Menu Development Plan with KPI: The Hands and Flowers Case Study

This report delves into the menu development, planning, and design strategies for The Hands and Flowers, a renowned establishment in the United Kingdom. It addresses key considerations in menu pricing and costing, analyzing various approaches to enhance profitability. The report produces accurately costed and priced menus tailored to customer requirements, and presents an in-depth menu development plan incorporating Key Performance Indicators (KPIs) to measure success. A realistic menu plan is developed to meet customer needs and increase business profitability. The study includes testing and evaluation of the menu, culminating in recommendations for improvement based on the evaluation results. The ultimate goal is to produce a well-researched and costed menu plan that aligns with the overall business objectives of The Hands and Flowers.

Menu Development,
Planning and Design

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK A...........................................................................................................................................3
Key considerations which need to be taken into account during pricing and costing of menu.. 3
Produce accurately costed and priced menus to meet the requirements of customers...........4
Analyse approaches to menu costing and pricing and methods to accurately cost menu in
order to enhance profits..........................................................................................................6
Produce an in depth plan for menu development with the help of KPI to measure...............6
Development of realistic plan of menu in order to fulfil the requirement of customers........6
Develop menu which satisfy the requirements of business and customers in order to increase
profitability.............................................................................................................................8
Test and evaluate the menu produced ...................................................................................9
Produce a realistic menu using a fully researched and costed plan that meets the overall
business objective of a chosen organisations.......................................................................10
Make recommendations for improvement based on the tests and evaluation of the menu..10
Produce an in-depth plan for menu development, including KPI to measure success.........10
CONCLUSION.............................................................................................................................12
TASK B.........................................................................................................................................12
REFERENCES:.............................................................................................................................13
Books and Journals...............................................................................................................13

INTRODUCTION
Menu development and designing refers to the process which involves selection of
different dishes, beverages and desserts for the menu. During the development of menu, hotels
and restaurants should analyse the market including guest demographics, specialities and local
ingredients so that they can attract large number of customers (Kaban and Nasution, 2020). This
report is based on The hands and flowers which is situated in United Kingdom. It also provide
cottage accommodation along with renowned haute couisine. This report will include key
considerations during pricing and costing of menu. Different approaches are used during pricing
so that profitability can be increased. Menu development plan is produced with the help of KPI
to measure success. A realistic plan is developed in this report so that organisations can increase
their profitability. Test and evaluation of menu plan is also carried out and justified
recommendations are also mentioned in this report.
MAIN BODY
TASK A
Key considerations which need to be taken into account during pricing and costing of menu.
It is responsibility of an organisation that they have to prepare menu which can easily
affordable by their targeted customers. Different cost should be considered which involves in the
development and costing of the menu. The hands and flowers should maintain higher quality so
that customers can willingly pay them. There are various factors which organisation have to
taken into account while fixing their prices which are discussed below:
Equipment: Hotel industry have to use various equipments during the time of
preparation of various dishes and beverages (Lubis and Azizah, 2018). The hands and flowers
include equipment costs also in their menu development so that they can earn higher revenues.
Equipments help them in enhancing their overall productivity which is essential for the growth
and development.
Price of competitors: Businesses should analyse the prices of their competitors which
they offer to their customers. It helps The hand and flowers in maintaining the level of standard
in their price offerings which can cut down the power of competition. Offering prices slightly
lower then the competitor price results in engagement of large number of customers.

Food quality: It is important to match the level of price and quality of food so that
organisations can develop the interest of their customers. Raw material affect the price of
particular dish which should be analysed by the managers of the hand and flowers so that they
can prepare effective menu for the customers.
Labour cost: Organisations should hire skilled and experienced labours so that they can
produce higher quality offerings (Pappalardo and La Rosa, 2020). Most of the operations in the
hands and flowers are carried out by their labours which should be tracked by their managers on
regular basis. It is important to train the employees so that they can eliminate wastage and errors
from the operations.
Considering legal factors: It is mandatory to follow all the rules and regulations which
is formulated by the government for hotel industry so that they do not over charge from their
customers. The hands and flower set prices which are necessary for them. It is necessary to
provide affordable prices which attract large number of customers.
Produce accurately costed and priced menus to meet the requirements of customers

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.%
Potato
pancake
s
10 16.5 3.29 20.00% 14.21 329.5 70.93 248.57 9.00%
Warm
pineapp
le
17 20.95 3.74 20.00% 15.21 440 110.75 339.25 12.00%
Glazed
omelett
e
11 19.95 4.93 20.00% 13.02 275.35 70.04 200.31 6.00%
Milk
toffee
tart
14 2.25 0.68 20.00% 1.57 50.25 10.6 40.65 1.00%
New
season
mango
14 2.25 2.3 30.00% 2.95 50 21.8 30.2 1%
Crispy
beef
17 4.95 1.38 32.00% 1.57 70.05 20.27 40.78 2%

Analyse approaches to menu costing and pricing and methods to accurately cost menu in order to
enhance profits
During the planning and development of menu various approaches should be considered
so that organisations can offer affordable prices to their customers. The hands and flowers used
different types of approaches which can be explained as follows:
Pricing By Raw Food Cost Of Item: This approach suggest that raw materials should be
included in the final cost. It plays major role in setting the prices of menu which can be identified
with the help of dividing the raw food cost of item with desired food cost percentage which helps
in getting final price.
Pricing by competition: It suggest that organisations should analyse the price of their
competitors so that they can offer prices which can attract the large number of customers in
appropriate manner (Liu, Wang and Tzeng, 2018). The hands and flower try to fix their prices
lower then their competitors so that they can acquire large market area.
Pricing by portion cost: The cost of one serving should be analysed according to this
approach so that organisations can do justice with their customers. Purchase cost should be
divided by portion so that The hand and flowers can easily retain their customers.
Produce an in depth plan for menu development with the help of KPI to measure.
Managers of hotel industry should measure the performance of their menu on regular
basis so that they can attract people. Increasing sales help The hand and flowers in understanding
their effective performance of their developed menu (Wang and et.al., 2021). Key performance
indicators help in identification of actual position in the market. It assist organisation in
improving their operations which are not satisfying the needs and wants of the customers.
Managers should make relevant plans so that they can alter and modify their negative operations
which enhance their overall profitability.
Development of realistic plan of menu in order to fulfil the requirement of customers
It is necessary to follow relevant steps during the development of realistic menu plan.
Steps results in enhancement of productivity and profitability of organisation which results in
establishment of their brand image in all over the world. The hand and flowers should analyse
the requirements of their customers so that they can offer dishes and beverages in best possible
manner. The organisation believe in group which and they promotes team during operations

which results in contribution of required efforts. With the help of steps they can improve the
quality of their products which satisfy the expectations of their customers. Steps are discussed
below which are used to formulate realistic plans are as follows:
Conduct menu assessment: Proper evaluation should be carried out by an organisation
so that they can understand the requirements of the market. Assessment help The hand and
flowers in prioritizing the functions which are essential for their targeted customers (Kim, 2021).
Taste and preferences of customers should be assessed in proper manner so that they can add and
modify the items related to the drinks and foods. All the important aspects should be taken into
account like culture, background and lifestyle as it affects taste of an individual.
Define the needs: It is responsibility of an organisation that they have to know about the
needs of their targeted customers. Managers of The hand and flowers interact with their
customers on regular basis so that they can maintain healthy relation with them. Building
relationship further help in getting feedbacks and reviews about the services and food which is
essential part of development of realistic menu. The hand and flowers implement various
innovative ideas in their offerings like adding vegan and gluten free dishes which attract large
number of audience towards organisation.
Carry on research: Proper research of customers and market should be carried out so
that organisation know about the current market trends and preferences (Picciotto, 2020). The
hand and flowers use various social media platforms which increase their connectivity with their
targeted customers. It assist in changing various operations which are not required for the
offering of food and beverages.
Explore and taste: Employees of hotel industry should focus on the popularity and
speciality of the food which their customers prefer (Kazak and van Hoof, 2018). The hand and
flowers can add variety of unique dishes which help them in developing interest of their
customers in effective manner.
Create and Present: It is important to focus on the presentation of the food and
beverages as it creates impression on the mind of customer which should be positive in nature.
The hand and flowers follow professionalism in serving food to their customers so that they can
attract and engage customers in better manner.
Get feedback: This step suggest that organisations should take proper suggestions and
feedbacks from their customers so that they can alter and change their irrelevant functions.

Communication with customers on regular basis helps in creating personal touch with them.
Review after services help The hand and flowers in improving their menu which help in higher
profitability.
Establish Pricing: The last step is to set the prices for the menu which decide the success
and growth of the organisation. The hand and flowers ensures that they offer prices which justify
the quality and quantity of their item. Best available prices definitely attract the mind of
customers which results in higher revenue generation for an organisation.
Develop menu which satisfy the requirements of business and customers in order to increase
profitability
Organisation should update and upgrade their menu on regular basis so that they can
develop the interest of their customers and attract new customers. Menu plays essential role in
providing success to an organisation by fulfilling their requirements in desired manner (Millar,
Groth and Mahon, 2018). The hand and flowers follow all the approaches along with rules and
regulations of the government so that they can increase profitability in effective manner. Menu
should include all the items which can match the level of taste according to the culture and
lifestyle of customers.
Name of dish Price
Potato pancakes 10
Warm pineapple 17
Glazed omelette 11
Milk toffee tart 14
New season mango 14
Crispy beef 17
The hand and flowers updated their menu and add various famous and unique items
which results in higher sales. They have trained their employees and give them knowledge
regarding the preparation and presentation of food and beverages (Gu and et.al., 2018). They
have also included various health conscious food items which are best suitable for the people

who are conscious about their lifestyle. The hand and flowers should evaluate the effectiveness
of their menu so that they can engage customers in appropriate manner.
Test and evaluate the menu produced
Menu of an organisation should be effectively tested by the managers so that they can
understand the market position and situation. Key performance indicators should be used by The
hand and flowers so that they can identify their actual strength and weaknesses. All the required
items should be included in the menu so that organisation can effectively satisfy the requirement
of customers which help in further growth and development. Frameworks used by hotel assist in
identification of negative points so that organisation can easily overcome them. Number of
parameters are used by The hand and flowers which assist in evaluation of menu are as follows:
Key performance indicators and benchmarks: Tracking of profits and losses in an
organisation play important role. It is important to understand the profitability as it assist in
better growth and development (Wehmeyer and et.al., 2019). Performance measurement help
organisation in achievement of objects by satisfying the requirements of the targeted customers
in all over the world. The hand and flowers track various operations and maintain quality of their
services so that they can growth their business. Key performance indicators help them in
achievement various competitive advantages so that they can compete with their competitors.
Various factors of key performance indicator are as follows:
Marketing KPI: It helps organisation in understanding the level of engagement of
targeted customers in an organisation. Different marketing strategies are used by The hand and
flowers which assist them in managing their customers in proper manner. Managers of
organisation also manage their website so that they can analyse the number of people visit and
check their website on regular basis.
Customer engagement KPI: Customers are the main reason for the success of
organisations which should be majorly focused. The hand and flower try various tools and
techniques to attract their customers which results in higher profitability (Grady and et.al., 2018).
All the online feedbacks and reviews should be monitored by the managers so that they can
identify the number of customers engaged with them.
Profitability KPI: All the profits should be measured so that organisation can easily
maintain their cash reserves. Various necessary actions should be taken by an organisation in

order to increase the profitability of their organisation. Managers of The hand and flowers
involve various unique items in their menu so that they can attract people in effective manner.
Customer feedback: It is important to gather information about the targeted customers
so that organisation can identify the taste and preferences of the customers. The hand and flowers
should use various social media platforms and face to face interactions so that they can identify
requirements. It is essential to focus on the weak points so that organisation can establish their
brand image, the hand and flowers manages their operations in order to enhance their
productivity which results in growth and development.
Produce a realistic menu using a fully researched and costed plan that meets the overall business
objective of a chosen organisations
Menu creates first impression on the customers. There is need of providing best menu that
includes the dishes preferred by the customers. The cost mentioned in the menu of The hands
and flowers are as per the requirement of customers (Goh, 2020). It is necessary to decide the
prices in appropriate manner so that best outcomes are attained. There is need of evaluating the
needs and wants of the customers so that they are able to provide effective conditions to the
customers. The main aim of The hands and flowers is to earn profit and set an effective position
in market. The prices of the food items are set according to the value being provided by them.
Make recommendations for improvement based on the tests and evaluation of the menu
There is need of checking the menu before presenting it to the customers. It is necessary to
consider some of the points that will help to evaluate the performance of menu in market and
they are as follows:
 There is need of using right tools and techniques is necessary to check the menu (Putri,
2019). There is need of checking the attractiveness of the menu so that the success rate
can be analysed. It becomes important to work in appropriate manner.
 The cost must be matched with that of competitors. It becomes necessary to match the
prices so that they are able to attain good position in market.
 The use of images is also necessary for the business. This will help them to manage the
work in appropriate manner. The customers are attracted with the photos attached in the
menu.

Produce an in-depth plan for menu development, including KPI to measure success
There is need of formulating an effective plan for menu development so that best is being
provided to the customers. There is need of following the same in order to achieve the business
objectives. First of all, the trend in the market must be analysed as it helps them to formulate the
menu is effective manner. The use of research includes analysing the menu’s drawn by the
competitors (Pareto and Willermark, 2019). The needs and wants of the customers are also
evaluated. In the next step, at the time of execution better photos and quality dished are being
included so that best results are gained. There is need of carrying the work in such a manner that
all the customers are attracted. The quality of menu and the design also plays a major role in
success of The hands and flowers. It becomes important to use the steps and then test the menu.
The KPI in the case is comparison with the competitors and the attractiveness of new customers.
In the end, if there is any gap identified. The same must be filled to attain effective position in
market.

CONCLUSION
From the above report, it has been concluded that hospitality industry is at boom at this time.
It is seen that, food and beverage is one of the important part of hospitality industry. The
customers prefer the business that provides them quality products that are provided by the
company. There is formulation of menu that helps to satisfy the needs and wants of the
customers. There is need of evaluating the menu so that the objectives of the business
organisation are attained. The realistic menu is prepared with proper clarity in order to attract the
customers. The key performance indicators to check the performance are also important part of
this report. In the end, recommendations for success of the business organisation are given.
TASK B
(ppt)