Costing and Pricing Strategies for Pasco Cafe's Menu

This report provides a comprehensive analysis of menu development, planning, and design, with a specific focus on costing and pricing strategies for Pasco Cafe. The report delves into key considerations such as supply costs, wages, and economic factors influencing menu pricing. It explores various aspects of costing, including food cost proportions, sales mix, and the importance of balancing the menu to achieve revenue targets. The report also highlights the significance of sustainable energy sources, staffing costs, and the cost-to-profit margin ratio. Furthermore, it provides insights into accurately pricing dishes to achieve desired profit margins, emphasizing the importance of menu design and customer attraction for profitability. The report concludes by summarizing the key takeaways and emphasizing the importance of strategic menu planning for the success of cafes and restaurants.

MENU
DEVELOPMENT,
PLANNING AND
DESIGN

TABLE OF CONTENT
• INTRODUCTION
• COSTING AND PRICING MENUS KEY CONSIDERATIONS WHICH NEEDS TO BE
TAKEN
• COSTING PRICE MENU
• CONCLUSION
• REFERENCES

P3 Costing and Pricing Menus Key Considerations Which Needs
To Be Taken
• There are a lot of factors which have to be considered when there is a
requirement of making menu for Pasco Cafe and the pricing does make
an immense difference in it.
• There is a lot of supplies which are got for producing the products that
has to be considered and the wages which are being paid to them also
have to be considered because it is after paying the wages to employees
the cafe still should be able to make a profit is what Pasco should
consider while making menu.

CONTINUE…
• . The pricing and costing of products will not just depend on customers but the cafe economic
environment as well.
• Prediction must be made by Pasco and the decisions for the pricing and cost must be realistic in
nature so that the planning will be better for them.
• There are more factors which influence the pricing of menu for the cafe and restaurant which
are the inventory and equipment's which are being used in cafe are also affecting the menu.

CONTINUE…
• Seasonal factors are affecting the menu printing because there are a lot of products which are
not present throughout the year which have to be considered so that they can have a proper
functioning and attract the right customers in the restaurant and cafe.
• Economic environment of the company will also make a lot of difference in the organization
because they will have to consider all the economic investment and the economic wages which
they will be giving to the employees have to be considered while pricing the products in menu.

P4 Costing Price Menu
Food cost Proportions
• It is very important for having a set price for the
products so that there is a better functioning in Cafe.
There are supplies, ingredients, production, services and
staffing which can to be included when a product is
being priced for the generation of revenue for Pasco
Cafe.
• The formula which will be used for finding out the food
cost proportion is going to be food cost percentage is
equal to selling price divided by portion cost.

CONTINUE…
Sales Mix
• Selling price of the cafe can be determined by using the
following formula. Cost mark-up has to be higher than
the cost of goods and labour so that the cafe can get
profit.
• Calculating selling price would require to multiply
portion cost by cost mark-up.

CONTINUE…
Main Source of Revenue
• Balancing the menu to achieve targets so that they can make revenue which is more profitable
than the production and wages which the cafe has to give. POS system stands for point of sales
system which is the purchases which are being made from time and place from where the
transaction is being completed. Raw material and supplies also have to be considered so that
they can make a profit accordingly.

CONTINUE…
Sustainable energy sources
• Pasco Cafe must find measures for themselves through which they can have cost saving for a
long run in market.
• Methods like solar panels can be installed so that the electricity bills can be reduced for long
run.
• Kitchen garden can be produced in the backyard so that they can produce their own vegetables.

CONTINUE…
• Staffing Cost
• It is very important not to have more staff than required and the wages also have to be set for
them so that cafe can make profits accordingly and price products in the cafe according to
them.
• For calculating staffing cost is equals to sales divided by the number of employees.

CONTINUE…
Cost- to- profit margin ratio
• This help the cafe to understand the profit they have got after all wages and
investment they have done for serving customers right.
• Cost- to- profit is going to be calculated by dividing profit with cost.