Menu Development and Planning: A UK Restaurant Cost Analysis

This report delves into the menu development, planning, and design aspects of a UK-based restaurant, Vanderlyle, known for its farm-to-table approach and seasonal tasting menus. It identifies key considerations for menu pricing and costing, including the impact of seasonality, economic climate, and business environment policies. The report provides a detailed menu pricing and costing analysis, highlighting food cost percentages, contribution margins, and the most sold items. It also includes a cost statement, recipe costing examples, and performance evaluation metrics such as cost-to-profit margin ratio and break-even point. The report concludes with recommendations for enhancing menu planning and marketing strategies to optimize sales and organizational growth. Desklib provides access to similar reports and solved assignments for students.

MENU DEVELOPMENT,
PLANNING AND DESIGN

TABLE OF CONTENT
 INTRODUCTION
 DETERMINING THE KEY CONSIDERATION TAKEN INTO ACCOUNT FOR
PRICING
 MENU PRICING AND COSTING
 RATIOS
 MOST SOLD ITEMS ON MENU
 COST STATEMENT
 RECEPIE COSTING STATEMENT
 RECOMMENDATIONS
 CONCLUSION

INTRODUCTION
 Menu planning is the process of deciding what
will be given in the menu for each meal, this
also includes main dishes, side dishes and
desserts.
 This is also important for entailing how the
meals and also the timing of when they will be
served.
 Vanderlyle is UK based restaurant which is a
very trendy restaurant with farm to table dishes
which focuses on the vegetables, plus
seasonal tasting menus.

KEY CONSIDERATION FOR
PRICING AND COSTING MENUS
 IMPACTS OF SEASONALITY
RESTRICTION ON MENU COSTS
CALCULATIONS
 THE CURRENT ECONOMIC CLIMATE,
INCLUSDING COST OF PRODUCTION
IMPLICATION ON MENU COSTING AND
PRICING
 BUSNESS ENVIRONMENT POLCIIES
AND THE EXTENT TO WHICH THEY
IMPACT THE COSTING OF THE MENU

IMPACTS OF SEASONALITY
RESTRICTION ON MENU COSTS
CALCULATIONS
 The impacts of the season changes the
different types of food materials which are
available during that period that can
actually influence the decision of cost
calculation.
 It is very common to fact that the prices of
certain product changes due to the
seasonal changes.
 The menu preparation requires better use
of costing that can help the organization in
growth.

CURRENT ECONOMIC
CONDITION, INCLUDING COST
OF PRODUCTION IMPLICATION
ON MENU COSTING AND
PRICING The economy of the country is also a factor which
influences the prices of the raw materials for the
menu planning.
 This is the reason for increase in the price of so
many products.
 It can be said that the growth of the business can
also bring success in the management of the
demand which is able to grow the business and
also maximize the revenue for the organization.

BUSNESS ENVIRONMENT
POLCIIES AND THEIR EXTENT TO
WHICH THEY IMPACT THE
COSTING OF THE MENU The business environment includes many
factors which can be the reason that may or
may not affect the pricing or costing of
menu.
 Menu of an organization is affected from
these factors too often then not.
 Competition is the external environment
factor which influences the menu of the
business which allows the business to bring
growth.

MENU PRICING AND COSTING
MENU ITEMS Menu Price
Portion
Cost
Food Cost
%
Portion
Contributio
n Margin
Total Food
Sold
Net
Income
Total Food
Cost Popularity
Salt Baked Kahirabi 12 4 33.33% 8 20 240 80 2.91%
Raisin Agrdoice 15 5 33.33% 10 50 750 250 7.28%
Pasley Emusion 20 2 10.00% 18 16 320 32 2.33%
Vegan Sausage roll 16 6 37.50% 10 50 800 300 7.28%
Radicchio 20 4 20.00% 16 54 1080 216 7.86%
Rose Radicchio 25 6 24.00% 19 46 1150 276 6.70%
Purple Peacock
Kale 20 8 40.00% 12 84 1680 672 12.23%
White Peacock kale 18 5 27.78% 13 15 270 75 2.18%
Pizzo Mustard 10 4 40.00% 6 23 230 92 3.35%
White Celery 15 3 20.00% 12 67 1005 201 9.75%
Dill 12 1 8.33% 11 49 588 49 7.13%
Smoked Beetroot 13 6 46.15% 7 84 1092 504 12.23%
Rainbow Chard 15 4 26.67% 11 64 960 256 9.32%
Beetroot Chocolate
cake 25 8 32.00% 17 65 1625 520 9.46%

RATIOS
FOOD COST PERCENTAGE
TOTAL CONTRIBUTION MARGIN
AVERAGE CONTRIBUTION MARGIN
CONTRIBUTION MARGIN/MENU
Ratio Formula Amount
Food Cost percentage Total Food Cost / Total Sales 29.88%
Ratio Formula Amount
Total Contribution Margin Total Sales - Total Food Cost 8267
Ratio Formula Amount
Average Contribution
Margin/Customer Contribution margin / Quantity Sold 12.03
Ratio Formula Amount
Contribution margin/ menu item
Total Sales-Total Food
Cost/Quantity Sold 12.03

MOST SOLD ITEMS ON MENU
 The following table shows the items in the menu which are most
sold in the organization. The total contribution of the revenue is
calculated with the help of the following,
 Net revenue for maximum sold products = 4723
 Total net revenue = 11790
 there fore = 4723/11790
 40%
Maximum sold Items
Items Revenues
White Peacock kale 750
Vegan Sausage roll 800
Dill 588
Rainbow Chard 960
Beetroot Chocolate cake 1625
Total 4723

LABOUR COST
 This is the cost which is
the total expenditure that is
incurred by the employees
for the employment of the
labor force which is
considered to be the
reference of the salary
cost.
Labour Cost
Chefs 537.26
Waiters 167.34
Workers 176.15
Total 880.75

ENERGY COST
 This is the ratio which is able to calculate the key essential fixed
costs which the business has to incur for meeting the energy
requirements for the business.
Energy Cost
Heating 273.03
Lighting 211.38
Water 132.11
Insulation 184.96
Others 79.27
Total 880.75

COST STATEMENT
 The cost statement is the break down all the costs which are
incurred by the business in the management of the direct and
indirect expenses of the business.
 This helps the business in calculating the total cost of the
restaurant.
Cost Statement Amount
Revenues 11790
Materials 1761.5
Labor cost 880.75
Energy Cost 880.75
Total 3523

PERFROMANCE EVALUATION
Sales – COGS / Sales
Cost to Profit Margin Ratio =
7481 – 1634.55 / 7481
70.12%
BEP = Fixed Cost / Contribution
Margin
1782.69

RECEPIE COSTING
Name of Dish Vegan Sausage roll Preparation Time 15 minutes
Total Cost 6.00 Cooking time 5 minutes
Portion Cost 2.2 Portion Size 100 g
Sales Price 16.00 Portion Nos 5
Items
Weight per kg/l/
units
Cost per Kg/l/ units
($) Actual cost
textured vegetable protein 0.100 1.2 0.12
tofu 0.165 0.8 0.132
Quorn or cheese mixed 0.950 0.6 0.57
flour and other ingredients 0.900 0.3 0.27
chickpeas 0.60 0.7 0.42
polenta and quinoa 0.15 0.5 0.075
Total cost 1.59

CONTINUE..
Name of Dish Dill Preparation Time 25 minutes
Total Cost 10.32 Cooking time 10 minutes
Portion Cost 1.0 Portion Size 500 g
Sales Price 10.00 Portion Nos 6
Items
Weight per kg/l/
units
Cost per Kg/l/
units ($) Actual cost
garlic 0.550 2.2 1.21
lemon 0.350 1.3 0.455
basil 0.600 3 1.8
parsley 0.55 2.5 1.375
paprika 0.120 1.5 0.18
horseradish 0.45 1 0.45
mustard 0.15 0.3 0.045
4 1 4
2 0.4 0.8
Total cost 10.32

RECOMMENDATIONS
 It will be very important for the menu
to make sure that it contain all the
essential requirements which are
related to the growth of the
organizational opportunities.
 In this restaurant the focus should be
on increasing the marketing of the
products which are not providing the
sales the organization is looking.

CONCLUSION
 With the help of this project it can be
concluded that the growth of this
restaurant depends on ways in which
effective menu planning methods can
be adapted.
 Menu planning can provide the
business with areas in which they
need to bring growth via application
of organizational operations.

REFERENCES
 Grady, A., and et.al., 2020. Menu planning practices in early childhood
education and care–factors associated with menu compliance with sector
dietary guidelines. Health Promotion Journal of Australia. 31(2). pp.216-223.
 Osman, B.I. and Sufahani, S.F., 2022. Nutritious Menu Planning for Sinusitis
Patient in Malaysian Through Optimization Approach. In Proceedings of the
Third International Conference on Trends in Computational and Cognitive
Engineering (pp. 31-44). Springer, Singapore.
 Jridi, I., Jerbi, B. and Kamoun, H., 2018. Menu planning with a dynamic goal
programming approach. Multiple Criteria Decision Making. 13. pp.74-87.