1. Fundamentals of Menu Planning

2. The Purpose of Menus Planning Tool Establishes… Communication Tool
customer needs and expectations
Prices
Type of food
Service style
Worker’s skill
Required equipment
Competitors
Communication Tool
Informs customers about food choices
Influences customer choices
Creates an impression

3. Types of Menus

4. Fixed Menu Offer the same items everyday
Many neighborhood restaurants use fixed menus
Customers like it because they tend to have favorite dishes they order every time

5. A la carte
Customers can choose exactly what they want as a main course, side dish, appetizer, salad, or dessert
Offers freedom to mix and match
Often seen at upscale restaurants and hotels
Modified A la carte menus serve appetizers and desserts a la carte
Typically at causal dining restaurants

6. California A single menu listing breakfast, lunch and dinner foods
Offers the option to choose any item at any time of day
Popular with foodservice establishments open 24 hours
Also used in hotel room service

7. Du Jour Lists food only served that particular day Means “of the day”
“Soup du jour”
The next day a different du jour menu will be available
Some restaurants have a du jour menu in addition to a la carte menu

8. Table d'hôte
Offers a complete meal from appetizer to dessert and often includes beverage for a set price
Banquets are typically served in this style
Diners might choose in advance from four meals (beef, chicken, fish, or vegetarian)
Reduces production cost
Prix Fixe is the same except diners may be offered choices for one for more of the courses

9. Cyclical Written for a certain period of time and then repeats itself
Might repeat every three weeks
Could follow a seasonal cycle and change 4 x’s a year
Weekly cycle menus are particularly suited for family, casual, or neighborhood restaurants

10. Menu Planning Principles

11. Type of Place and Customers
Important to understand your customers and provide food that are appropriate for your type of place and your type of customer
Factors to consider:
Geography and culture
Economics
Population Density
Age

12. Facility, Staff, and Equipment Limitations
Consider the size of your dining room and kitchen
Consider staff knowledge and cost of training
Consider the equipment you have available

13. Balance and Variety Feature different cooking methods
Use different tastes and textures
Offer cold and hot appetizers, fish and chicken options
Offer special dishes for special needs guests like vegetarians or customers with allergies
Include recent food trends
Offer various price levels

14. Truthfulness
Truth in menu laws: designed to protect consumers from fraudulent claims related to food and menus

15. Truth in Menu Laws Quantity Quality Price Brand Names
Amounts and weights must be accurate
Quality
“Prime” meat must actually be prime
Price
Brand Names
Must be represented accurately
Product Identification
If it says it includes lobster, it must include lobster
Point of Origin
Merchandising Terms
Terms used to encourage must be accurate
Means of Preservation
Methods of Preparation
Verbal and Visual Presentation
Pictures must be accurate
Dietary and Nutritional Info

16. Organizing and Designing the Menu

17. Organization Menu categories are listed in the sequence they are eaten
Items are also organized within each category
Chicken entrees listed together

18. Design
Materials, colors, and images communicate your message as strongly as the words
Make sure the menu contains your restaurant’s vitals (name, address, and phone)
Design the shape and size of the menu so it is in keeping with your restaurant’s concept
Avoid too many photos inside the menu
Emphasize the items on the menu not their prices
Use print, not hard to read script

19. Writing a Menu Make sure language reflects concept
Make food sound attractive
Eliminate all unnecessary words
Do not use restaurant jargon
Make sure it is easy to read
Be positive

20. Pricing Menu Items
Pricing Methods

21. Pricing Terms
Food Cost: per portion cost of all ingredients in the dish
Operating Cost: cost of opening the doors
Rent, Mortgage, Utilities
Labor: employee salary
Profit: the amount of money remaining after expenses are paid
Margin: difference between profit and operating costs

22. Food Cost Percentage Method
Set the percentage of menu price the food cost must be, then calculate the price that will provide this percentage.
An accurate FCP will be different for each menu category.
Item Food Cost ÷ Food Cost Percentage = Menu Price

23. Contribution Margin Method
Works for a la carte menus and table d'hôte
Uses operation-wide data to determine a dollar amount that must be added to each major menu item’s food cost.
Total Operating Costs ÷ # of Customers = CM
Contribution Margin + Food Cost = Menu Price

24. Straight Markup Pricing
Managers mark up the costs according to a formula to obtain the selling price.
The markup should be large enough to cover operating costs and profit.
Each item is priced to help pay for operating costs.
Labor + Overhead + Food Cost + Profit = Markup

25. Average Check Method
Managers divide the total revenue by the number of seats, average seat turnover, and days open in one year.
This results in an average check amount
Gives an idea of the price range of items on the menu
The price range can determine each item’s selling price.

26. Set Dollar Amount Markup
Simply adds a fixed dollar amount to the food cost of an item
Food Cost + Markup = Menu Price

27. Set Percentage Increase Method
Builds on a set dollar amount market method – once set dollar amount is determined, managers determine what percentage it is in comparison.
Food Cost × Percentage = Markup
Markup ÷ Food Cost = Percentage

28. Give it a try…
Menu pricing practice

29. Menu Classifications Stars (menu celebrities) Popular and Profitable
Leave these items alone – place them in the prime space of the menu
Less price sensitive

30. Menu Classifications Plow Horses Popular but less profitable
Often reason for restaurant’s success (customers see it as a good value)
Highly price sensitive

31. Menu Classifications Puzzles Unpopular but very profitable
Help it out by decreasing the price or repositioning it on the menu or renaming it
Even if it is not selling well, it is making a lot of money (relatively speaking).
If sales can be increased without decreasing the price, it can easily become a STAR!

32. Menu Classifications Dogs Unpopular and unprofitable
Eliminate from menu if possible
Can be difficult if it is a influential guests favorite item
In that case, leave it off the menu and only carry it in inventory – can be made to order by request and charge the guest more.