1. Y2.U7.3 Menu
What is a Menu?

2. Function does a menu serve Are the different types of menus
What?
Function does a menu serve
Are the different types of menus
Factors must be considered when creating a menu
Are various methods used to price a menu
Is needed to analyze a menu

3. What is a menu?
For customers, a list that describes the food and drink offered
For the foodservice manager it is a strategic tool that defines the purpose of the restaurant and every phase of its operation

4. Essential Tool
The menu is an important working tool used to plan, organize, operate, and control back-of-the-house operations
The menu is a published announcement of what the restaurant has to offer
The menu is the most important communication tool for the foodservice operation

5. Menu as Tool
The menu defines the purpose, strategy, market, service, and scene of an operation
The menu defines the type of employees and servers required
The menu defines the amount of training all employees will need

6. Menu as Tool The menu is a production plan
The menu is a guide to purchasing
The menu serves as a service schedule for employees
The menu is the most important advertisement for the restaurant
The menu helps to sell items

7. Menu/Market The menu should reflect the market
Type of restaurant, target customers, customer needs, product availability

8. Commercial/Noncommercial
Commercial includes any type of operation that sells food and beverages for profit: full-service restaurants, quick- service chains, hotel restaurants, etc.
Noncommercial are those operations and that operate food services to support the actual purpose of the establishment: space schools, colleges, airlines, and hospitals

9. Menu Types A la Carte: offers food separately that separate prices
Cyclical: normally institutional or non- commercial, a menu made for certain time periods that repeat
California: lists all meals available at any time during the day

10. Menu Types Du jour: “of the day,” offers different foods each day
Limited: offers a few selections, used often by quick-service restaurants and cafes
Fixed: same items every day (supplement with du jour)

11. Menu Types
Prix Fixe: Offers multiple menu items at one price, often a choice of app, entrée, dessert
Table d’hôte: Very similar to Prix Fixe, but price is based on entrée.

12. Menu Order
Usually appetizers and soups, salad, sandwiches, entrées, vegetables, desserts, beverages
Variety is important to customer satisfaction and can be achieved within classifications by using different cooking methods, tastes, textures, and seasonings

13. Menu Development Factors
Physical layout, space
Skill level and number of employees
Availability of ingredients
Target market wants and needs
Target market expectations of offering and price
Profit margin

14. Menu Development List all possible items Eliminate items
Tailor items to fit customers, cuisine, and theme
Choose items within the price range that can be prepared well
Make final selections for the printed menu
Save rejects for possible future use

15. Design Medium Paper stock: heavy (fancy), lightweight (casual)
Menu Board: Chalk, letter, electronic
Spoken, memorized
Layout
How the menu is categorized and sequenced adds to the identity of the operation: one page, many, hectic, subdued

16. Design
Color
Colors offer an emotional element to identity: from sophisticated to rowdy; blue/green for seafood, red/orange for BBQ
Font
Can highlight: italic, Bold
Can signal personality: formal, casual, classical, modern
Readable

17. Design
Art
Straight/angled borders or curvy: images; cars/diner, flames/BBQ

18. Pricing Food Percentage Method Often different for each menu category
Set the percentage of menu price food cost will be (33% )
Item food cost ÷ Food cost percentage = Menu Price
$0.75/.33=$2.27

19. Pricing Contribution Margin Method
Operation wide data to determine a dollar amount that must be added to each menu item’s food cost
2 steps:
(total nonfood cost + target profit) ÷ Number of Customers = Contribution Margin
Contribution margin + food cost = menu price

20. Pricing Straight Markup Pricing
Markup the costs according to a formula to obtain selling price
Margin is defined in terms of selling price
Markup is determined in terms of costs
Should be enough to cover operating costs and a profit

21. Pricing Average Check Method
Divide total revenue by the number of seats, average seat turnover, and days open in one year

22. Pricing Set Dollar Amount Markup For use with major menu items
Adds a fixed dollar amount to the food cost of an item
Food cost + Markup = Menu price
Markup = Profit per menu item + Labor cost per menu item + Operating cost per menu item

23. Pricing Set Percentage Increase method For use with major menu items
Builds on set dollar markup by determining what the percentage is in comparison to the items’ food cost
Food cost ⨯ Percentage = Markup
Markup ÷ Food cost = Percentage

24. Q-Factor
Accounts for misc. items such as s&p, butter, ketchup, sliced lemon, etc.
List items, determine amounts, determine costs, add in cost

25. Analyzing The Menu
Important to analyze how well each item on menu is performing after the operation has open some time (3 months).
Look at sales volume and calculate the sales volume percentage by comparing each items’ sales against total sales
A sales mix analysis indicates the popularity and profitability of each item
This allows decisions about which menu items to leave alone, change price, promote, rethink or eliminate
Think about why

26. Analyzing The Menu
Star: popular and profitable, generally leave alone, test increasing price or methods to sell more
Plow horse: popular less profitable, possibly raise price but are often sensitive price increases
Puzzle: unpopular and very profitable, reposition, promote, sample- possibly lower price
Dog: unpopular and unprofitable, eliminate, increase price to puzzle

27. Analyzing The Menu BakeCartAna A B C D E F G H ItemName # Sold
Menu Mix %
Selling Price
Item Food Cost
Item Contri-bution Margin (D-E)
Total Revenue (BxD)
Total Food Cost (BxE)
Total Item Contri-bution Margin (G-H)
Contri-bution Margin Category
Menu Mix % Category
Menu Item Class
Cup Cakes 48
0.119
0.75
0.33
0.42 36
15.84
20.16 1
Plowhorse
Truffle 47
0.116
0.67
15.51
31.49
Star
Muffin 29
0.072
0.18
0.57
21.75
5.22
16.53
Foggie 44
0.109
0.5 22
Sourdough 8
0.02 2
0.6
1.4 16
4.8
11.2
Puzzle
CinnamonBun
1.25
0.46
0.79 55
20.24
34.76
Xcookie
0.12
0.375
0.255
Doughnut 42
0.104
0.23
0.52
31.5
9.66
21.84
Brownies 41
0.101
0.29
30.75
18.86
11.89
Pepperoni Rolls 33
0.081
0.34
0.66
11.22
21.78
Potato Rolls 11
0.027
0.09
8.25
0.99
7.26
Potato Rolls (4) 24
0.059
0.41 12
2.16
9.84
Friands 34
0.084
0.21
0.54
25.5
7.14
18.36
Total
405 13
338.75
133.64
205.11
H/G
Average Contribution Margin
Mix Percentage Rate