Restaurant Menu Costing, Pricing, and Sales Mix Analysis Report

This report provides a comprehensive analysis of menu development, focusing on costing and pricing strategies for a restaurant. It begins with an introduction outlining the objectives of the report, which include examining the budget, aligning costs and prices with target markets, and justifying key considerations in menu costing and pricing. The report then delves into the costing and pricing of the menu, including a detailed sales mix analysis that calculates the proportion of each product sold, its profitability, and its impact on overall profit. The analysis includes a breakdown of menu items, their portion costs, food cost percentages, and contribution margins. Further sections cover energy and staffing costs, cost and margin analysis, and break-even calculations. Key considerations for pricing and costing are discussed, emphasizing the importance of maximizing profitability while taking into account factors like competitor pricing, equipment costs, and the complexity and seasonality of ingredients. The report concludes by summarizing the key findings and recommendations for effective menu management. References to academic sources are also provided.