Correct SequenceEasy to of Dishes House Read Specialities Menu Items Font Planning a Names and Paper Layout DescriptiveArtwork Copy Menu Format Which Placepositions Single-Panel for Daily sell? Two-Panel Specials Tri-Panel
Menu Design Do different places on a menu sell better? Gaze Motion StudyTheory of Primacy and Recency
Menu DesignWhat are some commonMenu-Design Mistakes?
Clip on Type is No Problems too descriptive small copy or Blank too little Pages Basic EveryExpensive Information itemto Reprint about the treated property is not the same included Easily Some Dirty Food & Beverage Menu is items not Spelling too listed Mistakes small
Before the menu is evaluated and analysed ONE big question needs to be asked
Average Spend Average on Food per Number of Customer for Courses for Lunch / Dinner Lunch / Dinner What performance goals were BudgetBudget set for the operation in terms of revenue? Average Spend Seat Turnover on Drinks per for Lunch / Customer for Dinner Lunch / Dinner
To determine future revenuefor a period what questions need asking in terms of numbers?
How many seats in 80 the restaurant? Days open per week 6 Lunch / Dinner? Lunch Dinner Seat Turnover for Lunch / Dinner? 1.6 0.50 Average spend on $20 $32 Food per guest? Average spend on $8 $14 Drinks per guest?Budgeted Total Weekly Revenue $21,504 $11,040
Once performance objectives are set a simple performance table can be created to measure actualresults against the objective (goal)
Performance Table Revenue Goal Actual Variance Performance Comment Goals (80 seats) L D L D L DAvg. Spend Food $20 $32 $17 $25 ($3) ($4) Avg. No. courses 1.5 3 1.2 2.5 (0.3) (0.5)Avg. Spend Drinks $8 $14 $6 $17 ($2) +$3Seat Turnover (80) 1.6 0.50 1.3 0.75 (0.3) +0.25 Lunch Dinner Budget $21,504 $11,040 Actual $14,352 $15,120 Variance $ 7,152 $ 4,080
What issues did theexample raise in terms of business performance?
What are What are What the key the key issues need negative positive to be points? points? addressed?Avg. spend food Budget (were the goals Avg. spend Avg. spend set too high?) drinks (L) drinks (D) Staffing (training No. of courses Seat turnover (D) and up-selling)Seat turnover (L) Menu
When evaluating a menu what questions do we need to ask?
Have guests Have guestscomplimented complained the menu? about the How does menu? the menu compare with those of Is there competitors?enough / too Is themuch variety menu in menu attractive? items?
Are the menu Is there too items laid out much / notin an appealing enough and logical descriptive sequence? Are the menus copy? easy to maintain so guests always receive a clean attractive menu? Is the menu easy to read Does the paper and match the understand? restaurant’s theme and décor?
Has the Are the menuaverage check items priced remained correctly? stable, increased or decreased? Is attention called to items managers most want to sell? Is the right mix of high-profit and low-profit items placement colour being sold? description type size
The only real way tomaximize profit from amenu is to ANALYSE the SALESperformance of each menu item over a period of time.
How should menus be evaluated todetermine whether the “right” menu items are being sold?
By answering the two BIG questions Is it Is itPOPULAR PROFITABLE for our for mycustomers? business?
How is POPULARITY measured? Measure thisSales against a pre- determined Mix By measuring standard how often a dish is sold over a given period.
How is PROFITABILITY measured?Contribution After materialMargin (CM) cost i.e in $ Food Cost (FC) By calculating what each dish contributes to the operation
QUESTIONCM is Which item is CM is$6.50 the better one $7.50 15% to sell? Item 1 Item 2 Food Cost $ 1.50 Food Cost $ 3.50 Selling Price $ 8.00 Selling Price $11.00 Food Cost % = 18.75% Food Cost % = 31.81% Remember you bank $ not %
What happens when POPULARITYIs combined withPROFITABILITY?
Popular PopularBUT NOT &Profitable Profitable 4 ways to classify Menu items NOT NOT Popular Popular & NOT BUTProfitable Profitable
HIGH Popularity horse star LOW dog puzzle LOW Profitability HIGHResearch from Kasavana & Smith Research from Kasavana & Smith
Extending theconcept to include kitchen labour inrelation to a menu item
Question? Is the menu itemlabour intensive or not to prepare, cook and serve
Popularity e g r rs in c to ho n hi tarH tr a L S S d og o ur l e b zz La e pu at r m ta lti og s - u d in r ra se B aL H te Profitability L H Research from Le Bruto, Quain & Ashley Research from Le Bruto, Quain & Ashley
To accurately analyse an entire menu it must be separated into its key course offerings MainStarters Desserts Courses The total MENU MIX for each area is 100%
What information is required for each menu item?Food Cost Selling Price Number sold (FC) (SP) for the period Measuring these factors against defined standards for profitability and popularity
Measuring PopularityEach menu Expected An item is item is Popularity POPULAR ifassumed to (EP) it reaches be equally = 70% of the popular EP 100% / no. of Research from Kasavana & Smith items Research from Kasavana & Smith Popularity Index = EP x 70%
Measuring ProfitabilityCalculate theContribution An item isMargin (CM) Calculate the PROFITABLE if per item on Average CM the menu (ACM) within each CM ≥ ACM course for all items SP - FC sold for the period ACM = Total CM / No. of Items Sold
In order to put thetheory into practicewe must have built in control procedures
What standard cost tools (CT)are applicable to a Food Menu
Menu ItemCT#1: Purchase Specifications CT#2: Standard Recipes CT#3: Standard Yield CT#4: Standard Portion Size CT#5: Standard Portion Cost
Can this sameprocedure be applied to Beverages
Summary of Ingredients Required Cost of each itemquantity of each and cost of recipePortion Main size Equipment Preparation procedure including time & difficulty factor
Why are standard recipes soimportant from abusiness point of view?
Accurate Food Less Cost of the dish supervision as guesswork is eliminated ConsistencyReduces Look, Costs,wastage Tastes the same Satisfied The recipe is NOT customer just in someone’sexpectations head
In order to engineer and analyse a menu we must have built in control procedures Ingredient Standard Correct List with Recipes Customer up-to-date for an Countsfood prices accurate and Menu Food Cost Sales
What FACTS do wewant to obtain whena menu is analysedfrom a control point of view?