Menu Planning and Design Report: Pasco Cafe, Unit 21

This report focuses on the menu development, planning, and design for Pasco Cafe, aiming to enhance customer satisfaction and profitability. The report covers essential principles of menu planning, including variety, balance, flexibility, and truthfulness, while also considering customer and business requirements for different menu types like static, A la Carte, and beverage menus. Key considerations in pricing and costing are explored, such as cost-to-profit ratios, recipe costs, and customer segmentation. The report provides a realistic plan for menu development, including objectives to analyze market trends, increase customer satisfaction, and leverage new technologies. The report proposes a new menu to maximize profitability, featuring items like pizza, burgers, and pasta. The report concludes with a discussion on testing and evaluation methods, including KPIs and benchmarking, to assess the effectiveness of the menu changes.

UNIT 21 - MENU
DEVELOPMENT,
PLANNING AND DESIGN

Table of Content
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Principles of Menu Planning and Designing According to Customers and Business
Requirements...............................................................................................................................1
P2. Customer and Business Requirements In Different Menus...................................................2
LO2..................................................................................................................................................3
P3. Key Considerations in Pricing and Costing of Menus...........................................................3
P4. Accurately Priced and Costed Menu ....................................................................................4
LO 3.................................................................................................................................................7
P5. Realistic Plan to Develop Menu............................................................................................7
P6. Menu to Maximize Profitability of Pasco Cafe.....................................................................7
P7. Test and Evaluation...............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

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.
LO 1
P1. Principles of Menu Planning and Designing According to Customers and Business
Requirements
Menu planning and designing is very important as menu are the drivers of food and
beverage industry. Menu provides brief description about all the products which are available to
customers. Pasco cafe need to analyse needs and wants of customers to increase quality of
products and change prices accordingly (Dias, Ng and Hussin, 2016). Meal planning is
extension of menu planning which differentiates different dishes according to customers and
situation.
Menu planning and designing helps Pasco Cafe to analyse prices of dishes to decrease
cost and improve profit margins.
Variety
Variety is the first principle which a business need to consider in menu planning and
designing and which helps to understand pricing values of products offered to customers. Pasco
cafe need to examine their menu products which can be provided to customers according to their
need and wants. Cafe also need to analyse page positioning and category placements while
designing menu to increase satisfaction of customers. Pasco Cafe analyses customers need dishes
according to occasions. Customer expect to have a menu which is based on disease condition of
customers and have proper nutritional value as promised. For example, static menu and Du Jour
Menu and innovate new dishes and attract more customers.
Balance
Pasco cafe has to analyse while menu planning and designing, nutritional values of each
product and mention it in menu. Cafe also need to ensure the quantity of food which can satisfy
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customers effectively. Font colour and theme of menu is also very essential and company need
integrate culture on menu design to attract more customers.
Flexibility
Pasco Cafe can increase their customer base by designing seasonal menu which have
pricing advantages and this also helps to retain existing customers. Flexibility in menu planning
and designing helps to target customers into different segments.
Truthfulness
Pasco need to analyse rules and regulations of government to protect right of customers
and provide promised quality, quantity and nutritions of products this also helps cafe to improve
food quality standards to grow business in market (Filimonau and Krivcova, 2017).
P2. Customer and Business Requirements In Different Menus
Static Menu
Static menu is stable menu which is provided to customers all year long. This menu helps
to serve food products which are needed immediately to customers. Pasco Cafe need to design
and plan this type of menu to reduce waiting time of customers who are in hurry. Cafe have to
analyse the food products which are easy to cook faster and increase satisfaction of customers.
Cafe analyses that customer requires hot food product with effective packaging to reduce
efficiency of product for take away.
A la Carte Menu
This menu specifies prices of products separately to increase customer choice. This type
of menu increase opportunity to increase customer satisfaction and help to provide more options
to retain customers to cafe (Nguyen, 2019). For designing and panning this type of menu Pasco
Cafe needs to identify cost and budget seasonal raw food to determine efficient prices in menu.
Cafe also need to improve the quality of food products to ensure better satisfaction of customers.
Beverage Menu
Pasco cafe requires better contacts and knowledge about all types of beverages to
increase options of customers. This also include analysing the market trends to ensure maximum
sold beverages of competitors in determining prices on menu. Customer requires coffee, tea in
hot beverages and ice tea, cold drinks in cold beverages in the menu. They also require proper
font which is easy to understand.
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LO2
P3. 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.
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.
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.
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.
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.
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.
P4. Accurately Priced and Costed Menu
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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.
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.
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.
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.
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.
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.
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.
Cost-to-profit margin ratios
Cafe has analysed that total margins is about 25 percent and also help to increase the
growth effectively.
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LO 3
P5. Realistic Plan to Develop Menu
Objectives
 To analyse current trends of market in formulating effective menu.
 To increase customer satisfaction and decrease prices of products.
Cafe need to adopt new technology which helps to improve the efficiency of food
production and reduce waiting time of customers to analyse cost of menu (Gottschall, Gultek and
Heroux, 2018). Cafe also has analysed that improved sitting arrangement facilitates effective
ambience for customers and improve experience to be loyal Pasco Cafe. As cafe is located
between offices and railway station it is very essential for increase food products which are low
priced to increase their sales and profitability of company. By introducing new products it will
help cafe to generate effective revenue. By implementing health and safety policies and hygienic
policies strictly will improve the value of customers to visit more. It provides better efficiency.
Menu plan will also consider the consistency in supply of raw material and fluctuation in prices
of raw material as it will impact the cost and final prices of products. Training and developing
employees will improve efficiency of cafe to do effective research and increase the productivity
of business to reduce cost and increase probability.
P6. Menu to Maximize Profitability of Pasco Cafe
Static Menu
Pizza(Dough, Cheese Preferable, Thin crust) £25
Burger(potato proteins, Soy protein and other ingredients) £20
Pasta(Flour, eggs, semolina and other ingredients) £30
Pasco Cafe have developed new menu with better quality of products and services. New
menu helps cafe to increase sales due to maximum customers are of offices and railway station
which are tourists, and they prefer food which is delicious and also fast to eat and leave. This
menu has the last food products which are emerging in food industry which helps to satisfy
customers and make them loyal to company. With the help of this new menu design it helps to
cafe TO increase sales and profit margins effectively. This also protect the legal obligations of
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health and safety of customers. Pizza, burger and pasta are easy to eat and packed fast food
products which helps to increase hygiene of the dish and improve the efficiency of cafe. Cafe has
also adopted new technology to take orders in kitchen and decrease the production time. The
menu help to increase the sales by 20 percent and increases the customer base by satisfying
requirement of business and customers effectively. This also helps to improve the knowledge of
customers by providing them with ingredients which are used in the dish to increase the
transparency and motivate them to visit more often.
P7. Test and Evaluation
Test and evaluation is the process of identifying the implemented course of action. This
also helps to evaluate the performance with help of particular tools and techniques. Pasco Uses
Key performance indicator to test and evaluate the menu planning and identify the errors which
were made during formulation of menu designing. Benchmarking also helps Cafe to test the
performance of employees in comparison to highly efficient business organization to ensure and
compare progress. Pasco cafe analyses that there is a need to increase the efficiency of
employees by implementing team management model (Buisman and et.al., 2019). The change in
the menu also increased the customer base but that also impacted the high priced food products
of business and reduced the net profit margins. Cafe has to increase the prices of new menu by
innovating it with new ingredients and making it more delicious to impact the ordering
behaviour of customers.
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.
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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.
Gottschall, R., Gultek, M. and Heroux, L., 2018. Similarities and Differences in US and
Canadian Restaurant Marketing Strategies: A Cross-Border Analysis of Menu
Offerings. Journal of Tourism and Hospitality Management. 6(1). pp.1-8.
Leib, T and et.al., 2018. Web-based menu design: A conjoint value analysis. International
Journal of Hospitality & Tourism Administration. 19(4). pp.361-373.
Linassi, R., Alberton, A. and Marinho, S.V., 2016. Menu engineering and activity-based
costing. International Journal of Contemporary Hospitality Management.
Lo, A., King, B. and Mackenzie, M., 2017. Restaurant customers’ attitude toward sustainability
and nutritional menu labels. Journal of Hospitality Marketing & Management. 26(8).
pp.846-867.
Nguyen, P., 2019. Creating A Menu & Service Concept.
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