1. Marketing and the Menu Chapter 7

2. Chapter 7 What is a market? Customers
What is marketing? A way of communicating a message to a market
Is there a difference between marketing and advertising? Advertising is one part of marketing – marketing is much bigger than just advertising

3. Contemporary Marketing Mix Marketing Activity for Restaurants
Product-service mix – food and services offered to customer.
Presentation mix – elements that make the operation look unique(color, lighting, furniture, decoration, uniforms, etc…)
Communication mix – Ways an operation tries to communicate with desired customer.

4. SWOT Analysis – for understanding current situations and looking for new opportunities.
Strengths
Weaknesses
Opportunities
Threats
Where does this place excel
Places to improve
(boring menu, dirty facilities, poor service, poor reputation)
Ways to increase revenues or decrease costs
(delivery, take out, kid’s menus, volume discounts from supplier)
Factors outside the operation that could decrease revenues or increase costs
(competition, product cost, road construction)

5. Market Research Methods
Experimental – try a product for a limited time or to a limited group.
Observational – Observing how customers react in a natural setting toward a product.
Survey – Gather information on a questionnaire – examples??
Sampling – Focus group, sampling trial

6. Marketing Communications
Advertising: paying to promote products, services or identity. Advertising options?
Sales Promotion: limited incentives to get customers. Examples?
Personal selling: Key to financial success – well trained staff
Public Relations: how an operation interacts with the community. Examples?
Direct Marketing: connecting with certain segment of the market. How?

7. Types of Menus A la carte Offers food separately at separate prices
Du jour
“of the day” changes daily
Cyclical
Repeated – institutional food services
Limited
Few selections – quick service restaurants
Fixed
Same items every day
California
All meals any time
Prix fixe
Complete meal grouped together for a single price
Table d’hote
Complete meal but choices of appetizers, entrees, desserts, etc… Set single price

8. Five Steps to Menu Planning
List all possible items
Eliminate items that are difficult to purchase, prepare or serve
Fine-tune remaining items to fit operation
Make sure all items can be successfully prepared at an appropriate price
Identify winning selections and create your menu

9. Menu Engineering A
Menu Item B
# Sold
Menu Mix C
Menu Mix %
B/N D
Item Selling Price E
Food Cost Per Item F
Contribution Margin
Overhead & Profit
D-E G
Total Menu
Revenue H
Total Food Cost I
Contribution
Margin
TOTAL
G-H or
F x B J
Category K
Menu Mix Category L
Classification
Chinese Chicken Salad
210
6.85
2.05
430.50
Mexican Pasta Salad 63
4.50
1.36
283.50
85.68
Mexican Taco Salad
390
6.00
1.77
690.30
Twisted Chicken Salad
140
4.00
1.16
560.00
162.40
Sweet and Sour Meatballs
277
6.25
1.86
515.22
Pasta Provencal 80
5.50
1.63
440.00
130.40
Honey glazed Chicken Stir Fry
440
1.35
594.00
Totals N
1600 M
(J) – M_____________/ N______________ = Average Contribution Rate, DOG – low contribution margin, low menu mix (low sales, low $$)
if F is above the average J is High if F is below the average J is Low PUZZLE – high contribution margin, low menu mix (high sales, low $$)
PLOW HORSE – low contribution margin, high menu mix (low sales, high $$)
STAR – high contribution margin, high menu mix (high sales, high $$)

10. Menu Descriptions Entice us to buy the food
Lead us to expect it will taste great
Chocolate Cake
Belgian Black Forest Double Chocolate Cake

11. Which menu is better? Red Beans & Rice Seafood Fillet Grilled Chicken
Chicken Parmesan
Chocolate Pudding
Zucchini Cookies
Traditional Cajun red beans with rice
Succulent Italian Seafood Fillet
Tender Grilled Chicken
Home-Style Chicken Parmesan
Satin Chocolate Pudding
Grandma’s Zucchini Cookies

12. Four Basic Themes
Geographic Labels- Tex Mex Salad, Kansas City Barbeque
Nostalgic Labels-Grandma’s Chicken Fricasse
Sensory- Velvety Chocolate Mousse, Smooth, silky
Brand Labels- Jack Daniels Glazed Ribs, Butterfinger Blizzard, Black Angus Beef Burger