Menu Development, Planning and Design: A Cafe Cost Analysis Report

This report provides an analysis of menu development, planning, and design within the context of a cafe. It begins with an introduction to menu development, emphasizing its importance as a marketing tool. The report then outlines key considerations for pricing and costing, including the cost-to-profit ratio, energy costs, staff costs, environmental policies, economic factors such as inflation and disposable income, and the cost of raw materials. The impact of seasonality on menu costs is also addressed. The report includes detailed menu cost calculations for both food and beverages, showing the total food cost, contribution margin, and percentage, along with the total sales and menu price. The analysis includes calculations for individual menu items, offering insights into portion costs and contribution margins. The conclusion emphasizes the importance of cost and pricing strategies for maintaining profitability and highlights the need for appropriate evaluation of factors affecting business costs to achieve sustainability. References to relevant academic sources are also provided.

Menu Development, Planning and
design

Introduction
 Menu development is defined as the process of selecting and designing
offer that food industry operators provides to their targeted consumers.
It is termed as one of the important marketing plan that operators of
food industry adopts in order to attract new consumers by retaining old
at the same time.

Key Consideration
 Certain key consideration taken into accounting for pricing and costing
of dishes are as follows-
 Cost-to-profit Ratio
 Cost of energy
 Cost of Staff

Impact of environmental policies
 Current economic climate: Rate of inflation, interest rate and
disposable income are some of the economic factors that affects pricing
and costing of the products in Cafe.
 Cost of product: Raw materials cost is included in the final products
and this helps into define cost of final product offered. Change in cost
must be considered while prising of dishes.

Impact of seasonality restrictions on menu costs
calculations
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.%
Tofu and
cheese
Sandwich 12 £10.95 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Pasco Veg.
Pizza 8 £11.95 £4.25 36.00% £7.70 £95.60 £34.00 £61.60 15.00%
Grilled
Veggie
Sandwich 10 £6.95 £3.75 31.00% £8.20 £69.5 £21.5 £48 20.00%
Veg Burger 5 £10.95 £3.50 32.00% £7.45 £54.75 £17.5 £37.25 9.00%
Crisps 4 £14.95 £5.25 35.00% £9.70 £59.80 £21.00 £38.80 9.00%
Baked
Mushroom 6 £12.95 £4.00 31.00% £8.95 £77.70 £24.00 £53.70 13.00%
Potato
French fries 5 £15.95 £7.25 45.00% £8.70 £79.75 36.25 £43.50 10.00%
Totals 50 £568.5 £151 £337.75

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

Conclusion
 From the above presentation it has been concluded that cost and pricing
strategy for business helps in maintain required amount of profits. The
presentation provides key considerations to all that factors affects
prising and costing of business. Evaluation of these factors needs to be
made appropriately so that sustainability can be achieved.

References
 Wood, A. E. and Mattson, C. A., 2016. Design for the developing
world: Common pitfalls and how to avoid them. Journal of Mechanical
Design. 138(3).
 Ziervogel, G., Cowen, A. and Ziniades, J., 2016. Moving from adaptive
to transformative capacity: Building foundations for inclusive, thriving,
and regenerative urban settlements. Sustainability. 8(9). p.955.