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 methods and their impact on sales, alongside the importance of accurately priced and costed menus, including starters, main courses, and desserts. It further explores revenue sources, staffing costs, and cost-to-profit margins, offering a detailed overview of how Pasco Cafe aims to enhance its customer base and achieve effective growth through strategic menu management. The report concludes by emphasizing the significance of employee skills and customer satisfaction in optimizing the cafe's menu efficiency.

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