Menu analysis engineering382
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Menu analysis engineering382
- 1. Menu Analysis & Engineering HRT383 By Dr. Ben Dewald
- 8. Contribution Margin Dollars vs. Food Cost Percentage $0.60 $3.00 $7.50 Cont. Margin $ 20% 25% 50% Food Cost % $0.15 $1.00 $7.50 Cost $0.75 $4.00 $15.00 Selling Price Coffee Fish Sandwich Steak Dinner
- 9. (7) Food Cost Percentage: (6) / (5) = (8) Total Contribution to Margin: (5) – (6) = (9) Average Contribution Margin/ Customer: (8) / (2) = (10) Contribution Margin per menu Item: (5) – (6) (2) Menu Engineering 39.93% $2,004.32 $7.03 $1,173.43 $3,177.75 285 320.51 712.25 45 12.95 55 Filet 285.98 922.50 31 10.25 90 Turkey 340.58 896.25 38 11.95 75 Beef $226.36 $646.75 35 $9.95 65 Chicken Total Food Cost (4) X (5) Total Sales (2) X (3) Food Cost Percentage Item Sales Price Number Sold Menu Item (6) (5) (4) (3) (2) (1) 7.12 7.07 7.41 $6.47 C/M (10)
- 11. Menu Engineering Analysis 100% 20% Popularity 0 Contribution Margin 7.03 8 *Filet (7.12/19.3%) Puzzle Dog Star *Turkey (7.07/31.6%) *Beef (7.4126.3%) Plowhorse *Chicken (6.47/22.8%)
- 13. Menu Engineering Analysis 100% 20% Popularity 0 Contribution Margin 7.03 8 *Filet (7.12/19.3%) Puzzle Dog Star *Turkey (7.07/31.6%) *Beef (7.4126.3%) Plowhorse *Chicken (6.47/22.8%)
- 19. Focal Points Single Sheet Menu Twofold Menu Focal Point Focal Point
- 20. Focal Points Focal Point Threefold Menu 4 5 2 3
- 24. Price Placement Swordfish Steak…..…$14.99 Lamb Steak………….$12.99 Lemon Sole………….$11.99 Baked Chicken……….$8.99 SWORDFISH STEAK Charcoal grilled served with beurre blanc $14.99 LAMB STEAK Center cut of lamb served on a bed of rice $12.99 LEMON SOLE Fresh filets sautéed with lemon caper sauce $11.99 BAKED CHICKEN Tender pieces of chicken breast $8.99
- 25. Price Placement SWORDFISH STEAK Charcoal grilled served with beurre blanc Fourteen dollars and ninety nine cents LAMB STEAK Center cut of lamb served on a bed of rice Twelve dollars and ninety nine cents LEMON SOLE Fresh filets sautéed with lemon caper sauce Eleven dollars and ninety nine cents BAKED CHICKEN Tender pieces of chicken breast Eight dollars and ninety nine cents
Editor's Notes
- For evaluating menus, several systems are available. Two of the most widely used methods will be presented here.
- One point to understand before delving into menu engineering is the theory of contributing margins.
- Note: Relationship between food cost % and contribution margin in $ is not consistent. An item that has a high contribution margin in $ does not necessarily have a low food cost %. Too often, management is led to believe that low food cost % are the primary objective. Not so, you can’t take % to the bank, you take money.
- Plowhorses If the market does not resist the price increase, this action will move a plowhorse into the star category. If market is price resistant, the item can be buried in a inconspicuous place on the menu in the knowledge that people will find these relative bargains anyway. Stars It may be possible to increase menu price and/or cut portion size to increase profits while maintaining volume Puzzles They need to be promoted more to stimulate sales. Dogs Prime candidates to be dropped from the menu. In the example; CHICKEN would be dropped from the menu, while the FILET would be promoted more heavily. The prices on the BEEF and the TURKEY might be raised a little and featured more visibly on the menu.
- In the example; CHICKEN would be dropped from the menu, while the FILET would be promoted more heavily. The prices on the BEEF and the TURKEY might be raised a little and featured more visibly on the menu.