Menu management week 4 31 oct 2012

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Menu management week 4 31 oct 2012

  1. 1. Week 4MENU MANAGEMENT Dimitris S. Dimitriou Hotel Management Program www.citycollege.ac.cy
  2. 2. Nutrition for Food Service Operation• Nutrition and Food Issues are Huge• Two-thirds of Americans are overweight.• 48 million fall ill to pathogens in food annually.• 12.6 million dont have enough food to stay healthy. Hotel Management Program www.citycollege.ac.cy
  3. 3. Nutrition: The Science of Food• Nutrition: the study of nutrients in food, how the body uses nutrients, and the relationship between diet, health and disease. Major food manufacturers employ nutritionists and food scientists. Nutritionists may also work in journalism, education and research. Many nutritionists work in the field of food science and technology. Hotel Management Program www.citycollege.ac.cy
  4. 4. The human body requires seven major types of nutrients A nutrient is a source of nourishment, an ingredient in a food, e.g. protein, carbohydrate, fat, vitamin, mineral, fiber and water. Macronutrients are nutrients we need in relatively large quantities. Micronutrients are nutrients we need in relatively small quantities. Hotel Management Program www.citycollege.ac.cy
  5. 5. Marine Ecosystems in Danger From Climate ChangeClimate change is projected to shrink thebody weight of marine fishes by 14 to 24%globally by 2050, according to a recent studyfrom The University of British Columbia. Theresults of the study provide a newunderstanding of climate change’s impact onmarine ecosystems.
  6. 6. • Indeed, changes in temperature and oxygen content directly affect the ecophysiology (the adaptation of an organism’s functions to environmental conditions) of marine water- breathing organisms and lead to a reduction in both individual and assemblage-level body size. Hotel Management Program www.citycollege.ac.cy
  7. 7. Nutrition and Food Service Managers Services include the following, and they specializein requests:Evaluation of meal servicesPeriodic reviews of food production, mealpreparation and sanitationTraining of the staff in all aspects of food servicemanagement, food safety and sanitation, residentacceptance and the concept of hospitalityMenu development and analysis Hotel Management Program www.citycollege.ac.cy
  8. 8. •Policy and procedure manuals•Detailed in services to your food service and dietary staffincluding precepting of Dietary Manager course as needed•Fiscal education and support including: development ofcomprehensive fiscal controls and analysis of food and laborbudgets•Quality Assurance: monitor adherence to facility policies,menu systems, and purchasing and ordering systems Hotel Management Program www.citycollege.ac.cy
  9. 9. Contemporary Dietary Concerns • Images If youve ever combed the supermarket for affordable, quality, nutritious foods, you know how difficult it can be. With rising food costs, the need for convenience and the frequent inability to read and understand ingredients lists, you may end up with a basket full of unhealthy foods. However, even with these challenges, six in 10 Americans consider nutrition "very important," according to a recent poll by the American Dietetic Association. Though the number of people concerned about nutrition has increased in the past few decades, life-threatening, diet-related problems like cancer, heart disease, diabetes, digestive conditions and obesity plague the population. http://www.livestrong.com/article/342878-contemporary-nutrition- issues-insights/#ixzz2AjyGlEEGHotel Management Programwww.citycollege.ac.cy
  10. 10. - Economy The ADA reports that over half of those polled believe "organic"foods to be healthier. This, however, may not be enough forAmericans to purchase them regularly, as "sticker shock" fromcommon organic products has some wondering if they are worth it,reports the New York Times.Rising fuel costs, higher demand, supply shortages and productioncosts are all contemporary factors contributing to the price increasesfor both organically produced and standard foods.http://www.livestrong.com/article/342878-contemporary-nutrition-issues-insights/#ixzz2Ajz2ArU5 Hotel Management Program www.citycollege.ac.cy
  11. 11. Fast Food CultureIn 30 years, the number of hours worked by Americanshas increased by 20 percent, states the Journal of theAmerican College of Nutrition. With dwindling time,families find the "fast food" meal more convenient and,in some cases, less expensive than traditional homecooking.http://www.livestrong.com/article/342878-contemporary-nutrition-issues-insights/#ixzz2AjzcfLMF Hotel Management Program www.citycollege.ac.cy
  12. 12. More than 90 percent of Americans know thatinformation, but less than half have heard aboutprobiotics and allergen-free foods.http://www.livestrong.com/article/342878-contemporary-nutrition-issues-insights/#ixzz2Ak09qY3wSolutionsWith seven out of 10 Americans dying from chronicdisease these days, solutions are being addressed byorganizations like the Centers for Disease Control andPrevention and the ADA.http://www.livestrong.com/article/342878-contemporary-nutrition-issues-insights/#ixzz2Ak4oSGVe Hotel Management Program www.citycollege.ac.cy
  13. 13. •Future TrendsRecent research shows a trend toward group wellnesscoaching. Wellness coaching can not only improve healthfor individuals but may "leverage change" in the overallpopulationhttp://www.livestrong.com/article/342878-contemporary-nutrition-issues-insights/#ixzz2Ak5EJJby Hotel Management Program www.citycollege.ac.cy
  14. 14. Contemporary Diet and Concerns• Portion Sizes Some of the most startling evidence of the changes in contemporary diet lie in portion sizes. The typical portion size for a hamburger increased up to 223 percent from the 3.9 oz. burger in 1954. Portion sizes for an order of french fries increased nearly 200 percent from 1955 figures. These two examples point to a possible change in nutritional intake. With increased size of hamburgers and french fries comes a greater saturated fat intake. Over-consumption of saturated fats can increase your risk of developing atherosclerosis, or hardening of the arteries. Hotel Management Program http://www.livestrong.com/article/454528-contemporary-diet-and- www.citycollege.ac.cy nutrition/#ixzz2Ak6iqGwM
  15. 15. • Added Sugars• Americans passion for sweets is reflected in the amount of added sugars the average person consumes. The "Dietary Guidelines for Americans 2010" estimates that added sugars make up 16 percent of the current American diet, far higher than the recommended 10 percent. High consumption of added sugars can lead to weight gain and poor nutrition. Sugar consumption, like fat or cholesterol, can become addictive. This consequence has fueled the food industry as it tries to satisfy the American sweet tooth.• http://www.livestrong.com/article/454528-contemporary-diet-and- nutrition/#ixzz2Ak7DEZ00 Hotel Management Program www.citycollege.ac.cy
  16. 16. Fast Food Consumption• Another trend affecting diet and nutrition is fast food consumption. A 2003 study by Columbia University and the Obesity Research Center at St Lukes-Roosevelt Hospital in New York found that restaurant food consumption by children ages 6 to 11 increased almost 300 percent between 1977 and 1996. Its hard to deny the convenience that fast food offers.• http://www.livestrong.com/article/454528-contemporary-diet-and- nutrition/#ixzz2Ak7hDq1Q Hotel Management Program www.citycollege.ac.cy
  17. 17. Sodium Intake• The increased intake of prepared foods along with processed foods has brought about another change in the contemporary diet that might affect future cases of high blood pressure, or hypertension. The Centers for Disease Control and Prevention warns that the American diet contains far too much salt. Americans consume more than 3,400 mg of sodium each day, well more than the recommended 2,300 mg intake. With the increase in sodium comes a heightened risk for heart disease and high blood pressure. These trends might lead to changes in life expectancy for future generations.• http://www.livestrong.com/article/454528-contemporary-diet-and- nutrition/#ixzz2Ak8ApUV4 Hotel Management Program www.citycollege.ac.cy
  18. 18. The MenuMenu pricing need to fulfill two needs, for the caterer theneed to make adequate profits and for the customer theneed to satisfy getting value for money. Menu Pricing Styles Cost plus pricing Competition pricing Rate of Return pricing Elasticity Pricing Backward Pricing Prime Cost Departmental profit margins Differential profit margins Hotel Management Program www.citycollege.ac.cy
  19. 19. Menu ScheduleIt can be designed from Monday to Sunday onspreadsheet having the Lunch and the Dinnermenus. Hotel Management Program www.citycollege.ac.cy
  20. 20. Types of Menus• What are the different types of menu in a restaurant?• the types of menus at a restaurant can be: a static menu, a cycle menu, a market menu, a hybrid menu, an à la carte menu, semi à la carte menu and a table dhote menu. Read more: http://wiki.answers.com/Q/What_are_the_differe nt_types_of_menu_in_a_restaurant#ixzz2AoPZ 5z5X Hotel Management Program www.citycollege.ac.cy
  21. 21. What is menu planning?• Menu planning is the selection of a menu for an event. Such as picking out the dinner for your wedding or even a meal at a Birthday Party. Menu planning is when you are preparing a calendar of meals and you have to sit down and decide what meat and veggies you want to serve on each certain day. You also can plan reunions and wedding receptions like this. Sometimes it can be challenging.• It never ends.• Menu planning is ongoing process, dynamic process which meets the guest expectatios – present and potential Hotel Management Program www.citycollege.ac.cy
  22. 22. What are the factors to consider in menu planning?• Who is the menu for? Child, elderly, active person and what particular nutrients they would need. What type of menu is it, breakfast, lunch dinner, snack.. daily menu should include all four. Balanced using the food pyramid, adequate servings of all food groups. Variety is also key. Read more:• http://wiki.answers.com/Q/What_are_the_factors_to_consider_in_m enu_planning#ixzz2AoUSb3Qe Hotel Management Program www.citycollege.ac.cy
  23. 23. The Psychology of Menu Design• The menu is the most important internal marketing and sales tool a restaurant has to market its food and beverage to customers. It is the only piece of printed advertising that you are virtually 100 percent sure will be read by the guest. Once placed in the guest’s hand, it can directly influence not only what they will order, but ultimately how much they will spend. Menu design directly influences sales revenue. Management is constantly forecasting business volume to estimate how much to buy, keep in inventory, and prepare. A properly designed menu makes these kinds of decisions easier and more accurate. Hotel Management Program www.citycollege.ac.cy
  24. 24. The Psychology of Menu Design• A well-designed menu can educate and entertain the customer as well as be a communication, cost control, and marketing tool for your restaurant. The menu is designed to help the guest decide what to order. When you strategically place menu items on the menu, you will sell more of them than if you placed them randomly. Hotel Management Program www.citycollege.ac.cy
  25. 25. Evaluate Menus• The final process of nutricient analysis is to evaluate the menus and modify according to meet the nutrient standards. 1. Review the menus for variety 2. Evaluate how well the current menus meet the appropriate nutrient standards. 3. Review the portion of serving sizes Hotel Management Program www.citycollege.ac.cy
  26. 26. Menu Management software• Restaurant Food Cost Professional Software is a complete restaurant inventory software, menu and recipe cost software and also a great restaurant accounting software rolled into one great restaurant software program. This software has both a periodic inventory and also a perpetual inventory based on how you set it up. The restaurant accounting software has many useful features such as an invoice tracking program that keeps track of your invoices and expenses from all sources like food vendors, hood cleaning, equipment rentals and much more. The program with its restaurant menu software also has a menu and recipe costing feature that lets you set up your menu and recipe cost and keeps your food cost numbers correct and current all the times. With any change in price on any item in your restaurant inventory that is an ingredient in a menu item or recipe the cost of all items in the menu are automatically updated. Hotel Management Program www.citycollege.ac.cy
  27. 27. Standard Product Costs and Pricing Strategies What is the definition of a standard recipe?• A standard recipe is as its said..to standardize each dish..this is beneficial to consistency in quality and cost control.• What are the advantages to staff and customer of a standard recipe?. Consistancy and familularzation. Hotel Management Program www.citycollege.ac.cy
  28. 28. Standard Product Costs and Pricing Strategies What is the definition of a standard recipe?• A standard recipe is as its said..to standardize each dish..this is beneficial to consistency in quality and cost control.• What are the advantages to staff and customer of a standard recipe?. Consistancy and familularzation. Hotel Management Program www.citycollege.ac.cy
  29. 29. Menu EngineeringMenu engineering provides the manager withinformation about a menu item’s profitability, as well aspopularity, so that proactive planning, recipe design andcustomer pricing decisions can be made.Menu engineering is not a substitute for properpurchasing, food rotation, standard recipes or any of theother basic kitchen controls that can negatively impactyour costs.Rather it is a method of evaluating every item on yourmenu relative to its present contribution to bottom linedollars, thereby allowing managers to recognize the Hotel Management Programitems they want to sell! www.citycollege.ac.cy
  30. 30. Hotel Management Programwww.citycollege.ac.cy
  31. 31. Menu pricesIf they are too high; Sales SufferIf they are too low; Profits Suffer Hotel Management Program www.citycollege.ac.cy
  32. 32. Menu Prices1. Be directly related to costs2. Help product profitability3. Serve as a cost control tool4. Refresh realistic markups (the difference between a menu item’s cost and selling price) Hotel Management Program www.citycollege.ac.cy
  33. 33. Maximum allowable food costThe maximum allowable food cost figure determines thefood cost percentage an operation needs in order toachieve its profit objectives. It is calculated from theactual operating budget of the business.To calculate the maximum allowable food costpercentage, select a representative accounting periodand determine the amounts for:• payroll related expenses (salaries, wages, taxes, andfringe benefit)• overhead expenses (advertising, utilities,maintenance, other supplies excluding food costs).• Also include a target figure for profits before tax. Hotel Management Program www.citycollege.ac.cy
  34. 34. Actual Food CostThe actual food cost percentage appears onthe monthly income statement. This is the costof the food consumed by your customers, anddoes not include employee meals or spoilage.Although the actual food cost indicates whatthe food cost is currently running, it has littlevalue unless the operator knows what thetarget percentage should be. Hotel Management Program www.citycollege.ac.cy
  35. 35. Potential food costPotential food cost is a theoretical or ideal percentagewhich indicates what the food cost should be in aperfectly run restaurant, given the sales mix. It reflectsthe fact that the most popular menu items will have thegreatest influence on the overall food cost percentage.To calculate the food cost percentage of each dish:• Multiply the food cost per item with the number ofportions sold• Multiply the sales price by the number of portions sold• Add both columns and then multiply the total cost by100 and divide it by the total of the sales column.This will result in the potential food cost. Hotel Management Program www.citycollege.ac.cy
  36. 36. Standard food costManagement needs to adjust the potential food cost toinclude waste and spoilage that occurs during normalpreparation, as well as an allowance for complimentaryor discounted meals to employees and guests. Anacceptable variance will range from half to threepercentage points of food sales.The exact percentage is determined from managementstudies. The standard food cost percentage iscalculated by adding this variance percentage to thepotential food cost. Hotel Management Program www.citycollege.ac.cyThe difference between actual food cost and standardfood cost reflects inefficiencies that should have beencontrolled by management.
  37. 37. Standard recipes for beverages• Standard recipes must be established for each drink.It is straight forward for the basic types of liquor served, since a recipe is a standard portion. It is important for the staff to be familiarized. RequisitionsSome establishments use the daily requisitions, costed and totaled as a basis of calculating a daily beverage cost Hotel Management Program www.citycollege.ac.cy
  38. 38. Measuring devices• Two measuring devices are the shot glasses and jiggers.• The shot glass is generally used for the basic highball drink that the establishment serves.• The jiggers is usually of stainless steel and measures smaller quantities of ingredients Hotel Management Program www.citycollege.ac.cy
  39. 39. Establishing Drink Selling prices• Consider gross profit in pricing drinks• Drink selling prices are established to yield on overhaul desired beverage cost percent, in the same way as food- menu prices. Hotel Management Program www.citycollege.ac.cy
  40. 40. Interbar Transfer• In establishments with several bars, it is sometimes necessary to transfer beverages from one bar to another. Spillage Allowance Some establishments permit spillage allowance. This allowance aknowledges that it is not practical to expect that the liquor from a bottle can be accounted for down to the last drop. Hotel Management Program www.citycollege.ac.cy
  41. 41. Common Menu Pricing Methods •Your restaurant concept, that is, the type of food, service and ambiencehas a lot to do with the different challenges a restaurant owner might facewhen pricing menu items.Ideal Food Cost Pricing MethodThis method calls for an owner to consider the actual cost of a menu item,then consider his or her ideal food cost percentage. Ideal food costpercentage varies, but typically lies somewhere between 25 and 30 percent.The two are divided and voila, you have a menu item price. See the examplebelow: Hotel Management Program www.citycollege.ac.cy
  42. 42. Things to Consider Before Pricing• Direct costs• Indirect costs.• Preparation and labor.• Overhead expenses.• Volatile food costs.• Competition• Service type.• Pricing boundaries. Hotel Management Program www.citycollege.ac.cy
  43. 43. Thank you Hotel Management Program www.citycollege.ac.cy

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