Menu Planning and Product Development: A Comprehensive Analysis Report

This report delves into the intricacies of menu planning and product development within the hospitality sector, focusing on the case of Prezzo, an Italian restaurant. The report begins by outlining the key factors and principles that influence menu planning, including customer preferences, lifestyle, resource availability, and competitor strategies. It then explores the stages of menu product development, emphasizing the importance of market research, environmental scanning, and feasibility studies. The report also examines various food service methods, such as Family style, Buffet, and Gueridon Service, evaluating their advantages and disadvantages. Furthermore, the report analyzes Prezzo's decision to introduce a Chinese-Italian fusion food product, detailing the factors considered and the steps involved in the development process. Finally, the report offers recommendations and suggestions based on the research findings, providing valuable insights for menu planning and product development in the food industry.

Menu Planning and Product
Development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
AC1.1 factor and principles affecting menu planning ...........................................................1
AC1.2 Factor affecting menu planning .................................................................................3
AC1.3 Element impacts food service method........................................................................4
Gueridon Service.............................................................................................................................5
AC2.1 stages of developing menu product ............................................................................7
AC2.2 factor affecting Menu development process .............................................................8
TASK 2............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Menu planning is process of organising the food ingredients, nutrition, serving style and
pricing to make product healthy and competitive fit. Present report will articulate the factor and
principle regarding food planning along with service method decisions. Study also render
understanding food menu development process and elements that hinder and faster the
development process. Also, justification will be given for menu decision taken by prazzo, menu
design and development process. Lastly recommendation and suggestion will be made upon
research and its finding. Reports will put light on new product “ Chinese- Italian fusion food”
and its making. Prazzo is a famous Italian restaurant which offer casual dining service to its
customer. It offers product like bubbling pizzas, classic Tiramisu, pasta and bruschetta to it's
guest.
TASK 1
AC1.1 factor and principles affecting menu planning
Hospitality industry is considers as one of the most dynamic sector thus, it required to
adapt changes as soon as possible to sustain market share and customer satisfaction. Prezzo
decided to combine Italian and Chinese food altogether as its new product. Some factor are as
follows:
Customer preference
All consumers have different tradition, believe, religion, food habits which impact their
food decisions. These factor influence restaurant owner to update their menu, otherwise people
will accept the food which can hurt sale.
Life style
Income level, age group, awareness, status and occupation impact the recipe
development. For instance high income and aware people chaoses healthy and nutritious food.
Resources Availability
Food planning highly depends upon season, environment, labour and transportation,
therefore manager's meal planing also influenced by raw material procurement (Abbey, Wright
and Capra, 2015).
Time
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Nowadays hostility industry become costumer friendly so manager now consider “
Leasuire time of customer” in meal designing. For instance guest who have engaged schedule
prefers fast preparations' food and vice versa.
Competitor
Restaurant has to add on or change the ingredient, service delivery mode according to its
revelry's strategies because in this business, consumer will easily switch from one to another
food provider.
Other factor
Sometimes government also change the rules, regulation and compliance for industry for
public health interest. For instance Health Menu Choices Act, instruct Calories
And nutrition in food. Also, food chain should render all allergic warning, ingredients and
process information on food packet.
Globalisation-
Globalisation indirectly impact the food industry. For instance people migrate from one
place to another place for employment purpose, but mostly their food choice remain same as
mother country (Linassi, Alberton and Marinho,2016). In such case try to bring fusion food.
ALL the factor given above are relevant to food industry because these elements are
close to customer, and Communal only satisfies its guest only when they successfully target the
taste, quality and other need of the people.
Advantage of the change
Any alternation, modification and correction attract the people as this change bring
quality in product and service. Food organisation also can improve its reputation in market by
giving quality food. Competitor advantage can be earn when manager successfully identifies and
meet the guest need, lastly customer sanitisation will reach to its top as new concept are build
upon market research.
Disadvantage of the change
New product and concept launching is highly depends upon accurate market information,
continuous observation and market conditions (Gordon and Brezinski, 2016). And, these
dimensions are dynamic in nature so, food chains has to frequently change their operation.
Frequent changes are costly and time taking step. In case of wrong interpretation and information
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whole product development can lead to disaster of company, also prazzo can looses it current
market share, reputation and profitability.
Food planning principle
Cooking Overture-
New recipe should be made by following some standard steps in order to maintain
quality of product. These steps are- Simmering, grilling and broiling.
Taste and quality-
Quality and taste play important role in making buying decision by guest. If new food
outcome fail to maintain taste and quality expectation of people. They can lose their interest in
restaurants and discontinue the relation will hotel (Seyitoglu, 2017).
Instauration
New formula should have some product differentiation quality. And this differentiation
can be achieve by creativity because only it can help in attract the consumers.
Ascertaining aliment:
New food concept and meal should have more nutrition in compare of its older version.
Principle suggest food manager to look upon add more nutrition as food prepare of public so
healthy safety must be prime concern.
AC1.2 Factor affecting menu planning
Manager opt service and product which at-least able to meet some minimum and
expected requirement of customer. Prazzo manager also make change of dish appearance, hotel
set up according to these factor. Following are factor taken into account by manager for new
fusion food product line:
Quality- manager has to make effort to maintain the quality of the foo product as it can
directly impact the market profitability and guest health. In order to maintain quality prazzro
manager take help of TQM, Kizen and lean manufacturing in food preparation method. Also,
quality is check by leader on periodic basis with help variance analyse, ratio analysis,
income and sale reports (Agarwal and Dahm, 2015). Prazzo is committed to render food as
per the food hygiene regulation 2006 and Health Menu Choices Act. Leader also take
corrective action as soon as possible when they find any fault.
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Pricing: manager has to set price that is acceptable for both customer and organisation. High
price lead to customer switch and lower price questions the quality of food. In case of fusion
food manager should put a higher rate (not so high) to new dish, so that it put psychological
impact on guest. Leader should force customer to thing about “ who this dish has high
pricing, lets try it once”.
Service style: service style decision is related to how guest will receive their order i.e.
whether the have full flexibility to serve food by their own or by hotel staff (Davis and et al.,
2018). As Chinese- Italian food is very complex combination so, manager should try
Gueridon Style. In this service style people get to know restaurant make this combination
seamlessly.
Decor- décor comprise both food decoration and restaurant set up. Here, manager should
garnish and decorate the food which represent both food culture. Also, manager can add on
history of both food on walls.
AC1.3 Element impacts food service method
Manager has to consider multiple dimension to design method of food service like cost,
skill of personnel, available space, customer turnover rate, nature of target people, pricing policy
of organization, awareness, education level information requirement of etc. following are the
most popular dining method uses by menu restaurants.
Family style-
It represents the traditional way of service food, in which food is served in platters and
served by customer themselves (Young and et al., 2018). They also receive Butler assistance
which helps them in serving the food smoothly.
Disadvantage of Family style
 Lots of dishes and food option present to guest can cause of messy food arrangement.
 Cost of food can be increase gradually as high customer flow required more chefs and
waiters.
Advantage of family style
 It allows direct interaction with restaurant staff and guest, which help personnel to
receive feedback and suggestion at the time of food consumption.
 Customer can know everything about dish and its preparation from its makers.
 It enables butlers to create friendly, comfortable and elegant environment.
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Buffet
Food being served on banquet tables, chafing dish and glass platters and , consumer walk
around the food table to select their preferred food. In case Clint need kind of help, they are
entertained by waiter standing alongside.
Advantage of Buffet
 Style renders high level of satisfaction as people choose what they want with external
burden and hesitation in less waiting time.
 This style required less space to set up, which lower the cost of food too.
 Variety of food can be served like different cuisines, veg and non veg option and variety
of food preference (Chandler and Chen, 2016).
 It permits manager to use creativity in presentation, therefore it is able to attract the guest
by look of the food.
Disadvantage of Buffet
 High chance of food wastage.
 This style is unable to handle high Clint flow because of limited tables.
 Physical disable people, children and less aware consumers are not able to serve food for
themselves.
 Less control of manager on any dysfunctional activity and wastage.
Gueridon Service
It is almost same as family style of service, but there is only difference is there, that food
is prepared on trolley at the side of consumer. Trolley is furnished with gas, electricity, burner
and cold drawer.
Advantage of Gueridon Service
 It maintains high level of transparency in food making process, which help in enhance
trust on restaurants. It is most suitable style nowadays as people become more health
conscious and they want to know ingredient and process being used to prepare their meal.
 Guest collect high personal attention ( Jung and Yoon, 2016).
 Enable staff to show their creativity and skill, which also help restaurants to charge extra
for royal treatment.
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(Sources: Char Char – Gueridon Style, 2017)
Disadvantage of Gueridon Service style
 Process required high level of skill, experience and knowledge in chefs and Butler.
 Trolley need more space which can reduce the seating space.
 Food preparing process can turned into dangerous, Like threat of fire.
 Guest has to wait more. Also, prices of the product would be high due to professional
hiring and expensive utensils and equipment.
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Illustration 1: Gueridon Service style

AC2.1 stages of developing menu product
First and foremost step conduct by Prezzo manager is to conduct market research to know
customer preference, market trend, opportunity, threat, competitor strategy, resource location
decision. Manager takes decision like Food preparation method and Types of menu on the basis
of these research. After it manager practice environment scanning to know factor that an affect
Menu like legal, political, environmental, economical, technical, competitor and customer
characteristic. Service style also examine by manager on the base of above information and
capacity of organisation (Lavis and et al., 2015). Even manager also uses break even analysis,
profitability and Business analysis, Value analysis, estimation of product cost, prince and
demands etc. in case manager find more favourable condition and optimum resource available
for new product they start to make product.
Prezzo never offer new food to consumer before proper testing. And, for testing purpose
it offers food to staff, higher authorities. after getting the positive response from internal
stakeholder, this Restaurant company offer food to its end customer.
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Internal and external audit for product
Develop the menu
Technical trial
Final menu

Prazzo manager find opportunity to bring Chinese and Italian food together because of higher
migration and tourism inflow from china. Also, Chinese food now getting the popularity from
last one decay. Some prime concerns of manager is given below in bring innovation:
Sales Mix:
Sales mix comprises all the product offer by organisation to its customer. Manager use
sale mix to set price for the product because it directly affects the revenue (Seyitoğlu, 2016). For
instance Prazzo now plan to add new line of fusion food therefore manager set the price so that it
can earn enough sale.
Competitor activity:
Prazzo also affected by its competitor production and marketing efforts. Like what price,
ingredient, service style method, complimentary service, décor, location uses by its reveries. For
instance restaurant can not charge high price from Clint for the same thing served by competitor
in less price.
Feasibility studies
Feasibility analyze give answer about whether new product idea will render benefit for
company or product have technical, market, legal, financial feasibility for organization. For this
purpose firm uses PESTLE and Porter five force (Filimonau and Krivcova, 2017). For instance
manager should leave the idea of Chinese food in case of higher cost of Chinese food raw
material and higher salary demand by chef to make the product because it will lower the profit
margin.
AC2.2 factor affecting Menu development process
There are so many facto which can impact the taken decision of manager, like social,
geographical, technological, environmental, economical etc. these factor are discussed below:
Social factor: culture, believe, religious practice, education level, skills, Lifestyles, buying style,
leisure time, socio status and Health consciousness are some critical element that can influence
the food preference (Oraman and et al., 2018). For instance prazzo manager can face issue in
acquiring chef and Chinese butler as Uk people are less awareness about preparing the food.
Also, restaurants has added more nutrition in food as UK peoples currently facing serious
lifestyle disease.
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Economic factor:
Economic factor include disposable income level, interest rate, tax rate. Prazzo manager
has to set low prize in depressive economical phase as customer avoid making luxury expenses
in this phase. Apart from it high food tax rate can lower the profit margin of product and service.
Domestic factor:
Domestic factor like consumer living standard, their opinion for Chinese food, religion
and perception for fusion food will definitely impact the sale of new product launch by manager.
Skill of staff:
Chef's desire and learning power can influences product quality. Also, their experience,
knowledge and skill helps in make the product as it should be (Ravindran and Jaiswal, 2016). For
instance an experience butler will can easily understand the taste requirement for Chinese- Italian
fusion food.
TASK 2
(Enclosed in PPT)
CONCLUSION
From the above study it has been concluded that menu planning is systematic process that
guides manager to design food as per the customer requirement, need, preference and choice. But
menu planning can only be success when manager get correct information on right time.
Environmental scanning assist manager to take decision regarding raw material procurement
decision, pricing, nutrition decision, marketing efforts and service delivery method. Every food
service style has its pros and cons which should be taken into account very serious because new
product launching demands change at every level of restaurant not in piecemeal.
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