Outlaw's New Road: Menu Development, Planning, and Design Analysis

This report explores the critical aspects of menu development, planning, and design for restaurants, focusing on costing and pricing strategies. Key considerations such as competitor pricing, ingredient seasonality, equipment costs, and labor costs are analyzed within the context of Outlaw's New Road restaurant. The report examines different approaches to menu costing, including competition-based, value-based, cost-plus, and dynamic pricing, as well as menu pricing methods like competitive and penetration pricing. It emphasizes the importance of in-depth menu planning to minimize food wastage and optimize kitchen efficiency, highlighting the role of KPIs in measuring food cost percentage and commodity prices. The report also addresses common issues faced by restaurants in creating effective menu descriptions, advocating for concise and clear depictions to enhance customer engagement. Ultimately, the report underscores the significance of strategic menu planning in ensuring customer satisfaction and restaurant profitability, providing a comprehensive overview of the factors involved in creating a successful menu.

MENU DEVELOPMENT, PLANNING AND
DESIGN

Table of Contents
1. Introduction
2. Key considerations which needs to be taken
3. Cost and Price
4. Conclusion

Introduction
A menu is a list of food item which is present
to order and it includes variety of foods in it
like beverages, salad, dessert, main course
and many more (Mageto, 2022). Menu
Planning is done to put all the food items in
its category and to fulfil the needs and
requirements of the customers which is very
useful for the success of a restaurant

Key considerations which needs to be taken
Costing and pricing the menu of the restaurant
is an important part for the success of any of the
hospitality industry. Knowing the cost or price
of restaurant will aids in menu price, impacting
prime cost and plays an important role in
remaining profit (Yupita, Sanjaya and Harnadi,
2021). . In this procedure of costing and pricing
there are some of the key factors which has
been taken by Outlaw's New Road to increase
the level of knowledge.

Cost and Price
 Pricing of competitors: Pricing the food items in
the menu is a very important part of any of the
restaurant so it is very crucial to keep in mind that
what prices other restaurants are using. In case of
Outlaw's New Road, manager of the restaurant is
keeping an eye in the market about the pricing
strategy which other restaurants are following
(Epriliyansyah, Verina and Tanjung, 2020).

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 Pricing and seasonality of ingredients: It creates a very
huge impact on the restaurants as this will only decide that a
restaurant can make which kind of dishes (Meyer, 2018). .
In context of Outlaw's New Road, it is situated near an
ocean and serves sea food through which it becomes a very
easy task for the restaurant in the ingredients and saves cost
in the supply chain.

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 Equipment's: This is included in the
costing an pricing of a food in which
each and every restaurant will use this.
Without equipment's, no restaurant will
be able to work so in case of Outlaw's
New Road, it will help in increasing the
profit margin between costing and
pricing of the item.

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 Labour Cost: It is also a very important part for every
labour working in the company that is their salary. At the
same time it is necessary in controlling the cost of labour
for the maintenance of a profit (Nawari, 2019). . In case of
Outlaw's New Road, it will also provide health care,
bonuses and offers which encourage them to work and earn
more.

Budget

Budget

Analysis of the approaches to costing of menu
and pricing and use the effective methods
 Approaches that are used for menu costing are helpful as they aid the firm in.
profitability are –
 Competition based
 Value-based
 Cost plus
 Dynamic pricing