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Marketing and the Menu

Marketing and the Menu. Types of Menus. A la carte Offers food separately at separate prices Cyclical Repeated – institutional food services California All meals any time Du jour “of the day” changes daily Limited Few selections – quick service restaurants Table d’hote

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Marketing and the Menu

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  1. Marketing and the Menu

  2. Types of Menus • A la carte • Offers food separately at separate prices • Cyclical • Repeated – institutional food services • California • All meals any time • Du jour • “of the day” changes daily • Limited • Few selections – quick service restaurants • Table d’hote • Complete meal grouped together

  3. Five Steps to Menu Planning • List all possible items • Eliminate items that are difficult to purchase, prepare or serve • Tailor items to fit customers, cuisine and theme • Choose items within the price range that can be prepared well • Make final selections for the printed menu

  4. What makes a menu? • Size • Cover material • Cover art • Descriptions • Portion size • Price • Arrangement • Negative/white space • Color • Menu material • Fonts

  5. Menu AnalysisIs it a dog or a star? • List all items on the menu • Determine the number of each item sold in a specific time period (usually a month). This number is called the menu mix. • Determine each item’s menu mix percentage by dividing its menu mix by the total number of items sold in that period.

  6. List each item’s food cost • List each item’s selling price • Determine each item’s contribution margin (how much of the selling price is profit) • Determine the menu contribution margin (how much total profit did it generate for the month) • Calculate the average contribution margin achievement rate – this is the average profit a dish made in a month

  7. Determine the contribution margin category by comparing the average contribution margin to the item contribution margin – above the average it is high, below it is low • Determine the menu mix percent category – low below 7 high above 8 • Determine Menu Item Classification

  8. Dog – low contribution margin, low menu mix (doesn’t make much profit, sells very little) • Puzzle – high contribution margin, low menu mix (makes lots of money, but doesn’t sell well – can it be fixed?) • Plowhorse – low contribution margin, high menu mix (doesn’t make much profit, but sells lots) • Star – high contribution margin, high menu mix (makes lots of money and sells well, too bad they can’t all be stars!!)

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