Pasco Cafe: Menu Development, Planning and Design - Business Report

This report examines the development, planning, and design of a menu for Pasco Cafe, a new establishment located near a railway station and offices in the UK. The report begins by outlining the principles of menu planning and design, including considerations like food size, flavors, nutritional quality, and the different types of menus (static, A La Carte, Du Jour, and cycle). It emphasizes the importance of understanding both customer requirements (quick service, appealing taste, and variety) and business requirements (realistic production, staff capabilities, and cost-effectiveness). The report then delves into menu costing and pricing, covering key factors such as raw material costs, labor wages, and the economic environment. It provides formulas for calculating food cost proportions, sales mix, and staffing costs, along with strategies for sustainable energy sources and accurately pricing dishes. The report also presents a realistic plan for menu development, considering target customers (20-50 age group), the appropriateness of the menu (focusing on fast food), cultural preferences, and the use of a static menu. It includes menu engineering techniques to optimize profitability and popularity, and concludes with a sample menu and an evaluation of its effectiveness, highlighting the need to adjust pricing for specific items based on customer feedback.

MENU DEVELOPMENT,
PLANNING AND DESIGN

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Principles of Menu Planning and Design to Meet Customer and Business Requirements....1
P2 Customer and Business Requirements Which Need To Be Fulfilled.....................................2
LO 2.................................................................................................................................................2
P3 Costing and Pricing Menus Key Considerations Which Needs To Be Taken.......................2
P4 Costing Price Menu................................................................................................................3
LO 3.................................................................................................................................................5
P5 Realistic Plan to Develop Menu.............................................................................................5
P6 Menu Which Meets Customers And Business Requirements................................................6
P7 Test and Evaluate....................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Menu is a list of dishes which are present in a restaurant so that the customers find it
easier to make their choices. It is very important to have an attractive menu for restaurant so that
they can attract more customers. Pasco Cafe is situated in United Kingdom which wants to
develop its menu since they are shifting to a small high street. The location is going to be very
suitable for cafe because it will be situated between a railway station and offices in town.
The report is a study of principles which helps in developing menu of the cafe and
understanding the customers needs and wants so that the menu can be improved and be
profitable for cafe. Costing the products according to the customers in that area, having realistic
plans for themselves and how will the changes be tested in market so that Pasco cafe can get a
profit.
LO 1
P1 Principles of Menu Planning and Design to Meet Customer and Business Requirements
Menu planning is the process in which planning is done of the products one is going to
consume. It is important to have a planned menu so that the customers find it easy for assisting
themselves in the restaurant. Principles of planning and developing are size of food, flavours,
colour, texture, nutritional quality, balance, etc. There are four types of menu's which are static,
A La Carte, Du Jour and cycle menus. Static menu are those menus which are permanent in
nature and there are no changes in menu throughout the year. A La Carte menu are those menus
which are having prices of the produces mentioned in them. Du Jour Menu are those menus
which are special for the day or week of the place for the customers to try and find it easy to plan
as to what they should order. There are two objectives of restaurant while planning menu which
are satisfaction of customers and meeting needs of business goals and objectives.
 Nutritional Quality
While planning the menu it is very important to consider different nutritional products in
menu so that the customers can have variety in the products which they consume. All items
should not consist of the same nutritional values.
 Size of Food
1

Customers can come alone or in groups therefore it is very important for restaurant to
consider that factor so that they can plan the menu accordingly so that they can fulfil needs of the
customers.
 Texture and Flavour
While planning a menu it is very important for the restaurant to consider that they are
supposed to provide variety in products. Even if the products are not going to be sold that much
but there should be a lot of varieties of products in menu.
P2 Customer and Business Requirements Which Need To Be Fulfilled
Customer Requirement
The requirements of the customers should be considered when there is a planning of
menu involved. Pasco is situated between a railway station and office therefore it is very
important for the menu to have products which can be served as a quick bite to the customers.
The pricing and taste should also make a difference in menu because customers want variety
with good taste so that they have a feeling of satisfaction.
Business requirement
Menu should be realistic in nature and products should be added which can be produced
by employees. Staff should be capable of producing the products on time so that the customers
do not have to wait for their orders for long. Raw material and inventory will be maintained if
menu is static in nature.
Safety, health and hygiene
Measures like health and safety also makes a lot of difference in the menu and variety
should be there so that there are no products which are being wasted and the cost of the cafe can
be saved. It is very important to take care of the safety and hygiene of the customers so that they
can have a better functioning of the cafe in market.
LO 2
P3 Costing and Pricing Menus Key Considerations Which Needs To Be Taken
There are a lot of factors which have to be considered when there is a requirement of
making menu for Pasco Cafe and the pricing does make an immense difference in it. There is a
lot of supplies which are got for producing the products that has to be considered and the wages
2

which are being paid to them also have to be considered because it is after paying the wages to
employees the cafe still should be able to make a profit is what Pasco should consider while
making menu. The pricing and costing of products will not just depend on customers but the cafe
economic environment as well. Prediction must be made by Pasco and the decisions for the
pricing and cost must be realistic in nature so that the planning will be better for them.
There are more factors which influence the pricing of menu for the cafe and restaurant
which are the inventory and equipments which are being used in cafe are also affecting the
menu. Seasonal factors are affecting the menu printing because there are a lot of products which
are not present throughout the year which have to be considered so that they can have a proper
functioning and attract the right customers in the restaurant and cafe. Economic environment of
the company will also make a lot of difference in the organization because they will have to
consider all the economic investment and the economic wages which they will be giving to the
employees have to be considered while pricing the products in menu.
P4 Costing Price Menu
Food cost Proportions
It is very important for having a set price for the products so that there is a better
functioning in Cafe. There are supplies, ingredients, production, services and staffing which can
to be included when a product is being priced for the generation of revenue for Pasco Cafe. The
formula which will be used for finding out the food cost proportion is going to be food cost
percentage is equal to selling price divided by portion cost.
Sales Mix
Selling price of the cafe can be determined by using the following formula. Cost mark-up
has to be higher than the cost of goods and labour so that the cafe can get profit. Calculating
selling price would require to multiply portion cost by cost mark-up.
Main Source of Revenue
Balancing the menu to achieve targets so that they can make revenue which is more
profitable than the production and wages which the cafe has to give. POS system stands for point
of sales system which is the purchases which are being made from time and place from where
the transaction is being completed. Raw material and supplies also have to be considered so that
they can make a profit accordingly.
3

Sustainable energy sources
Pasco Cafe must find measures for themselves through which they can have cost saving
for a long run in market. Methods like solar panels can be installed so that the electricity bills can
be reduced for long run. Kitchen garden can be produced in the backyard so that they can
produce their own vegetables.
Staffing Cost
It is very important not to have more staff than required and the wages also have to be set
for them so that cafe can make profits accordingly and price products in the cafe according to
them. For calculating staffing cost is equals to sales divided by the number of employees.
Cost- to- profit margin ratio
This help the cafe to understand the profit they have got after all wages and investment
they have done for serving customers right. Cost- to- profit is going to be calculated by dividing
profit with cost.
Accurately price dishes
4
Illustration 1: Main Source of Revenue
(Source: The Principles of Menu Engineering, 2020)

The cafe wants to make a profit of more than 30% of the cost then Pasco will price the
products in a way that they can achieve their objective. The formula for this is going to be that
pricing in menu is going to be equals to profit margin in addition of 30%.
LO 3
P5 Realistic Plan to Develop Menu
Target Customers
The age group which Pasco cafe is focusing on are between 20 and 50 because they are
attracted to fast food the most. Serves are going to be quick because the station and office people
would want a quick bite and leave for work.
Appropriateness of Menu
There will be no information about diet and nutrition of products which Pasco is going to
provide to customers because there are a lot of customers which are shifting towards healthy
food products and if the information is out then there will be no loyal customers.
Cultural preferences
Culture of United Kingdom is having incline towards fast food because they have been
having that from a long time. Opening a fast food cafe is going to very good for Pasco in that
local.
Types of menu
Static menu is going to be used in Pasco cafe because there are going to be loyal
customers which are going to come therefore it is very important for the cafe not to make too
many changes but continue to have same standards of quality and quantity of food.
Local and Seasonal Product
Pasco cafe is not going to have seasonal products because they want customers to be
loyal to cafe and if products keep changing then the quality will differ.
Menu Engineering
 Star- Product like pizza are having high popularity and profitability is also high for the
cafe.
 Horse- Drinks are going to be less profitable but the popularity is going to be high in
customers of the product.
5

 Puzzle- Profitability of French fries is going to be high but the popularity is going to be
low because the customers will not want starters. Dog- Desserts are going to have low profitability and low popularity in market.
Quality assurance
Menu is going to be very attractive since there is going to be good font, designing and
clarity is going to be good. This is going to make the cafe get more loyal customers.
P6 Menu Which Meets Customers And Business Requirements
Illustration 2: Menu of Pasco Cafe
This menu is going to attract a lot of customers to Pasco Cafe because they will be able to
fulfil needs of customers since they need a quick bite from office and they do not get such long
breaks. Fast food the main type of food items because that is the culture of the country which has
6

been kept into consideration. There will be no information about the nutritions which are going
to be added in the packing so that they can have loyal customers. Burgers, pizza's and tacos are
not seasonal products so there is going to be a balance in getting customers in Pasco Cafe.
P7 Test and Evaluate
It has been observed from the menu that the customers are getting attracted to the cafe
very quickly and having a static menu for the cafe is being very helpful. There are few changes
which will have to be made in the menu which is increasing the price of sweet drinks because it
has been noticed that the customers are getting very much attracted to that because they need a
drink with food they consume. This is going to be very profitable for Pasco Cafe because they
are situated in such a location that the customers will come if maintenance is going to be there in
cafe.
CONCLUSION
From the above report it can be concluded that planning and printing a menu does make a
great difference in cafes and restaurants for promotions and getting customers. Pricing of
products in the cafe needs to be understood and planning for getting staff and understanding the
customer is also present in this process. Menu has to be made according to the customers so that
customers get attracted and there will be a lot of profitability for restaurants and cafes.
7

REFERENCES
Books and Journals
Al-Heizan, M.O and et.al., 2018. The construct validity of a new screening measure of functional
cognitive ability: The menu task. Neuropsychological rehabilitation. pp.1-12.
Black, S and et.al., 2019. Design thinking. Organizational Behavior.
Dehlendorf, C and et.al., 2017. Development and field testing of a decision support tool to
facilitate shared decision making in contraceptive counseling. Patient education and
counseling. 100(7). pp.1374-1381.
Dennis, A., Wixom, B.H. and Roth, R.M., 2018. Systems analysis and design. John wiley &
sons.
Guyadeen, D. and Seasons, M., 2018. Evaluation theory and practice: Comparing program
evaluation and evaluation in planning. Journal of Planning Education and
Research. 38(1). pp.98-110.
Katayama, N., 2018. 3-Day Menu Planning for Existing Commercial Disaster Food Supplies
Using the Evaluation of Taste and The Blood Sugar Level. Recent Adv Food Sci Nutr
Res 2018: 38-46. DOI: https://doi. org/10.29199/FSNR, 101015. p.3.
Kellner, E. and Oberlack, C., 2019. Menu.
Lin, P and et.al., 2017. The impact of urban design descriptors on outdoor thermal environment:
A literature review. Energies. 10(12). p.2151.
Mohatt, N.V and et.al., 2018. A menu of options: Resources for preventing veteran suicide in
rural communities. Psychological services. 15(3). p.262.
Nunan, F and et.al., 2019. Menu.
Pettit, C and et.al., 2018. Planning support systems for smart cities. City, culture and society. 12.
pp.13-24.
Rajiani, I., 2018. Balanced nutrition menu intervention for toddlers in children daycare
center. Indian Journal of Public Health Research & Development. 9(11). pp.560-564.
Richardson, M., 2016. Pre-hacked: Open Design and the democratisation of product
development. New Media & Society. 18(4). pp.653-666.
Wiedemann, R. and Herzog, L.M., 2019. Menu.
Wright, A and et.al., 2018. Methods for Developing a DASH Diet Menu for a Controlled
Feeding Study in Adolescents. Journal of the Academy of Nutrition and
Dietetics. 118(10). p.A139.
Zaga-Mendez, A and et.al., 2019. Menu.
Zimmerman, J. and Forlizzi, J., 2017. Speed dating: providing a menu of possible futures. She Ji:
The Journal of Design, Economics, and Innovation. 3(1). pp.30-50.
Online
The Principles of Menu Engineering. 2020. [Online]. Available Through:
<https://opentextbc.ca/basickitchenandfoodservicemanagement/chapter/describe-the-
principles-of-menu-engineering/#return-footnote-351-1>.
8