Menu Development, Planning, and Design Report: Costing and Pricing

This report delves into the critical aspects of menu planning and design, focusing on costing and pricing strategies for the Pasco Cafe. It emphasizes key considerations such as staffing costs, revenue figures, and the impact of business environment policies. The report analyzes the importance of seasonal menus and their influence on customer attraction. It presents a detailed breakdown of menu costing, pricing, and profit margins, including examples for items like sandwiches, lasagne, and various beverages. The analysis includes total sales, food costs, contribution margins, and percentage breakdowns, providing a comprehensive understanding of menu profitability. The conclusion highlights the importance of considering various factors for effective menu planning, including competitor analysis to maximize customer base and revenue. The report also references relevant academic sources to support its findings.

Menu development,
planning and Design
(Task-2)

Content
 Introduction
 Key considerations of costing and pricing menus
 Produce accurately priced and costed menus for meeting
requirements
 Conclusion
 References

Introduction
Menu planning is defined as an activity
of making decision that what should
be offered to the general public
along with their respective prices so
as to maximise their satisfaction
level.

Key considerations of costing and pricing
menus
There are various key
considerations that must be
consider which includes
framing cost and pricing of
menu.

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Impact of costs and revenue
Staffing cost: Whenever any of the cafe is incorporated it is necessary for
the management to ascertain about the necessary expenses which will
incurred for the process of accomplishing the goals. In context of Pasco
Cafe, it is their responsibility to determine about the expenses which
will incur during the course of preparing the food so that appropriate
prices can be selected for the food.

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Revenue Figures: The management of Pasco Cafe should try to focus
that they will not create any of the problem for themselves at the
time of preparing menu because it will directly have the effect on
revenue of the company.

Business environment policies and its impact:
There are number of responsibilities which are to be complied and in
the same manner it is essential for Pasco Cafe to follow
environmental laws and regulations. It will have a impact on the
organisation as different laws and guidelines will be followed and
even overall profit will also decrease.

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Costing and pricing:
In any of the organisation, costing and pricing are the two different
term and when in comes to costing it is explained as the expenditure
which are to be paid by Pasco cafe for the purpose of preparing any
of the specific dish. On the other side, pricing will try to make us
clear about customers and their willing to pay for any of the food
product.

Impact of seasonality and restrictions on menu
cost calculation
Whenever any of the food organisation prepares the food, it is essential
for them to understand that seasonal food plays crucial role in
achieving the target. Talking about Pasco Cafe, they must prepare
seasonal menu which can attract more number of customers.

Produce accurately priced and costed menus
for meeting requirements.
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%
Cheese
Sandwich 5 $10.95 $3.50 32.00% $7.45 $54.75 17.5 $37.25 9.00%
Tuna
Sandwich 7 $11.95 $4.25 36.00% $7.70 $95.60 $34.00 $61.60 15.00%
Veg.
Lasagne 6 $12.95 $4.00 31.00% $8.95 $77.70 $24.00 $53.70 13.00%
Crisps 5 $14.95 $5.25 35.00% $9.70 $59.80 $21.00 $38.80 9.00%
Veg
Burger 5 $15.95 $7.25 45.00% $8.70 $79.75 36.25 $43.50 10.00%
Totals 40 $618.50 $203.25 $415.25

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Item
Total
Sold
Menu
Price
Portion
Cost
Food
Cost %
Portion
C.M.
Total
Food
Sales
Total
Food
Cost
Total
C.M. C.M.%
Tea 78 $5.95 $1.55 26.05% $4.40 $120.90 $464.10 $343.20 11.66%
Cafe Latte 211 $6.75 $1.72 25.48% $5.03 $362.92 $1,424.25 $1,061.33 31.54%
Cold
Coffee 130 $6.95 $1.76 25.32% $5.19 $228.80 $903.50 $674.70 19.43%
Hot
Chocolate 19 $7.50 $2.23 29.73% $5.27 $42.37 $142.50 $100.13 2.84%
Cappuccin
o 31 $6.75 $1.93 28.59% $4.82 $59.83 $209.25 $149.42 4.63%
Cafe
frappé 129 $6.45 $1.68 26.05% $4.77 $216.72 $832.05 $615.33 19.28%
Espresso 71 $6.95 $1.53 22.01% $5.43 $108.63 $493.45 $384.82 10.61%
Total 669 ACM = $4.98 $1,140.70 $4,469.10 $3,328.93 100.00%

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It can be summarised from the present PPT that menu planning can be
effectively prepared if some aspects are taken into consideration
which includes staffing cost, raw materials and other miscellaneous
expenses. Along with this, information of charging cost by its rivals
can also be analysed in order to attain huge customer base and
revenue.