Restaurant Menu Development, Costing, Planning, and Design Report

This report provides an overview of menu development, planning, and design, specifically focusing on costing and pricing strategies for cafes. It explores critical factors influencing menu costs, including environmental policies, economic conditions, equipment expenses, and staffing costs. The report delves into the importance of effective costing to ensure profitability, covering main dishes, sales mix, revenue sources, and energy consumption. It also presents a break-even point analysis to illustrate financial considerations. The report emphasizes the significance of menu planning in attracting consumers and increasing business success, making it a valuable resource for anyone in the restaurant industry. References to relevant literature are also provided.

UNIT 21- MENU
DEVELOPMENT,
PLANNING AND
DESIGN

TABLE OF CONTENT
 INTRODUCTION
 CONSIDERATION AT TIME OF COSTING MENU AND DISHES
 COST AND PRICE OF MENU
 CONCLUSION
 REFERENCES

INTRODUCTION
For the success and efficient working of café it is very
crucial to have good and attractive menu.
This is necessary in order to attract more consumer
and increase the profitability of company.
The presentation will outline the most important part
of menu that is costing.

Key consideration taken at time of costing
and pricing
 There are many different types of factors
which needs to be taken into consideration at
time the cost and price is charged by the
consumers.
 The cost is the amount which is incurred in
producing the food product and the price is the
one which is charged to the customer after
adding the profit margin within cost.

Cost and revenue
 This is the major factor to be considered because if the
dish is not able to earn revenue more than the cost then it
is not a good option for café.
 This is because of the fact that if cost is not recovered then
it is a loss for the café and it has to bear the expenses of
producing that dish.

Environmental policies
 This also impacts the costing of the dish because if the café
has to abide by large environmental policies then they have
to pay more of money.
 This money will be recovered by adding to the cost of the
food product only. Thus, this will add on to the cost of
dish.

Current economic condition
 This refers to as the economic condition present in
the country which may be either inflation or
deflation.
 In the inflationary situation the costing of product
is high as people will pay high prices also in order
to consume the food products.

Equipment
 This is also a factor which impacts cost of the product
because if equipment cost is high in excess then it will
also be added in the cost of product.
 In contrast to this if the equipment and energy use is
limited then this will not increase the cost of food dishes
to a great extent.

Costing and pricing of menu
 It is very important for restaurant to price the dishes in
such a way that all the cost is being recovered from the
dishes sold.
 This is done in order to earn profits so that the
restaurant can run and operate in a successful manner.

Main and accompaniments for dishes
 Thus, from the above menu the main dishes are the
Asian style veggie box, Spaghetti pasta, Vegan
Margherita pizza and Lemon and blueberry
cheesecake and Fresh fruit juice and these are high
priced.

Sales mix
 This is the proportionate ratio of all the products and
services which are being sold by the company.
 The sales mix is made because of the reason that every
product has different level of productivity and for this it
is necessary for Pasco café to focus on dishes which have
higher profitability so that it will earn good amount of
profit.

Main revenue sources from menu
 From the sale mix only the main sources of revenue for the
café will be outlined.
 This is majorly pertaining to the fact that the more profitable
food dishes will be the one which will yield maximum
revenue for the company.