu which has been planned and the items are added in the
menu of
 The River Cafe. There were certain recommendation which were being framed and
helped in analyzing that there are certain changes and modifications which are to be
taken into consideration.

REFRENCES
 Lloyd, C. and et.al., 2021. Hard times in latte land? Analysing pay and working time in the café industry in France,
Norway and the UK. Economic and Industrial Democracy. 42(3). pp.805-827.
 Clapp, J., 2018. Mega-mergers on the menu: corporate concentration and the politics of sustainability in the global
food system. Global Environmental Politics.18(2). pp.12-33.
 Irie, K. and et.al., 2020, August. A Study on Menu Planning Method for Managed Meal-Consideration of the Cost
of Ordering Ingredients. In IFIP International Conference on Advances in Production Management Systems (pp.
679-685). Springer, Cham.
 Karadi, P. and et.al., 2019. Menu costs, aggregate fluctuations, and large shocks. American Economic Journal:
Macroeconomics. 11(3). pp.111-46.