Report: Menu Design, Development, and Costing for Pasco Cafe

This report provides a comprehensive analysis of menu design, development, and costing for Pasco Cafe. It begins with an overview of different menu types, including La Carte, Da Jour, and Cycle menus, evaluating their suitability for the cafe. The report then delves into the impact of customer and business requirements on menu planning, suggesting the adoption of either a La Carte or Da Jour menu based on cost-effectiveness and variety. A sample La Carte menu is developed, considering customer preferences and including sandwiches, wraps, salads, soups, cakes, coffee, and other beverages. Part 2 focuses on the cost and pricing of the menu, detailing the factors influencing both, such as raw material costs, labor, and equipment. It also discusses factors affecting menu pricing, including competition, service level, customer type, portion size, location, food quality, sales mix, intended profit margin, and tax charges. The report concludes by emphasizing the importance of balancing menu costs with customer expectations to ensure profitability and customer satisfaction.

Title

INTRODUCTION
Menu refers to list of food and beverages offered to customers by the restaurant and
places which are involved in the operation of food and beverages business. This report
includes design, development and planning of the menu for Pasco Café. This is cafe which
offers drinks like tea and coffee and in food cafe offers fast food and snakes.
Part 1
LO 1
Menus are of various types which are suitable for different type of businesses. Some meus are
being discussed here which are-
Overview of Menu
La Carte Menu
This menu list prices of each item individually and customer can choose item of their
choice and can combine on any form they wish (Kim, 2016). This menu has higher prices but
at the same tome this menu is flexible than any other type of menu.
Da Jour Menu
This menu includes item and food offering which are available on the day. This menu
changes everyday on the basis of availability of the items. This is generally adopted by all the
cafe.
Cycle Menu
This in this menu options are repeated after a time many times not the whole men but
part of menu is repeated over time (Buisman and et.al., 2019). For example one type of food
item is offered on Monday and other one is served on Tuesday.
Analysis of the Menu
La Carte Menu
This menu is adopted by almost all type of businesses which provide food items of
various type. Specially those who offer food which is known as full course menu. In this
customers are not bound to choose a specific option in its offerings and they can chose variety
of food items under different category. This provides large number of variety to the customers.

In case Pasco Café chose this type of menu then it will have to be prepare all the time with all
the resources required to prepare the food item (Grady and et.al., 2019). This menu is very
effective in context of meeting customer requirements and expectations of choices in food
item.
Da Jour Menu
This menu which includes what is available today is more beneficial for Pasco Café.
This provides the cafe with offering what they have. In this customers can choose from what
cafe has to offer. Pasco Café have customers which visit the cafe daily as the cafe s located in
railway station and offices. This is very beneficial for this as its daily customers will come to
this cafe only. This menu changes the food item daily and in this case people remain excited
about what will be included in today's menu. This is another benefit of this menu that
customers will come to cafe if they find their preferred item in the menu. This is very good for
cafe as this will enable cafe to utilize its resources.
Cycle Menu
This menu can be design on the basis of customers which are expected to visit on a
particular day. Pasco Café can use this on the basis of weak days and weekends. Customers in
weak days are its regular customers and on weekends customers are different (Chuang and
et.al., 2017). This type of menu is more suitable where restaurants provide various cuisines so
that it can offer a particular type of cuisine in cycle manner.
Impact of customer and business requirements on planning and designing of menu
Menu planning is mostly affected by customers and their requirements and businesses
have only objective that they are able to fulfil the requirements of the customers (Yoong and
et.al., 2016). This is aimed by them so that they are able to achieve customer loyalty and
which will contribute if their profit maximization. Requirement and situation of Pasco Café
also affect planning and designing of the menu as menu will only include items which
business can make by availability of the resources and expertise.
This discussion suggest that Pasco Café should adopt either La Carte Menu or adopt Da Jour
Menu (Riley and Douglas, 2016). This is because Da Jour Menu will bee beneficial in low

cost of the products and La Carte Menu is effective in case where cafe offers variety of food
and beverage.
LO 3
Developing Menu
On the basis of discussion which included consideration of business and customer
requirements a suggested menu for Pasco Café is as follows which is based on customer
preferences and have also aim at increasing customers of the cafe.
The menu is as follows-
Sandwiches/Baguette
Smoked Salmon priced small at £4.50 and big at £4.75
Chadder Cheese priced small at £3.00 and big at £3.30
Coronation Chicken priced small at £3.30 and big at £3.60
Tuna and Sweetcorn Mayo priced small at £3.30 and big at £3.60
Sausage priced at £3.60
Sandwich selection box priced at £3.90
Wraps
Chicken, Salad and Mayo priced at £3.70
Toastles
Cheddar Cheese priced at £3.50
Ham and Cheese priced at £4.50
Ham, cheese and Tomato priced at £4.70
Breakfast Toast priced at £1.80
Jam or Marmalade priced at £0.60
Salads
Plain Salad priced at £2.40
Pasta Mix £3.50
Tuna and Sweetcorn Mayo priced at £4.50
Prawn and smoked Salmon priced £5.70
Jacket Potatoes
Cheddar Cheese priced at £4.00

Soup (Gluten Free)
Large Bowl priced at £4.50
Small Bowl priced at £2.50
Cakes
Homemade cakes priced at £2.40
Crisps priced at £1.00
Vegetable Crisps priced at £1.25
Coffee
Expresso regular priced at £1.50 and Large priced at £2.10
Americano regular priced at £1.80 and large priced at £2.20
Cappuccino regular priced at £2.00 and large priced at £2.50
Latte regular priced at £2.00 and large priced at £2.50
Other hot drinks
Flavored Latte priced at £2.80
Hot Chocolate £2.50
Cold Drinks
Bottled Water (still) priced at £1.50
Bottled Water (sparkling) priced at £1.80
Bottled Juices priced at £2.50
This is a La Carte Menu for Pasco Café this has been developed considering various
factors this Menu includes food and drink items which are demanded by reguar customers and
Illustration 1: Cafe Menu.
Available Through: Copley Hill Cafe Menus, 2016.

along with that it includes items which are speciality of Pasco Café like Smoked Salmon and
Latte.
CONCLUSION
This report discusses various type of menu which Pasco Café can adopt. Menu are
prepared so that business can meet their requirement and at the same time requirements of
customers. Price and cost which is a important part of the menu have also been discussed on
this report.
PART 2
Cost and Price of the Menu
Costing and Pricing of the Menu is equally important as taste and variety of the food. In this
cost of the menu refers to cost which is incurred by the cafe. Price refers to price which is
asked by the cafe in exchange of the foo they offer to the customers. The difference in the cost
and the price is the profit earned by the cafe. This is why it is very important for the cafe that
it selects its price very carefully considering all the relaevant factors.factors which are
included in the price are cost the food and beverages and intended profit margin of the
company.
Cost of the Menu
Cost of the menu is depended on various other cost which collectively become cost if the food.
Cost is the overall cost of the food which is offered to customers this cost includes various
factors which are-
 cost of Raw Material
 Cost of labor
 Cost of equipment
To decide cost of menu the overall cost which includes overall cost of all these factors. In this
cost of ingredients is not only the cost at which they were acquired but all the cost which
includes cost of spoiled material. Cost of equipment not only includes equipment's cost at
which they were bought but also the cost which is incurred in maintaining the equipment.
Cost of labour includes all the cost of labour who are involved in operations of the Pasco Café.
This includes employees who are at front office and those who are engaged in making food.

All these costs are added and the collective cost is later divided on the basis of servings of that
food which is known as menu cost.
Cost of the food includes-
 cost of energy
 VAT
 Place rent
 salaries
 cost of resources
Price of the Menu
Cost is for business when it comes to customers they are charged price for the food which
includes various factors like cost which is prevailed in market and the cost which customers
are ready to pay for the food and drinks they buy.
Customers are very important to consider before determination of price. So is intended profit
margin of the owner.
Price of the menu includes cost of the food, profit margin and tax which are charged from the
customers.
All the factors which are included in cost are added by profit margin per serving.
Pricing also depends on the food like special food can be priced higher than regular price of
other food items.
While determining cost of menu other menu items are also considered as price of the menu is
more depended on the menu mix rather than only one item in the menu.
There are various factors which affect price determination of the menu. These are-
Competition
Pasco Café have to determine competition in the industry. In the basis of the level of the
competition Pasco Café can charge its prices.
Service Level
This is another factor which is included in the price of the service in this context refers to
involvement of Pasco Café with its customers. To which extent Pasco Café is able to fulfil
expectation of its customers other than food and beverages it provides.
Guest/Customer Type

This refers to customers who visit the cafe and buy its products. Customers if Pasco Café are
regular customers which suggest that Pasco Café keep its piece reasonable and affordable.
Portion Size
This refers to size and quantity of the product. In this menu price of the food have been based
on the size of the food.
Location
Location of the place also plays an important role in the price determination of the food and
menu. Cafe located at any posh area of the city may charge higher prices but a cafe which is
located at busy high street expecting regular customers need to keep it prices at affordable and
reasonable level.
Quality of the Food
Quality is an important factor which affect the price decision of the Cafe. Cafe which provide
high quality food ca charge higher price than others.
Sales Mix
This refers to all the products which are sold by the Pasco Café. Cost of all the food products
are not same and along with that all the products cannot be equally priced.
Intended Profit Margin
This refers to profit which the owner of the business intend to earn. In case business intends to
earn high profits than price of the products will be high.
Image of the Cafe
There are various factors which are included in building and increasing image of the Pasco
Café. This affect the piece determination of the cafe. If reputation and image of the cafe id
good in this case cafe an charge high price and if not, than it have to keep its price at low and
moderate level.
Tax charges
Tax charges are also included in the price of the food which also increase the price and which
is why cafe have to consider that the cost of its price is reasonable which does not increase too
much after the tax addition.
On the basis of this discussion it can be concluded that menu price which is important
consideration for both businesses and customers. The price charged by the customers mainly
depend on the cos of the food. Cost of the food is affected by cost of various ingredients and

other factors included in the preparation of the food. Later what customers can pay and what
can be charged by the cafe as pet its competitors. It is wise that price is lower than what is
charged by the competitors. This will attract more customers towards Pasco Café.

REFERENCES
Books and Journals
Buisman, M.E ad et.al., 2019. Donation management for menu planning at soup kitchens.
European Journal of Operational Research. 272(1). pp.324-338.
Chuang, T and et.al., 2017. Seedlings Café.
Grady, A and et.al., 2019. Effectiveness of a dissemination strategy on the uptake of an online
menu planning program: A controlled trial. Health Promotion Journal of Australia.
30. pp.20-25.
Kim, M. J., 2016. Restaurant menu design and food choice process.
Riley, T. and Douglas, S.R., 2016. The multicultural café: Enhancing authentic interaction for
adult English language learners through service learning.TESL Canada Journal.
34(1). pp.25-50.
Yoong, S.L ad et.al., 2016. CAFÉ: a multicomponent audit and feedback intervention to
improve implementation of healthy food policy in primary school canteens: a
randomised controlled trial. international journal of behavioral nutrition and physical
activity.13(1). p.126.