Menu Development Report: Pricing, Cost Analysis, and Design

This report provides a comprehensive analysis of menu development, focusing on the critical considerations of pricing and cost analysis. It examines how revenue, business environmental policies, economic climates, and seasonality impact menu design and pricing decisions. The report includes a detailed breakdown of factors influencing menu pricing, emphasizing the importance of aligning costs with revenue generation. The report also provides a sample menu analysis, including calculations for portion costs, total food sales, and cost percentages for various menu items and beverages. Finally, the report highlights the importance of considering competitors, seasonality, and economic impacts when making menu development decisions to attract and retain customers. The report concludes by emphasizing the significance of maintaining food quality and offering healthy options to customers.

MENU DEVELOPMENT

TABLE OF CONTENT
• INTRODUCTION
• Assess consideration which need to be considered when pricing and setting cost
• Accurate design of menu with prices
• CONCLUSION

INTRODUCTION
Menu is a list where there are different variety
of food items are mentioned with prices which
help customers to identify individual meal with
prices. It is design in a particular way where
individual item also have different variety and
in menu there are some special dish which is
introduced by restaurant. In another menu card
the list of beverages are also available with set
prices that will be served to customer.

ASSESS CONSIDERATION WHICH NEED TO BE
CONSIDERED WHEN PRICING AND SETTING COST
Pricing and cost is the main
factor which affect the decision
when designing menu to attract
new customers and retain the
interest of existing customers.
There are some other factors
which should be consider when
designing menu which are
describe below:

IMPACT OF COST AND REVENUE
Revenue refers to sales which is made by serving
or selling food items to customers. These revenue
is derived after reducing all expenses and cost
incurred by preparing food as this help
organisation to set their menu cost after analysing
all expenses involved from manufacturing food
to serving to their customers. In context to Park
Grill restaurant when planning menu they should
analyse all cost such as online orders, packed
goods and many more.

BUSINESS ENVIRONMENTAL POLICIES
This affect the prices of menu
in restaurant but every business
have their own policies which
help to minimise impact of
environment. Park grill
restaurant can adopt corporate
social responsibility activities.
They can also use sound
transport strategy.

ECONOMIC CLIMATE
It refers to the change in prices of food
items in menu so they have to print new
menu which includes a lot cost. Every
restaurant cut or increase prices as per
demand, economic conditions and
fluctuation in raw material for preparing
food. In relation to Park Grill restaurant,
they have to analyse situation for
changing economic conditions as this
help them to attract customers.

IMPACT OF SEASONALITY
This factor influence when
planning new menu as the
trend, need and demand
changes regularly in business
environment. So, to remain
competitive in market Park
grill restaurant have to adopt
changes as when required. The
changes such as cold and hot
drinks, seasonal foods etc.

ACCURATE DESIGN OF MENU WITH PRICES
A B C D E F G H I J
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.%
Park grill mix 11 12 2.88 24% 9.12 132.00 31.68 100.32 21%
Adana kebab 9 10.7 3.75 35% 6.96 96.30 33.71 62.60 13%
Avovado
mozzarella
and salad
9 11.1 3.22 29% 7.88 99.90 28.97 70.93 15%
Veg burger 6 9.02 2.98 33% 6.04 54.12 17.86 36.26 8%
Sea food
pasta 5 17.95 6.10 34% 11.85 89.75 30.52 59.24 13%
Park grill red
pasta 7 12.12 3.64 30% 8.48 84.84 25.45 59.39 13%
Warm walnut
cheese salad 8 10.95 4.38 40% 6.57 87.60 35.04 52.56 11%
Cheese
sandwich 4 13.32 5.86 44% 7.46 53.28 23.44 29.84 6%
Totals 59 697.79 226.6658 471.1242 100%

CONTINUE…
A B C D E F G H I J
Item Total
Sold
Menu
Price
Portion Cost Food
Cost %
Portion C.M. Total Food
Sales
Total Food Cost Total C.M. C.M.%
Hot chocolate 31 5.25 1.79 34% 3.47 162.75 55.34 107.42 4%
Cappuccino 211 6.75 2.23 33% 4.52 1424.25 470.00 954.25 38%
Raspberry lemonade 71 6 1.80 30% 4.20 426.00 127.80 298.20 12%
Apple Juice 19 7.25 1.96 27% 5.29 137.75 37.19 100.56 4%
Pinot grigio blush 78 6.65 1.86 28% 4.79 518.70 145.24 373.46 15%
Tea 129 7.5 2.18 29% 5.33 967.50 280.58 686.93 27%
Coke
Total 539 ACM = 27.593 3636.95 1116.141 2520.8

CONCLUSION
From the above discussion from presentation, it is identified that while developing menu restaurant
should consider various factors which help them to attract new and existing customers. This factors
include competitors, seasonality and economic impact. From this they can easily maintain their
quality and can serve healthy foods to their customers.

REFERENCES
• Collins, W., Parrish, K. and Gibson Jr, G.E., 2017. Development of a project scope definition and assessment tool for small
industrial construction projects. Journal of management in engineering, 33(4), p.04017015.
• Grady, A., Wolfenden, L., Rissel, C., Green, S., Reilly, K. and Yoong, S.L., 2019. Effectiveness of a dissemination strategy
on the uptake of an online menu planning program: A controlled trial. Health Promotion Journal of Australia, 30, pp.20-25.
• Noone, B.M. and Cachia, G., 2020. Menu engineering re-engineered: Accounting for menu item substitutes in pricing and
menu placement decisions. International Journal of Hospitality Management, 87, p.102504.
• PUSIRAN, A.K., JANIN, Y., MARZUKI, K.M. and BOONYANMETHAPORN, W., 2021. Food Culture Integration in
Menu Plan for a Sustainable Homestay Business. Journal of Environmental Management and Tourism, 12(1), pp.258-265.
• VanTassel-Baska, J. and Baska, A., 2019. Curriculum planning and instructional design for gifted learners. Sourcebooks,
Inc.