Menu Planning, Design, and Development: Pasco Cafe Report

This report provides a comprehensive analysis of the menu planning, development, and design for Pasco Cafe. It delves into key considerations such as cost-to-profit ratios, recipe costing, and the impact of location and customer segments on menu pricing. The report examines various pricing method...Read More

DEVELOPMENT,
PLANNING AND
DESIGN

Table of Content
 INTRODUCTION
 KEY COSIDERATIONS IN PRICING AND COSTING OF MENUS
 ACCURATEKY PRICED ANDCOSTED MENU
 CONCLUSION
 REFRENCES

INTRODUCTION
 Menu development and planning is very essential process of analysing needs and wants
of customers to satisfy them.
 Hospitality industry is changing rapidly and demand of eateries are increasing. This
report has a brief information about menu planning and designing of Pasco Cafe to
increase customer base and satisfy existing customers effectively.
 Report covers process of menu planning according to customers and business
requirements.
 Impact of customers of menu planning to enhance quality of products and services
effectively.

Key Considerations in
Pricing and Costing of
Menus

Cost-to-profit ratios
 Pasco cafe need to estimate their cost of producing dishes according to
expected revenue generations from the products listed in menu.
 This help cafe to understand the total cost which is incurred to plan and design menu.
This also help to evaluate pricing of menu effectively.

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Cost of Recipe
 Pasco need to analyse the cost of recipe which fulfil the needs and preferences of
customers according to market trends.
 Innovative recipes are more likeable and expects better menu pricing.
 It is the cost of experimenting change in dish which can lead to increase in price of that
dish to generate more revenue.

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Cost of dish
 Dish consists of different ingredients which also individually cost some amount (Linassi,
Alberton and Marinho, 2016).
 Cafe need to determine the all cost which are hidden like using of electricity, labour, raw
materials to produce particular dish.
 The overall cost with addition of profit margins will decide price of menu of Pasco Cafe.

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Location
 Pasco has advantage in location to increase pricing of products in menu as cafe is
located near railway station and offices this helps to increase opportunities to improve
quality and attract more customers.
 Location also increase willingness to pay and helps to increase the profitability of Cafe
to grow and expand its business effectively.

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Customer Segments
 Pasco has segmented its customers on basis of income level, personality and age which
helps them to determine quality and type of products.
 These factors are taken into consideration while deciding prices of menu to increase
profit margins and attract new customers as well.

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Pricing Method and Approaches
 Pasco need to consider the methods of pricing to increase profits and customer base (Lo, King
and Mackenzie, 2017).
 Pasco need to analyse the cost of each and every raw materials available to use alternatives to
balance high cost ingredients with low cost ingredient and reduce price and increase customer
satisfaction.
 Cafe also considers cost of employees as it impact revenue of business.

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Sales
 To determine the effective pricing of products to gain better profit
margins Pasco Cafe analyses products which has the highest sales to
increase their prices in menu and lower the prices on non moving
products from menu.

Accurately Priced and
Costed Menu

 Starters
 Starters are the small quantity of food which is provided to customers while the main
course is being prepared.
 Small quantity of food is offered to customers to reduce their waiting time. For
example, Minestrone Soup, Smoked Salmon.

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Main Course
 It is the main dish which is served to customers according to their tastes and
preferences.
 Main course is a combination of different dishes which mixed to increase quality of
food and satisfy customers.
 For example, Stew and Casserole, Curry, Pizza, Savoury pies and tarts.

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Desserts
 Bakewell tart, Brandy snaps, Bird's custard are desserts which is provided after dinner
to increase the after-taste and develop enhanced experience of restaurant.

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Proportions of the main component of dish
 Pasco Cafe charges £100 for a one meal which include starters, main course and
desserts.
 Cafe have analysed that per dish cost is £50 which helps Cafe to increase profit
margins. They also provide more quantity in meal then ordering separately.

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Sales mix and the balance of price and offers
 Pasco cafe analyses that parson pastry and roasted turkey are the maximum selling
product and contributes the most in menu to increase profit margins (Leib and et.al.,
2018).
 Cafe provides effective offer and discounts to existing and new customers on other
dishes to balance the prices of meals of menu and gain better profitability.

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Identifying the main sources of revenue from the menu
 Pasco have analysed that 50 percent revenue is generated from the starters and desserts.
 This helped cafe to innovate menu to introduce new dishes due to location maximum
customers needs fast food.

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Staffing costs associated with the production of menu items
 Pasco analysed cost of innovating and experimenting new products has increase the
prices of every dish by £50 and improved the quality of food to satisfy customer
effectively.

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Cost-to-profit margin ratios
 Cafe has analysed that total margins is about 25 percent and also help to increase the
growth effectively.

CONCLUSION
 This report had a brief study about menu planning, development and designing of
Pasco cafe to increase its customer base.
 Report analysed effectively principles which helps in menu designing and planning.
Report also highlighted about key considerations which impacted decision-making of
Cafe to facilitate growth in market.
 This report concludes that Pasco cafe increases the efficiency of its menu by improving
the skills and knowledge of employees and providing satisfaction to customers.

REFERENCES
 Buisman, M.E and et.al., 2019. Donation management for menu
planning at soup kitchens. European Journal of Operational
Research. 272(1). pp.324-338.
 Dias, R., Ng, S.C. and Hussin, N., 2016. A Hybrid Framework for
Restaurant Recommender System. International Journal of Scientific
Engineering and Technology. 5(12). pp.546-548.
 Filimonau, V. and Krivcova, M., 2017. Restaurant menu design and
more responsible consumer food choice: An exploratory study of
managerial perceptions. Journal of cleaner production. 143. pp.516-
527.

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