2. Menu Planning & Menu DesignMenu Analysis Using the Menu & For Profitability Decision Making Using the Menu For Budgets & Ratio Analysis
3. Menu Planning &Menu Design cont…
4. Recap of this morning
5. Why is the menu the most important planning andmarketing tool of every food service operation?
6. What are the priorityconcerns of a menu planner?
7. Menu BalanceBusiness Aesthetics
8. Menu DesignWhat should a well designed menu achieve?What questions need to beconsidered when designing the menu?
9. Menu Design What issues need to beconsidered with Menu copy?Menu item descriptions? Do descriptions sell?
10. Questions from this morning
11. Menu Design Supplemental MerchandisingWhat additional materialcould/should be included on my menu?
12. Hours, Meals Served Reservation Policy Payment Policy Address UpcomingTelephone Supplemental Events Fax Merchandising Community Web site Support History Commitment to Service
13. Menu DesignPlanning and Layout?
14. 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
15. Menu Design Do different places on a menu sell better? Gaze Motion StudyTheory of Primacy and Recency
16. Menu DesignWhat are some commonMenu-Design Mistakes?
17. 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
18. Menu Analysis & Profitability
19. Before the menu is evaluated and analysed ONE big question needs to be asked
20. 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
21. To determine future revenuefor a period what questions need asking in terms of numbers?
22. 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
23. Once performance objectives are set a simple performance table can be created to measure actualresults against the objective (goal)
24. 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
25. What issues did theexample raise in terms of business performance?
26. 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
27. When evaluating a menu what questions do we need to ask?
28. 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?
29. 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?
30. 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
31. Maximising Profit from the Menu
32. The only real way tomaximize profit from amenu is to ANALYSE the SALESperformance of each menu item over a period of time.
33. How should menus be evaluated todetermine whether the “right” menu items are being sold?
34. By answering the two BIG questions Is it Is itPOPULAR PROFITABLE for our for mycustomers? business?
35. How is POPULARITY measured? Measure thisSales against a pre- determined Mix By measuring standard how often a dish is sold over a given period.
36. How is PROFITABILITY measured?Contribution After materialMargin (CM) cost i.e in $ Food Cost (FC) By calculating what each dish contributes to the operation
37. 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 %
38. What happens when POPULARITYIs combined withPROFITABILITY?
39. Popular PopularBUT NOT &Profitable Profitable 4 ways to classify Menu items NOT NOT Popular Popular & NOT BUTProfitable Profitable
40. HIGH Popularity horse star LOW dog puzzle LOW Profitability HIGHResearch from Kasavana & Smith Research from Kasavana & Smith
41. Extending theconcept to include kitchen labour inrelation to a menu item
42. Question? Is the menu itemlabour intensive or not to prepare, cook and serve
43. 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
44. Extending thebasic concept to an entire menu
45. 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%
46. 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
47. 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%
48. 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
49. In order to put thetheory into practicewe must have built in control procedures
50. What standard cost tools (CT)are applicable to a Food Menu
51. Menu ItemCT#1: Purchase Specifications CT#2: Standard Recipes CT#3: Standard Yield CT#4: Standard Portion Size CT#5: Standard Portion Cost
52. Can this sameprocedure be applied to Beverages
53. What does astandard recipes consist of?
54. Summary of Ingredients Required Cost of each itemquantity of each and cost of recipePortion Main size Equipment Preparation procedure including time & difficulty factor
55. Why are standard recipes soimportant from abusiness point of view?
56. 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
57. 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
58. What FACTS do wewant to obtain whena menu is analysedfrom a control point of view?