About F&B Service ini Hotel Business

1. FOOD & BEVERAGE
SERVICE THEORY
Week 2 – Menu Planning & Menu pricing
Novny Andryani S.

2. Nama Mata Kuliah - Kode Mata Kuliah
MENU PLANNING
Definition
Types of menu
Importance of
menu Planning
Factor to consider
menu planning
Menu Pricing

3. DEFINITION-MENU
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1. A menu is a presentation of detailed lists of food items
2. A menu in any food service organization is considered as
the most important planning control tool to run a food service
operation.
3. The word "menu," like most of the cuisine terms, has a
French origin. It comes from the Latin word"minutus," which
means "to make little," and itwas first used in French to refer
to a thoroughlist or résumé of any kind.

4. TYPES OF MENU
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1. Table d’hote Menu
Food item grouped & sold for one price,
2. A La Carte
Food item priced individually
3. Menu by meal times
- Breakfast Menu : Continental Breakfast, English
breakfast, American breakfast, Indonesian breakfast
- Lunch Menu
- Dinner Menu
4. Menu by specialty
- Cocktail Party Menu,
- Wedding party, etc

5. TYPES OF MENU

6. IMPORTANCE OF MENU PLANNING IN HOTEL
1. GOOD HEALTH
When you plan a menu, you can make choices for your personal health and
fitness needs. Menu planning plans exist simply to provide how a single person
meal plans based on their own preferences and needs.
2. SAVING MONEY
When you cook and plan your own meals, you are most likely saving money
when purchasing the same type of meal in a restaurant.
3. NO WASTAGE OF TIME
Everyone is different, and everyone’s needs are different. Always plan your
meals to save yourself the time you want. Pick your busy days, and make those
meals the most simple or prepared ahead to help you.

7. CONSIDERATION IN MENU PLANNING
1. CAPABILITY & CONSISTENCY
The capability of the chef or cook to produce the quality & quantity of food necessary is a basic
consideration. The use of standardizes recipe & cooking procedures will help ensure consistency.
2. EQUIPMENT
On order to produce the desired menu items, the proper equipment must be installed in an efficient layout.
3. INGREDIENT AVAILABILITY
High quality ingredients, make a high quality product.
4. PRICE
Price is the major factor. Food cost and portion size & control are the best indicators of the price to charge
for the dishes on a menu
5. NUTRITIONAL VALUE
6. MENU TRENDS
7. ACCURACY IN MENU
Must be accurate and truthful when describing dishes on the menu, menu accuracy in menu description
such as spicy, marinated, fresh, etc

8. MENU PRICING
Menu pricing is the engine behind your company's success, as sales are your restaurant's sole source of
revenue.
Pricing for food directly impacts your ability to fund essential aspects of your business, including equipment,
utilities, labor, ingredients, and more.
Menu pricing is a careful calculation of what it costs to prepare a dish, along with other expenses, to arrive at
a final price that allows for those costs to be covered and a profit to be made. The pricing of a menu is “art of
pricing”. The successful management analyses the food cost and other overheads, the guest’s ability to pay
for the menu, and competitors’ menu pricing before fixing the menu and its prices. Usually, the menus are
priced by the General Manager, Chef, Food and Beverage Manager, Sales Manager, Purchase Manager. Every
factor-like food cost, raw material price, competitor’s menu price, guest ability to pay, etc. are considered
while fixing the price.

9. HOW TO CALCULATE RESTAURANT MENU PRICES BASED ON IDEAL
FOOD COST PERCENTAGE
1. Choose your ideal food cost percentage.
Your food cost percentage is the portion of sales spent on food. The average food cost
percentage for most restaurants is in the range of 25-35%. Many restaurants aim to lower their
food cost which will naturally turn more of your sales into pure profit.
2. Determine the raw food cost of the menu item.
For example, if you are serving a chicken Caesar salad dish, add up the total cost of the chicken,
dressing, lettuce, parmesan cheese, and anything other ingredients used to make the dish. Raw
food cost is similar to your cost of goods sold (COGS).
3. Calculate your price.
Use the following equation: Price = Raw Food Cost of Item / Ideal Food Cost Percentage. You
can slightly alter the price to make it a rounder or cleaner number. In the example below, you
could change it to a number such as $14.50.
Example: Say your ideal food cost percentage is 28%, and your raw food cost is $4. The complete
equation will be as follows: $14.29 (Price) = $4.00 (Raw Food Cost of Item) / 28% (Ideal Food Cost
Percentage). The price you will use for your menu will be $14.29.

10. How to Calculate Restaurant Menu Prices According to Ideal
Gross Profit Margin
1. Choose your ideal gross profit margin. Gross profit margin is a percentage
that represents the profit made from your sales. A 40% gross profit margin
on a dish means that a restaurant earns 40 cents on the dollar for this
specific dish. The rest goes towards the cost of the ingredients and your
restaurant’s other expenses.
2. Calculate your price. Use the following equation to find your price based on
your desired ideal gross profit margin: Ideal Gross Profit Margin = (Menu Price
– Raw Food Cost) / Menu Price
Example: Say your ideal gross profit margin is 72%, and the raw food cost is $4. Your equation would appear as follows:
72% = (Menu Price – $4/)Menu Price. The complete equation after solving for the menu price will look like the following:
72% = $14.5 - $4 / $14.5. In this example, the price you will choose for your menu is $14.50.

11. How to Calculate the Gross Profit Margin of Your Existing Menu Prices
1. Choose an item on your menu.
Insert the price of the item into the equation. Gross Profit Margin = (Menu Price – Raw Cost)/Menu
Price
Example: Say your menu price for a chicken Caesar salad is $14.50 and your raw food cost if $4.
($14.50 - $4)/$14.50 = 72% Gross Profit Margin. This restaurant earns 72 cents on the dollar for
every Caesar salad, which is quite a high gross profit margin.
2. Gross Profit Margins Determine Your Bottom Line
Gross profit is an essential part of the equation that determines your net profit, otherwise known as
your bottom line.
The equation below shows you how to determine your net profit:
Gross Profit – (Labor Cost + Operating Costs) = Net Profit/Loss
As you can see, the greater your gross profit, the more you may have left over after deducting labor
and operating costs.
Therefore, it’s important to make sure you have high profit items and to sell these items specifically.

12. Essential Tactics to Effectively Price Your Restaurant Menu
1. Competition Pricing Method
This method utilizes the prices of your local competition or in the general market as a baseline to consider your price. Based on your type
of restaurant, you can choose from the following competition-driven methods:
- Price your item the same as your competitor’s. This is most effective if your restaurant is mainly competing based on your unique
brand.
- Price your item lower than your competitor's. This is ideal if you operate more casual restaurant or if it caters to those looking for a
cost-effective alternative.
- Price your item higher than your competitor’s. If your restaurant is a high-end, upscale spot or if it attracts a demographic of diners
looking for high quality, a higher price gives off the necessary impression.
2. Demand-Driven Pricing Method
Based on the demand for your restaurant and specific food options, you can potentially raise prices. If you have an enticing ambiance and
brand or if your restaurant offers unique and especially delicious food options, you can raise your prices. The demand for your business
will naturally be higher because you offer food and/or an atmosphere that guests cannot get elsewhere.
3. Menu Psychology: How to Sell High Gross Profit Margin Items
Using menu psychology and menu engineering, you have a greater chance of selling your high gross profit margin items. Below are some
tips to focus on these items,
- According to studies, customers are likely to order one of the first items they notice on the menu. As such, it’s essential to direct your
guests’ attention to your high profit margin items right away.
- Guide the attention of your guests towards your high-profit items with a graphic, colored or shaded box, or border. However, only
highlight one or two items per category on your menu to avoid an overwhelming menu appearance.
- In each section on your menu, place your profitable items at the top and bottom of the list. Studies show that people more often
notice and order the top two or last item in a section.
- Place high profit margin items in the center, top right, and top left corner of your menu. This is called “The Golden Triangle” by
psychologists, and it refers to the places our eyes tend to go when first looking at a menu.
In addition to utilizing menu engineering and menu psychology, you can also have your servers point out and describe certain dishes over
others to entice guests to choose those items.

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