Marketing and the Menu

1. Marketing and the Menu Chapter 6

2. What is a Menu? 6.1

3. The Menu as a Tool • Menu is the most important document that defines the purpose, strategy, market, service, and theme of an operation. • Menu should help sell items to the customer • Menu is a guide for purchasing • Menu is also most important advertisement for the restaurant • Also the use of specialty menus • Before writing a menu for an establishment, menu planner must know the important characteristics of the operation • Who are the customers, food they serve, purpose of the operation etc.

4. Menu Cont. • Menus are planned different depending on the foodservice operation • Commercial = includes any type of operation that sells food and beverages for a profit, such as full-service restaurants, quick-service chains, recreational sports centers, and hotel restaurant. • Noncommercial = establishments are generally those operations that operate food services to support the actual purpose of the establishment ex. schools, colleges, airlines, and hospitals

5. Types of Menus • A la Carte • Food sold individually • Cyclical • Rotating menu (used in institutions etc) • California • Menu lists all meals available at any time during the day • Du jour • Menu offers different food each day • Limited • Menu offers few selections, used by quick-service and cafes • Table d’hote • Menu offers a complete meal of several items grouped together for a single price

6. The Order of Courses • Most menus organize foods according to the orders in which they are eaten • Appetizers and soups • Sandwiches • Salads • Entrees • Vegetables • Desserts • Beverages • Foods within a major classification should be prepared using a variety of cooking methods • Entrees can be divided up into categories • Different types of menu (breakfast, brunch, lunch, afternoon and dinner) • BALANCE ENTIRE MENU

7. Developing a Menu Menu Content = refers to the selections of food items in each menu category • Physical layout of the facility, including space for storage, preparation, and service areas • Skill level and number of employees • Availability of food • Customers’ needs • Customers’ expectations of the menu offerings and prices • Profit margin and price range

8. Steps to Developing Menu Content • List all possible items • Eliminate items • 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

9. Questions • The __________ is an important tool that helps servers sell food to customers and helps managers plan their purchasing and production systems. • Hardee’s, TGI Friday’, a hotel restaurant, and a local pizzeria are called ____________ operations because they sell food in order to make a profit. • Your school cafeteria is a __________ foodservice operation because it supports the school and isn’t open to the public. • On a(n)__________ menu, items are listed separately, a separate prices. • The __________, or main course, is the featured attraction of the meal. • _______________ is a combination of breakfast and lunch. • Which type of menu, groups several food items together for one price. • How often does a du jour menu change?

10. Designing and Analyzing the Menu 6.2

11. Menu Design • There are two main functions of successful menu are communicating and selling • An appealing menu contains a variety of items developed according to market factors and customer preferences. • Menus need to be attractive and presented so customers can easily and quickly read and understand the items and reflect restaurant atmosphere

12. Menu Design • Cover Stock • Laminated • Clip-on (temp. attachment to a menu) • Shape of a menu ex. fish for a seafood restaurant • Format, size of lettering, fonts • A MENU IS A MARKETING TOOL, IT SHOULD REFELECT THE ESTABLISHMENT’S ATMOSHPER AND THEME

13. Analyzing Menus Menu Analysis = helps managers make decisions about keeping, cutting, or adding menu items. • Prices, the market, food costs, seasonal factors, and where items are placed on a menu influence a menu’s performance Menu Analysis Worksheet = shows how each item contributes to profitability, allowing managers to evaluate menus • Analyzing menu can be done manually, but most operations are completed on a computer

14. 12 Steps to Determine the Success of Menu Items • List all items on the menu. • Determine the number of each item sold in a specific time period (called menu mix) • Determine each item’s menu mix percentage by dividing its menu mix by the total number of items sold in that period Menu Mix % = Menu mix (number of an item sold) Total number of items sold

15. 12 Steps Continued • Categorize each item’s menu mix percentage as either high or low (according to standards set by management. • List each item’s selling price. • Determine each item’s standard food cost. • Determine each item’s contribution margin by subtracting its standard food cost from it’s selling price Contribution margin = selling price-standard food cost

16. 12 Steps Continued • Determine the menu contribution margin by adding each item’s contribution margin and menu mix Menu contribution margin = all contribution margins + all menu mixes • Determine each item's contribution margin proportion by dividing its contribution margin by the menu contribution margin Contribution margin proportion = contribution margin menu contribution margin

17. 12 Steps Continued • Categorize each item’s contribution margin as high or low according to its relationship to the average contribution margin achievement rate. This rate is found by dividing the menu contribution margin (step 8) by the total number of items sold (step 2) Avg. contribution margin rate = Menu contribution margin Total number of items sold

18. 12 Steps Continued • Classify each menu item in relation to the others. • Dog – low menu mix percent, low contribution margin • Puzzle – low menu mix percent, high contribution margin • Plowhorse – high menu mix percent, low contribution margin • Star – high menu mix percent, high contribution margin • Make decisions for each item based on all the previous information. Such decisions might be to retain, reprice, reposition, or replace items.

19. Questions for 6.2 A quick-service restaurant sold 21, 248 total items last month, including 3,419 chocolate milkshakes. Each chocolate milkshake coast $.45 and sold for $1.29 • What was the menu mix for chocolate milkshakes? • What was the menu mix percentage for chocolate milkshakes? • What is the contribution margin for chocolate milkshakes? • If it turns out that the chocolate milkshakes have a high menu mix percentage bit a low contrition margin, what will they be classified as?