Strategic Menu Development, Planning, and Design for Profitability

This report provides an analysis of menu development, planning, and design within the hospitality industry, focusing on Delrio's Restaurant as a case study. It explores the principles of menu planning and design evaluation, emphasizing the fulfillment of customer and business requirements to maximize profits across various menu types. Key considerations for menu costing and pricing are discussed, along with methods for accurately costing and pricing menus to meet diverse customer needs. The report also analyzes different approaches to menu costing and pricing, highlighting effective methods for maximizing profitability. It includes the production of a menu based on customer requirements, its subsequent testing and evaluation, and recommendations for improving menu design and pricing strategies to enhance customer satisfaction and business outcomes. Desklib offers more solved assignments for students.

Menu Development,
Planning and Design

Contents
INTRODUCTION...........................................................................................................................3
Principles of menu planning and design evaluation...............................................................4
Fulfilment of customer and business requirements to maximise profits for a range of
different menus..........................................................................................................................5
Key consideration into account when costing and pricing menus........................................7
Produce accurately costed and priced menus to meet a range of customer requirement.. 8
Analysis of approaches to menu costing, pricing and use of effective method to determine
cost and price menus for maximisation of profitability.......................................................10
Produce a menu according to the customer requirements..................................................10
Test and evaluate the menu produced...................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Menu planning, design and development in hospitality industry of business is known as the
specific selective way by which any customer and visitor can share their perspective about the
hotel or any hospitality business. The design of menu is known as the representation which is
necessary for any hospitality industry to present in front of there customers in order to let them
known about the products and services they are providing. There are various factors which is in
mind in order to develop the menu. Pricing is the important factor that is important to take into
consideration as per there target audience and amount, they will able to pay for that specific dish.
This report is analysed about Delrio’s restaurant. This restaurant is running from 20 years and
they offer there customers home made food with affordable pricing. This restaurant has huge
customer base and they are their local customers with a huge goodwill. As this restaurant is
known for its quality of food. This report has included various principles and designs of menu
planning and this report also involves different menus and there pricing as per the customer
requirements. The analysis is described below.

Principles of menu planning and design evaluation.
Menu planning is known as the procedure of developing and deciding in an effective form as
which makes easier for the customers so that they can easily differentiate the dish they are
desired to crave. In an menu there are various dishes which is required to be segmented and
presented according to the requirements of the customers. The main activities which include in
developing the menu is involving various phases which differentiate the dish according to the
time and occasion. The menu is designed according to the type and variety of food and that is
prepared with various business operations and functions as they has been scheduled for
managing each portion and nutrition of meal with the available resources(Dorstewitz, 2022).
Types of menus
A La Carte: This menu ensures that the menu list contain each sort of nutrition and portion in an
meal with an effective costing as per the items and the analysis. This involves variety of list and
an customer can choose the dish according to there desired portion with maintaining the quality
and taste of food.
Do Jour Menu: This is the menu in which cocktails and the soups has been involves by the
hotel. This menu also offers the flexible surrounding as per the list the restaurant is offering. In
this menu everything is placed in an systematic and customised form as to manage the overall
activities in an hotel(Thamagasorn, and Pharino, 2019).
Cycle Menu: This menu is arranging in such a way that it could be change as per the daily
routine and season. This menu is also arranged as the per availability of resources in an effective
manner in order to make easy for the customers to select as per there mood or requirements.
Prix Five Menu: In this kind of menu each dish has the fixed pricing method and also has
multiple method in order to manage all the framework efficiently and effectively. These kinds of
menu are specially made for the special occasion with major food condition suggested by the
customers.
Beverage Menu: In these kinds of menus there are various list of beverages options are provided
by the hotels and restaurants. In beverages they mainly include variety of beers, cocktails and
wines for welcoming the customers and presenting this menu according to the targeted audience

who can be either a rare visitor or any local customer. In some kind of beverages menu it had
been observed the connections of cocktails and craft beers and specific drinks.
Dessert Menu: This menu involves the variety of desserts to enhance the taste of dish and to
make the experience memorable of customer. In this menu the desserts are mainly served as per
the entry list and has been distributed after the main course and this part is considered as an
important part of menu in an hospitality industry as it enhances the mood of customer. This
menu is mainly to fulfil the upscale requirements that can manage and evaluate their
segmentations in an effective manner.
As aside of this menus are also designed and customised according to the special occasions and
festivals as there are two kind of customisation in menus as one is according to the customers for
their special occasions and birthdays so they can customise the menu and dish accordingly for
their satisfaction. Another customisation of menus is done with the festival of special occasion of
Restaurant as their anniversary date and according to different festivals as dishes are added with
special discounts.
Principles of menu designing and planning:
Sort of variety: In managing the menu it is important to include various variety of dishes in
order to attract the customers so that they will to try new and innovative dish which is healthy as
well as full of taste. As if an restaurant is providing variety therefore it is important to include
details of the same which makes clear and easier for the customers to accumulate there meal
properly(Coronado, 2019).
Resources: There are various resources and components are required in order to make a dish and
present a dish in a menu. So this is important for the staff to evaluate and make available all the
essential ingredient and spices in an effective manner. These all resources help to prepare a dish
in an effective manner so that customer get obliged while consuming variety of dishes.
Seasonality: It is important to include seasonal food and products in an effective and efficient
form in order to serve their customers all the season taste and can offer better quality of
seasonable dish. Dishes has been customised an included in menus as in mango season there are
more dishes which are relates to mango as mango pudding, ice-creams and cakes as per the
customer requirement to fulfil their demand toward the dish(Saint, 2018).

Fulfilment of customer and business requirements to maximise profits for a range of
different menus.
A expanded and goodwill oriented restaurant has the capability to face their customers and
visitors as per the requirement of planning and orientation. For fulfilling the requirement of
customers, it is important to plan accordingly and for the appropriate placing of the items and
resources in an effective manner in order to get profit and to attain aim and objective. There are
various methods and techniques by which an menu can be identified and analysed as per the
demand and need of customers in order to increase the profitability and productivity level of an
restaurant. This is known as to analyse the targeted customer base and then drive all the planning
and designing of menu accordingly. As there are many segments of customers with different
demand so it is important to focus on marketing planning and then menu is been planned
accordingly. The main purpose of analysing the menu is to change with the changing trends and
the requirements of customers and make changes in the menu according to them and by the
changing environmental pricing as this is an price in which the price of fruit and vegetable
changes according to the season and availability in the market and this also get changes
according to the government policies and strategies. These methods can also help the employees
of an restaurant to plan according to the changes made(Nasrollah, Nikkhou, and Soleimanimehr,
2022). By developing these changes, it also help in increasing the productivity and profitability
level of an organisation and which benefits the employees with the increased wages and salary in
an effective manner.
Customer Requirement
Many customers feel that this is an basic and social responsibility of the hotels and restaurant to
make them introduce with there different kind of menus and dishes getting relate with there
health. This factor also determine situation of protecting the customers and visitors from the
misguiding and from fake promotion and advertisement.
Trends: Customers usually follows the basic trend as per market conditions and which also
involves variety of formation in order to deal with different kind of customers. As customers also
known about the analysis of market with the differentiation of different fields in the industry and
these trends also del with the various kind of segmentation which an organisation deal while
serving any menu in an sectional form. As with the changing trends like now a days people are

more focused on healthy food which can make a change in the ingredients and menus of
restaurant for the better revenue growth of business.
Business Requirements
The organisation is required to be secured for various substantial risk which can be occur while
managing different sections in restaurant that also known as the individual business sector. The
restaurants and hotels has the chance to enhance the implementations and business operations in
the market. Business itself has many opportunities to fix there internal and external problems.
The basic business requirements is considered as technology advancement, income rising,
increasing population and rapid urbanization(Mauguen, 2022). These factors can be solve by
segmenting and implementing proper strategies in order to increase profit of the organisation.
Staff training: In an hotel or an restaurant there should be proper training and development
should be conducted in order to develop the skills and the knowledge of employees and staff
faculty. Sectional orientation is required to be managed in order to fulfil all the requirement of
customers as well as employees working in an organisation and in an effective patterned
structure.
Recommendation: It is recommended to the restaurants that there are various option in order to
manage the work effectively and accordingly. According to the local industry requirement they
are demanded for the more sustainable pricing in order to ensure all the management and
business operations in an effective manner. The positioning also sometimes affects the customers
and visitors who are eagerly willing to serve. They usually focus on the taste, price and look of
the dish to satisfy completely. As a dish price in airport is high as compared with the direct price
of dish in the normal hotel or restaurant.
Key consideration into account when costing and pricing menus
For an hotel or restaurant it is important to arrange pricing in such a way that they can attain high
level of profitability by each dish serving in the restaurant. There are various ways to price the
menu accordingly as they can attain twice of the dish presented in front of customers. There are
many restaurants who usually focuses on the competitive market rather than pricing or attaining
profit as some only focuses on pricing and achieving there targeted goal of getting the
appropriate profitability level in comparison with the other hotels in an industry(Coutinho,
Pandey, and Pai, 2020).

Seasonal impact: Season can impact the profit as it can fluctuate the customers and helps in
increasing the profit of the business. As they can manage it in an appropriate way to deal all the
external risk of the industry. There are various kind of customer by the customers frequently visit
out for eating changes there routine as now a days fast food and excessive fat eating has become
a quick form to earn money in an industry.
Business environment policy: There are various oriented segmentation process which set the
practices and policies of each business so that they can serve eco friendly dishes in
environmental friendly things(LaCouture,2021). It is important for hospitality industry to take care
of environmental measures in order to form any kind of product and it also involves serving
plates. They should follow eco and environmentally friendly products in order to remain
sustainable in an business. They can follow many measures like start using paper straws rather
that plastic and considering waste and water wastage seriously.
Positioning: Goodwill of a business is depended upon the quality and the performance of a
business in an industry. There are various functions and ways in order to manage business
operations and functions in an effective way. This help in the long term benefit and it also help in
decision making process effectively in to accomplish the ascertained goals and objectives and
this involves setting function and procedure in an effective way.
Profit: The main focus of any business industry is to attain aims and objective of an organisation
and to earn maximum amount of profit with an competitive advantage and goodwill in the
industry. This also helps in adjusting and fulfilling different demands of customers in an
effective way which will increase the customer base of the business and will help in expanding
the business globally. This will grow the hospitality industry in an effective form with a high
profit rate.
Menu engineering matrix
Menu engineering is known as the key factor which is involved with art and science and this
secedes how a menu can be designed, priced and positions to maintain and balance the
productivity and profitability ratio of Delrio’s restaurant. It analyses the right way or method to
analyse the profitability level in order to attain maximum profit in an effective and efficient way
by menu engineering(Quinto, Landoli, and De Liddo, 2021). The manages of this restaurant
improves the customer experience by training their employees and staff faculty in an effective
manner by there politeness customer get attracted toward them. They also hardly and mainly

focus on the quality of food and their balanced portion which will also helps in increasing the
customer base of this restaurant.
Produce accurately costed and priced menus to meet a range of customer requirement.
The ratio in between the cost of producing and the management in order to cover the orientation
of raw materials which is required to make a dish and the cost which can be gained by that
specific dish(Ruge Castro, 2021). By looking into the cash flow analysis of Delrio’s restaurant it
shows all the balanced budget which can be used as the resources in the for of raw material,
newest technology and equipment tool in an effective manner as per the targeted audience which
is segmented.
1 2 3 4 5 6 7 8 9 10
Menu Sold Price Portion
Cost Cost % Portion Total Sales Total
Cost
Total
C.M. C.M.%
olive 18 5.28 1.76 25% 3.69 75.75 12.90 52.45 1%
Antipas 19 8.45 2.59 33% 5.32 94.00 35.35 65.35 2%
Bresaol 42 8.55 2.64 39% 5.21 303.75 124.19 129.56 12%
Marghe
rita 15 8.65 2.69 32% 5.83 112.00 23.30 92.60 3%
Vegetar
iana 20 11.5 6.27 21% 6.43 241.00 73.53 122.46 5%
Tagliat
elle 78 21.5 3.19 33% 7.53 756.50 237.25 562.25 22%
Lasagn
a 35 16.35 4.20 80% 8.05 236.00 160.40 265.60 10%
Granchi 20 16.52 7.18 46% 8.10 2.30 192.70 106.80 5%
Scampi
e 15 29.5 4.56 20% 16.22 321.60 82.53 878.57 11%
Filetto 21 52.85 3.75 21% 19.91 478.00 112.75 332.25 10%

Costata 15 21.59 5.42 17% 15.03 256.32 67.74 268.41 2%
gorganz
ola 18 3.32 0.67 27% 9.58 57.85 12.34 42.64 4%
All’agli 10 3.24 1.20 30% 1.85 42.00 10.80 21.20 2%
Insalata 15 3.96 1.28 33% 1.32 78.07 28.26 47.62 3%
Spinaci
saltati 12 3.10 1.30 38% 2.75 58.60 15.60 36.80 1%
Risa 19 2.85 1.06 32% 1.52 34.20 16.20 22.53 2%
Total 342 3664.52 1231.12 2323.43 100%
This is an cash inflow of the restaurant and this is describing the items of the menus and there
sold quantity and the pricing of the same. After this it has described the item’s portion cost which
can customer is consuming and this the actual cost which is placing on an order. After this it is
also describing the total sales and there total cost of the menu product effectively and lastly C.M
is calculated is calculated according to the rest numbers.
Analysis of approaches to menu costing, pricing and use of effective method to determine
cost and price menus for maximisation of profitability.
In relation with the costing and pricing of menu it is observed that there are various kind of
products which has different costing as per these usage of resources in the business. In order to
find the exact price of each dish it is important to use various strategies and techniques which
can make better, affordable and innovative changes in the menu of the restaurant as per the loyal
customer base and the targeted audience. As this also makes the restaurant more popular and
help in expanding it globally and it also increases the goodwill of the business which gives them
a competitive advantage(Botchwey, and Umemoto, 2020). As beside pricing element it is important
for the business that customer taste each dish in order to increase the customer base of each dish.
This also increase the goodwill of the business in the market. This also develops the systematic
structure which balances the price of each dish in an effective manner.

Produce a menu according to the customer requirements.
Delrio’s restaurant
Items Price
Starters and Appetisers
Pane e olive £ 9.95
Antipasto del contadino £ 9.25
Bresaola al carpaccio £ 9.95
Pizza
Margherita £ 5.65
Vegetariana £ 30.50
Pasta and rice dishes
Tagliatelle carbonara £ 20.50
Lasagna tradizionale £ 12.75
Main course fish dishes
Granchio fresco
Main Course £ 12.25
Scampi e gamberoni alla Catalana Main Course £ 29.50
Char-grilled dishes

Filetto di manzo £ 12.95
Costata di manzo £ 11.95
Home-made sauce
Al gorganzola £ 5.25
All’aglio £ 4.25
Side orders
Insalata mista £ 5.95
Spinaci saltati £ 2.75
Riso £ 5.95
The main aim and objective to develop a menu is to attain maximum profit in a business. This
can be analysed or can be evaluated by attaining profit and goodwill in the market to remain
sustainable in the business(Okumus, 2020). This is done in order to manage and balance the
profitability level of the business as refreshed and innovative menu is required by the customers
in order to satisfy fully and menu can be an effective manner in order to gain profit and maintain
the food cost which also be done by effective business functions and operations and customers
also get fully satisfied by this method and with effective strategies. Menus usually consider as
the choice which manages and helps in achieving various targets of business at different
perspectives. In the development of menu It is required to focus on customer requirement for the