CHAPTER 4 - THE MENU AS A CONTROL AND MARKETING TOOL


The menu as a control and marketing tool
Ò  Menu is the primary sales tool for any restaurant operation.
Ò  Menu must:
  1. Satisfy guest expectations
  2. Achieve quality goal
  3. Cost effective
  4. Must be accurate
Menu planning
Ø  Know your guest – food preference, price and age
Ø  Know your operation – know the theme or cuisine, equipment, personnel, quality standard and budget
Ø  Menu design – must have theme, interior décor, design (merchandising), creativity, material, colour and space.

Formula
Ä  Budgeted food cost % = allowable food / forecasted food sales
Ä  Selling price = item’s standard food cost / desired food cost percent

Simple mark up pricing method
1)      Determinate the ingredient cost
2)      Determinate the multiplier = 1 / Desired food cost%
3)      Establish a base selling price = Ingredient cost x Multiplier

Basic menu engineering process
v  STAR – item that are popular
v  PLOWHORSE – item that are not profitable but popular
v  PUZZLE – item that profitable but no popular
v  DOGS – item that are neither profitable nor popular

Formula contribution margin
Ä  Average contribution margin = total contribution margin / total number of item sold

Defining popularity
Ò  Popularity index defined as the ratio of portion sales for a given menu item to total portion sales for all menu items.
Ò  Popularity index = portion sales for item / total portion sales all the menu

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