39. Total Food cost percentage%
29.89%
Totals
$11,281.40
$37,740.00
Degustation menu
Standard Recipe Card
Name of dish:
Beef tendrolin
Portion nos.:
25
Ref.source:
50. Item
Specification
Weight kg/l/Unit
Cost per kg/l/Unit
Actual cost
Potatoes
Brush
5.625
Kg
$3.00
Kg
$16.88
Tomatoes
Riped
2.025
kg
$8.67
kg
$17.56
spices
Cut into 4cm
4.900
kg
$4.90
kg
$24.01
Red Onion
Sliced, Round
0.355
kg
$3.50
59. Item
Specification
Weight kg/l/Unit
Cost per kg/l/Unit
Actual cost
Potatoes
Brush
5.625
Kg
$3.00
Kg
$9.88
Tomatoes
Riped
2.025
kg
$8.67
kg
$11.56
Zuchini
Cut into 4cm
4.900
kg
$4.90
kg
$14.01
Red Onion
Sliced, Round
0.355
kg
$3.50
kg
$1.24
Olive oil
67. Cost per kg/l/Unit
Actual cost
mushroom
Brush
5.625
Kg
$3.00
Kg
$15.88
Tomatoes
Riped
2.025
kg
$8.67
kg
$14.56
herbs
Cut into 4cm
4.900
kg
$4.90
kg
$24.01
olives
Sliced, Round
0.355
kg
$3.50
kg
$1.24
cinnamon
Extra virgin
0.179
lts
80. Total Food cost percentage%
29.73%
Totals
$15,274.60
$51,383.50
3=
SCENARIO
The above statistics derived from the eight menus provide us
with several insights about the foods (Vincent & Seontaik,
2016). For example, the total amount of goods sold column is
used to predict the future sales of certain foods contained in the
menus. Therefore, the information is highly valuable for the
restaurant when organizing the kitchen workers to prepare the
predicted amount of items and when ordering supplies
(Kimberly, 2016). Moreover, these statistics can also help the
restaurant to predict the items popularity thus helping in
calculating the contribution margin of every item. The average
contribution margin is calculated and compared with
contribution margin of each item in the menu (Hung-Che &
81. Zurinawati, 2015). In the example menus above, the average
contribution margin can be calculated as shown below.
The average contribution margin of the example menus above is
calculated by the below formula:
Average Contribution margin=Total Contribution Margin÷ Total
number of Sales
= $415.25 ÷ 50
= $8.31
Nonetheless, the Contribution margin of every item in the menu
is often calculated by taking the cost of an item away from
item’s selling price (Bahattin & Osman, 2015). In this respect,
the contribution margin in the menus above is calculated as
follows:
Contribution margin of every item=$618.50-$203.25
Contribution margin of every item=$415
In this regard, the Victoria Sponge Cake, coffee, Fruitcake and
Coffee Cake, Breakfast
Victoria Sponge Cake, coffee, Fruitcake and Coffee Cake,
Victoria Sponge Cake, coffee, Fruitcake and Coffee Cake are
below the average contribution margin. Nonetheless, the first
three items on the menus are good sellers meaning they account
of over 30% of the total cost of the menu. This therefore means
that these items are more likely to slightly increase in weight if
their prices are slightly increased as well (SooCheong &
DongHee, 2015). Also, adding only $1 to the menu prices
especially of each item would make each item’s contribution
margin to be closer to $9 and above.
Consequently, as is observed above, the main course is
fundamentally higher than the average contribution margin, but
it is on the other side smaller than in sales. Therefore, the best
thing to do is to remove this item from the menu and substitute
it with another thing (SooCheong & DongHee, 2015). The
Profiteroles on the other hand has an excellent average
Contribution margin even though their sales are slightly below
the expected amount.
Moving forward, the restaurant will increase the sales of its
82. menu items by giving some foods such as the Vanilla Slices,
Cream Doughnuts and Doughnuts a more prominence or offer
them as part of the items alongside salad to increase the entire
food sales. Nonetheless, as long as the excesses are inexpensive
and have sensible cost percentages when compared with the
portion cost of Sponge Cake, coffee, Fruitcake and Coffee Cake,
then increase in sales will apparently have a positive impact on
the contribution margin.
Profitability
In case the restaurant would want to sell items that would yield
higher profitability, it must strive to increase the items
contribution margin and the average contribution margins also
all items, and all are also functions of profitability (Vincent &
Seontaik, 2016). Taking the selling price of each menu item and
subtracting the standard cost of food from it would give us the
contribution margin. This cost comprises of profit, the cost of
doing business and the total amount of money that the item
contributes to the labor costs. In this respect, all the
restaurant’s appetizers and desserts are likely to have little
contribution margins as compared to the menus’ entrées
(SooCheong & DongHee, 2015). The reason is that these items
are generally sold at the lower prices as compared to the main
course meals. This makes them unable to contribute a big dollar
value of contribution margins. Nonetheless, the items’ food cost
might fetch little prices that cannot contribute to the similar
value of contribution margin. Therefore, it would be important
to the restaurant to add certain items to its purchase to increase
the average cheque size.
Marketing Coursework 3
Wednesday 20th November, 2019 - 15% contribution to CW
(5% presentation, 10% document)
Your team works for a company called TCI Marketing Experts,
who has just asked you to develop a new product to be marketed
83. within the Turks and Caicos Islands. The company is in its fifth
year of operation and its growth strategy is to expand
throughout the Caribbean, island by island, with diverse and
sustainable products for the persons living and visiting there.
A. Identify and explain all eight (8)steps in the New Product
Development Process (32 marks – 1 mark for each identified
and 3 marks for each explained)
B. Based on the above, come up with two (2) new products
using the first step, identify for each: the target market, the
customer proposition, the competition, the development time
and earning potential. (30 marks, 3 marks each item, 15 marks
total for each product, if no completion exists then redistribute
marks)
C. Using the R-W-W framework in the second step of the new
product development process, narrow the three (3) products
down to one (1). (15 marks, 5 marks for group’s explanation on
each letter)
R-W-W (“real, win, worth doing”) new-product screening
framework that asks three questions. First, Is it real? Is there a
real need and desire for the product and will customers buy it?
Is there a clear product concept and will such a product satisfy
the market? Second, Can we win? Does the product offer a
sustainable competitive advantage? Does the company have the
resources to make such a product a success? Finally, Is it worth
doing? Does the product fit the company’s overall growth
strategy? Does it offer sufficient profit potential? The company
should be able to answer yes to all three R-W-W questions
before developing the new-product idea further
D. Clearly identify and explain the marketing mix strategy. (12
marks, 3 marks for each P which explains how the product will
be priced, developed, distributed and promoted)
E. Other marks will be allocated as follows:
Grammar – 3 marks
Proper APA referencing – 2 marks
Executive Summary – 2 marks
Introduction – 2 marks
84. Conclusion – 2 marks
Total 100 marks for written document – 10%
Presentation – 30 marks – 5 %
No more than 15 slides, 20 minutes each.
EVALUATION ITEMS
(5 marks each)
i. Effective introduction
ii. Clarity in responses
iii. Effective use of visual aids
iv. Demonstrated understanding
v. Effective conclusion
vi. Delivery of content (presentation skills)
TOTAL: 30 ( )
Src TemplateStandard Recipe CardName of dish:Spanish Vegie
Tray BakePortion nos.:50Ref.source:Total Cost:$252.89Portion
size.:150Portion Cost:$5.06Sales Price at $20.0030%( Food
Cost)Desired Sales Price$16.86Desired Food Cost %30.0%Sales
Price$20.00Food Cost
%25.3%CommoditiesItemSpecificationWeight kg/l/UnitCost per
kg/l/UnitActual
costPotatoesBrush5.625Kg$3.00Kg$16.88TomatoesRiped2.025k
g$8.67kg$17.56ZuchiniCut into 4cm4.900kg$4.90kg$24.01Red
OnionSliced, Round0.355kg$3.50kg$1.24Olive oilExtra
virgin0.179lts$10.00lts$1.79Oregano
leavesDried0.105kg$256.00kg$26.88Sweet
paprika0.052kg$20.00kg$1.040.0$0.000.0$0.00GREEN OLIVE
PICADA0.0$0.00Green olivesPitted,
rinse0.688kg$13.04kg$8.97Smoked
almondsChopped0.750kg$17.50kg$13.13Fresh
parsleyFresh0.750kg$187.00kg$140.25GarlicChopped0.050kg$1
6.67kg$0.83Red wine
vinegar0.052lts$6.00lts$0.310.0$0.000.0$0.000.0$0.000.0$0.00
Total Cost$252.89Portion Cost$5.06