CHAPTER SEVEN: THE MENU

1. Factors to Consider • Common Menu Types • Methods for Pricing • Determining a Menu’s Design and Layout CHAPTER SEVEN: THE MENU

2. FOOD QUALITY • What many restaurant patrons consider as the most important factor when selecting a restaurant • Ranks above service, value, and even cleanliness

3. CONSIDERATIONS IN MENU PLANNING • Needs and desires of guests • Capability of cooks • Equipment capacity and layout • Consistency and availability of ingredients • Price and pricing strategies • Nutritional value • Contribution theory • Accuracy in menu • Actual menu Items • Menu design and layout • Standard recipes • Food cost percentage

4. CAPABILITY/CONSISTENCY • Standardized recipes • List quantities of ingredients and step-by-step methods to produce a quality product • Menu complexity • Number of meals served • Number of people to supervise

5. EQUIPMENT • Purchase the right equipment to achieve maximum production efficiency • Many establishments plan the equipment according to the menu • Efficient layout • Systematic flow of items from receiving clerk to guests assures operational efficiency • Avoid over use • Too many menu items requiring one piece of equipment may slow service

6. AVAILABILITY • Constant, reliable source of supply • Reasonable price • High-quality ingredients • Take advantage of seasons • Use seasonal or daily menus

7. PRICE Factors in building price-value: • Amount of product • Quality of product • Reliability or consistency of product • Uniqueness of product • Product options or choices • Service convenience • Comfort level • Reliability or consistency of service • Tie-in offers or freebies

8. VALUE CREATION • 2 components • What you provide • What you charge for it • To build value, you need to: • Increase the perception of value of what you provide • Lower the price your charge for it • Do both of the above

9. PRICING STRATEGIES 2 main ways to price a menu: • Comparative approach • Analyzes competitions’ prices and determines selection of appetizers, entrees, and desserts • Individual items then selected and priced • Cost of ingredients must equal predetermined food cost percentage • Ratio method • Price individual item and multiply it by the ratio amount necessary to achieve the desired food cost percentage • May lead to weighted average approach • food cost percentage, contribution margin, and sales volume are weighted

10. FOOD COST PERCENTAGE • Varies with sales • Target is about 33% of sales • Calculating food cost percentage: Opening inventory + purchases – closing inventory = Cost of food consumed Food cost/Sales of food = Food cost percentage • EXAMPLE: • Opening inventory $10,000 sales=$200,000 • +Purchases $66,6666 Food Cost Percentage= • =Total food consumed $76,660 $66,666/$200,000= 33% • -Closing inventory $10,000 • =Cost of food consumed $66,6666

11. NUTRITIONAL VALUE • Greater public awareness of healthy food and individual wellness • Demand for healthier items like chicken and fish increasing • Changes in type of cooking oil • Boiling, poaching, steaming, roasting, etc. as opposed to frying • Lower-fat menu items • More meatless and vegetarian options

12. CONTRIBUTION MARGIN • Difference between the sales and the cost of the item • Amount goes towards covering fixed and variable costs EXAMPLE: steak selling price $10.95 -steak cost $5.00 =contribution margin $5.95

13. MENU ITEMS • Independent restaurants are more creative than chain restaurants • Menu items selected depend on type of restaurant • Appetizers and soups • 6-8 adequate for most establishments • Salads • Preferred starter in many restaurants • Entrees • At least 8 in a table-service restaurant • Desserts • Can be purchased, made, or finished off in-house • Matching/pairing • Couple a type of wine with a general class of food

14. MENU TYPES • Dinner-house • Separate similar entrees • A la carte • Individually priced items, most often used menu • Table d’hote • Selection of several dishes from which patrons make a complete meal at a fixed price • Cyclical • Repeat every few days, used in institutions • California • Can order any menu item at any time of day • Tourist • Used to attract tourists to a particular restaurant • Degustation • A sample of the chef’s best dishes

15. MENU ANALYSIS • Should be a balance between a menu too high in food cost and too low in food cost • Menu engineering • Best menu items are those with highest contribution margin per unit and highest sales • It is recommended to analyze by: • Individual menu items • Categories of menu offering • Meal periods or business categories

16. PRICING GUIDELINES • Use odd increments for cents • Do not right price increases over old prices • Resist increases that raise the dollar amount of an item • Give items that have been drastically increased in price a less noticeable menu spot • Try to reduce large portions before raising prices • Never increase price of whole menu • Put “market price” on items that fluctuate • Do not list menu items according to cost

17. DESIGN AND LAYOUT • Range form one to several pages • Variety of shapes • Generally 9x12in or 11x17in • Printing and artwork should harmonize with theme of the restaurant • Easy to read and understand • Strong focal point

18. FOCAL POINTS • Focal point of a single- page menu • Focal point of two- or four-page menu

19. The End