The Salt Room Restaurant: Menu Development, Costing, and Pricing Plan

This report provides a comprehensive analysis of menu development planning and design, focusing on The Salt Room restaurant. It covers key considerations for costing and pricing menus, including the impact of revenue and cost, business environment policies, the economic climate, and equipment limitations. The report explores various approaches to menu costing and pricing, such as pricing by portion cost, raw food cost, competition, and demand analysis. It also emphasizes the importance of accurately costed and priced menus to meet customer requirements and discusses effective methods like competition pricing and demand-driven pricing. Furthermore, the report outlines a plan for menu development, incorporating key performance indicators (KPIs) to measure success, such as cash flow, labor cost percentage, and sales per employee. The conclusion highlights the significance of menu development in ensuring smooth business operations and recommends proper analysis and research to identify areas for improvement within The Salt Room restaurant.

Menu Development
Planning And Design

Introduction
Menu planning refers to the process of planning the meal in
such a manner that which includes all kinds of varieties
whether they are side dishes, main dishes and desserts.
Planning of menu is basically an art where careful selection
needs to be done for the different courses so that every dish
can be harmonised with others. In the present report,

Continue
In the present report, The Salt Room is taken into consideration. It
is a modern British restaurant for grilled meat and seafood in a
chic space with terrace and sea view. The present report will cover
discussion about main consideration which needs to be taken into
account when pricing and costing menus. In addition to this, the
report will cover analysis about accurately costed and priced
menus for meeting the requirements of customers.

Key considerations while costing and
pricing menus
There are certain key consideration which needs to be taken into
account when costing and pricing the menus and it is defined into the
following manner:
 The impact of revenue and cost from various sources-revenue
figures, cost to profit ratios, staffing costs and energy costs:
Under the cost of revenue figures, these are the amount or money
which generates by the restaurant. It is the money which comes
into the business by the support of any revenue streams.

Continue
For calculating the cost to profit ratios, there are three main levels for
calculating the profit of company on the income statement. It includes
gross profit margins, operating profit margins and net profit margins.

Continue
The energy costs basically includes lighting, heating, water, insulation
and others. Staffing cost basically includes labour costs and this cost
also includes payroll taxes, bonuses and overtime, health care, sick day
and vacation, bonuses and any other labour related costs. Restaurant
have to aim to keep cost of labour between 20 to 30 percent of gross
revenue. It has been observed that labour cost of restaurant is typically
the highest cost of owing a restaurant.

Continue
 Policies of business environment and the extent to which they
impact the cost of menus: The policy of environment basically
outlines the commitment of organisation in order to reduce its impact
on the environment. This also provides a framework for setting
objectives and also aims for improving the performance of
environment.

Continue
 The current economic climate which includes cost of
produce and the implications on pricing and menu
costing: The cost of food basically calculated through
following certain steps which includes each dish should be
break up into its ingredients, in the next step the cost of each
dish has been calculated and then figure out the fixed cost per
meal served.

Continue
 The limitation and scope of available equipment in context to the costs: There
are certain equipment's which are required in the commercial kitchen which
includes ovens, food processors, mixers, slicers etc.

Costed and priced menus to meet a range
of customer requirements
For meeting out the requirements of customers it is important to set a
particular price range of all rounds of menu. It basically includes starters,
main dishes, side dishes and desserts as well. The starters price range has
been set within the range of three to fourteen dollars and the main dishes has
been set within the range of nineteen to twenty eight dollars.

Continue

Continue