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www.ritz.edu
Menu Planning                  &             Menu DesignMenu Analysis          Using the Menu      &                      ...
Menu Planning     &Menu Design  cont…
Recap of this  morning
Why is the menu the most important planning andmarketing tool of every food    service operation?
What are the priorityconcerns of a menu     planner?
Menu BalanceBusiness   Aesthetics
Menu DesignWhat should a well designed      menu achieve?What questions need to beconsidered when designing        the menu?
Menu Design  What issues need to beconsidered with Menu copy?Menu item descriptions?  Do descriptions sell?
Questions from this morning
Menu Design     Supplemental    MerchandisingWhat additional materialcould/should be included     on my menu?
Hours, Meals                 Served            Reservation Policy             Payment Policy Address                      ...
Menu DesignPlanning and Layout?
Correct SequenceEasy to         of Dishes        House Read                          Specialities                         ...
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 ...
Menu Analysis      & Profitability
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 f...
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                       ...
Once performance objectives are set a simple performance table can be created to measure actualresults against the objecti...
Performance Table    Revenue                  Goal               Actual         Variance    Performance                   ...
What issues did theexample raise in terms of business performance?
What are           What are               What     the key           the key            issues need    negative           ...
When evaluating a menu what questions do we    need to ask?
Have guests                  Have guestscomplimented                  complained  the menu?                    about the  ...
Are the menu                          Is there too items laid out                         much / notin an appealing       ...
Has the            Are the menuaverage check          items priced   remained              correctly?    stable, increased...
Maximising Profit from the Menu
The only real way tomaximize profit from amenu is to ANALYSE     the SALESperformance of each  menu item over a   period o...
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 m...
How is        POPULARITY         measured?                         Measure thisSales                   against a pre-     ...
How is               PROFITABILITY                 measured?Contribution                    After materialMargin (CM)     ...
QUESTIONCM is                 Which item is                CM is$6.50            the better one               $7.50       ...
What happens     when POPULARITYIs combined withPROFITABILITY?
Popular                    PopularBUT NOT                        &Profitable                 Profitable              4 way...
HIGH             Popularity                                    horse             star       LOW                           ...
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                      ...
Extending thebasic concept to an   entire menu
To accurately analyse        an entire menu it must         be separated into its         key course offerings            ...
What information is         required for each            menu item?Food Cost      Selling Price Number sold  (FC)         ...
Measuring              PopularityEach menu      Expected        An item is   item is     Popularity     POPULAR ifassumed ...
Measuring                 ProfitabilityCalculate theContribution                             An item isMargin (CM)       C...
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: S...
Can this sameprocedure be  applied to Beverages
What does astandard recipes   consist of?
Summary of                   Ingredients   Required                  Cost of each itemquantity of each             and cos...
Why are standard   recipes soimportant from abusiness point of     view?
Accurate Food                    Less  Cost of the dish            supervision as                               guesswork ...
In order to engineer    and analyse a menu we        must have built in       control procedures Ingredient   Standard    ...
What FACTS do wewant to obtain whena menu is analysedfrom a control point      of view?
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Analisis De Menu

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Analisis De Menu

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

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