Menu Development, Planning, Design: Costing and Pricing in Restaurants

This presentation delves into the critical aspects of menu development, planning, and design within the hospitality industry, with a specific focus on Restaurant Gordon Ramsay as a case study. It highlights key considerations for successful menu planning, including accurately costing and pricing menu items to attract a broad customer base while maximizing profitability. The presentation outlines various approaches to menu costing and pricing, such as pricing by portion cost, raw food cost, competition analysis, and demand analysis. It emphasizes the importance of balancing high-cost and low-cost items and conducting market research to understand competitor strategies. Ultimately, the presentation concludes that a well-designed and accurately priced menu is essential for meeting customer needs and achieving profitability in the restaurant business. Desklib provides access to similar past papers and solved assignments for students.

Menu Development, Planning
and Design

Table of contents
 Introduction
 Key considerations
 Accurately costed and priced menus
 Approaches to menu costing and pricing
 Conclusion
 References

INTRODUCTION
 Menu is defined as collection of Food and Beverages that restaurants or hotels offers
to their guests. Menu consist of variety of food, beverages, salads, soups, deserts and
many more items with their prices. While designing menu it becomes very essential
for hospitality industry to focus on pricing strategies so that it could attract large base
of customers. For completing this presentation, the restaurant which has been taken
into consideration is Restaurant Gordon Ramsay which is based in UK and was
founded in the year 1998 by Gordon Ramsay.

Key considerations
 For getting success in hospitality industry, it is very
essential for restaurants to focus on pricing their
menu accurately that could attract large base of
customers and provide them maximum profitability.
In terms of Restaurant Gordon Ramsay, there are
some factors associated with cost and price that need
to be considered while planning a menu.

Continue..
 Cost out menu: The first step while
developing menu pricing strategy it is
essential for restaurant to cost out their menu.
If the selected restaurant wants to achieve
maximum profitability than it must know
food cost percentage for every item in its
menu.

Continue..
 Competition
Another factor which needs to be analysed by Restaurant Gordon Ramsay
while planning menu pricing is to check out costing strategies of its
competitors who are offering same food categories. It is important that the
selected restaurant must include special dishes or discounts that could
differentiate it from its rivals and grab attention of people. The restaurant
should conduct market research by collecting menu of other restaurants
and conduct competitive pricing analysis.

Continue..
 Find Balance
One of the key factors to maximize profitability by applying accurate
menu pricing is to find balance between high-cost items and low-cost
commodities. In case of respective hotel, it could find balance by
considering some factors such as keep updating its food costs so that it
knows cost of every item in the menu. Secondly, the restaurant could
invest in point of sale scheme that can develop accurate product mix
report and lastly staying focused as well as committed towards restaurant.

Accurately costed and priced
menus
A B C D E F G H I J
Menu Item Total
Sold
Menu
Price
Portion
Cost
Food
Cost %
Portion
C.M.[1]
Total
Food Sales
Total
Food Cost
Total
C.M.
C.M.%
Steel-Cut
Oatmeal
12 £19.50 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Cinnamon
Quinoa
breakfast bowl
8 £20.50 £4.25 36.00% £7.70 £95.60 £34.00 £61.60 15.00%

Continue..
Vegan French
toast
10 £11.25 £3.75 31.00% £8.20 £69.5 £21.5 £48 20.00%
Vegan
Pumpkin Mac
'n' Cheese
5 £151.20 £3.50 32.00% £7.45 £54.75 £17.5 £37.25 9.00%
Vegan Gyros
with
Mushrooms
4 £45.20 £5.25 35.00% £9.70 £59.80 £21.00 £38.80 9.00%

Continue..
Roasted Broccoli
Pasta Salad with
Hemp Pesto
6 £58.36 £4.00 31.00% £8.95 £77.70 £24.00 £53.70 13.00%
Spicy Chinese
eggplant with
Szechuan
sauce
10 £65.23 £2.75 25.00% £8.20 £131.40 £33.00 £98.40 24.00%
Vegan Tacos 5 £72.30 £7.25 45.00% £8.70 £79.75 36.25 £43.50 10.00%
Totals 60 £699.9 £184 £402.15

Continue..
Item Tota
l
Sold
Menu
Price
Portio
n Cost
Food
Cost
%
Portio
n C.M.
Total
Food
Sales
Total
Food
Cost
Total
C.M.
C.M.
%
Strawberry
lemonade
31 £10.02 £1.93 28.59
%
£4.82 £59.83 £209.25 £149.4
2
4.63%
Black
Cherry
Bourbon
Cola
211 £07.85 £1.72 25.48
%
£5.03 £362.92 £1,424.2
5
£1,061.
33
31.54
%

Continue..
Almond Butter &
Banana Protein
Smoothie
71 £05.36 £1.53 22.01% £5.43 £108.63 £493.45 £384.82 10.61%
Vegan Peanut
Butter Cookies
19 £15.20 £2.23 29.73% £5.27 £42.37 £142.50 £100.13 2.84%
Pistachio Oat
Squares
78 £16.52 £1.55 26.05% £4.40 £120.90 £464.10 £343.20 11.66%