Transcript Marketing and the Menu

Marketing and the Menu
Chapter 6
What is a Menu?
6.1
The Menu as a Tool
• Menu is the most important document that
defines the purpose, strategy, market,
service, and theme of an operation.
– Menu should help sell items to the customer
– Menu is a guide for purchasing
– Menu is also most important advertisement for the
restaurant
– Also the use of specialty menus
– Before writing a menu for an establishment, menu
planner must know the important characteristics of the
operation
» Who are the customers, food they serve, purpose of
the operation etc.
Menu Cont.
• Menus are planned different depending on
the foodservice operation
– Commercial = includes any type of operation
that sells food and beverages for a profit, such
as full-service restaurants, quick-service
chains, recreational sports centers, and hotel
restaurant.
– Noncommercial = establishments are generally
those operations that operate food services to
support the actual purpose of the establishment
ex. schools, colleges, airlines, and hospitals
Types of Menus
• A la Carte
• Food sold individually
• Cyclical
• Rotating menu (used in institutions etc)
• California
• Menu lists all meals available at any time during the day
• Du jour
• Menu offers different food each day
• Limited
• Menu offers few selections, used by quick-service and cafes
• Table d’hote
• Menu offers a complete meal of several items grouped together
for a single price
The Order of Courses
• Most menus organize foods according to the
orders in which they are eaten
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Appetizers and soups
Sandwiches
Salads
Entrees
Vegetables
Desserts
Beverages
• Foods within a major classification should be
prepared using a variety of cooking methods
• Entrees can be divided up into categories
• Different types of menu (breakfast, brunch, lunch,
afternoon and dinner)
• BALANCE ENTIRE MENU
Developing a Menu
Menu Content = refers to the selections of
food items in each menu category
• Physical layout of the facility, including
space for storage, preparation, and service
areas
• Skill level and number of employees
• Availability of food
• Customers’ needs
• Customers’ expectations of the menu
offerings and prices
• Profit margin and price range
Steps to Developing Menu Content
1. List all possible items
2. Eliminate items
3. Tailor items to fit customers,
cuisine and theme
4. Choose items within the price range
that can be prepared well
5. Make final selections for the printed
menu
Questions
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8.
The __________ is an important tool that helps servers
sell food to customers and helps managers plan their
purchasing and production systems.
Hardee’s, TGI Friday’, a hotel restaurant, and a local
pizzeria are called ____________ operations because
they sell food in order to make a profit.
Your school cafeteria is a __________ foodservice
operation because it supports the school and isn’t open to
the public.
On a(n)__________ menu, items are listed separately, a
separate prices.
The __________, or main course, is the featured
attraction of the meal.
_______________ is a combination of breakfast and
lunch.
Which type of menu, groups several food items together
for one price.
How often does a du jour menu change?
Designing and Analyzing the
Menu
6.2
Menu Design
• There are two main functions of successful
menu are communicating and selling
• An appealing menu contains a variety of
items developed according to market
factors and customer preferences.
• Menus need to be attractive and presented
so customers can easily and quickly read
and understand the items and reflect
restaurant atmosphere
Menu Design
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Cover Stock
Laminated
Clip-on (temp. attachment to a menu)
Shape of a menu ex. fish for a seafood
restaurant
• Format, size of lettering, fonts
• A MENU IS A MARKETING TOOL, IT
SHOULD REFELECT THE
ESTABLISHMENT’S ATMOSHPER AND
THEME
Analyzing Menus
Menu Analysis = helps managers make
decisions about keeping, cutting, or adding
menu items.
– Prices, the market, food costs, seasonal factors, and
where items are placed on a menu influence a menu’s
performance
Menu Analysis Worksheet = shows how each
item contributes to profitability, allowing
managers to evaluate menus
– Analyzing menu can be done manually, but most
operations are completed on a computer
12 Steps to Determine the Success of
Menu Items
1. List all items on the menu.
2. Determine the number of each item
sold in a specific time period
(called menu mix)
3. Determine each item’s menu mix
percentage by dividing its menu
mix by the total number of items
sold in that period
Menu Mix % = Menu mix (number of an item sold)
Total number of items sold
12 Steps Continued
4. Categorize each item’s menu mix percentage
as either high or low (according to standards
set by management.
5. List each item’s selling price.
6. Determine each item’s standard food cost.
7. Determine each item’s contribution margin by
subtracting its standard food cost from it’s
selling price
Contribution margin = selling price-standard food cost
12 Steps Continued
8. Determine the menu contribution margin
by adding each item’s contribution
margin and menu mix
Menu contribution margin = all contribution margins + all
menu mixes
9. Determine each item's contribution
margin proportion by dividing its
contribution margin by the menu
contribution margin
Contribution margin proportion = contribution margin
menu contribution margin
12 Steps Continued
10. Categorize each item’s contribution
margin as high or low according to its
relationship to the average contribution
margin achievement rate. This rate is
found by dividing the menu contribution
margin (step 8) by the total number of
items sold (step 2)
Avg. contribution margin rate = Menu contribution margin
Total number of items sold
12 Steps Continued
11. Classify each menu item in relation to
the others.
1. Dog – low menu mix percent, low contribution
margin
2. Puzzle – low menu mix percent, high contribution
margin
3. Plowhorse – high menu mix percent, low
contribution margin
4. Star – high menu mix percent, high contribution
margin
12. Make decisions for each item based on
all the previous information. Such
decisions might be to retain, reprice,
reposition, or replace items.
Questions for 6.2
A quick-service restaurant sold 21, 248 total
items last month, including 3,419
chocolate milkshakes. Each chocolate
milkshake coast $.45 and sold for $1.29
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What was the menu mix for chocolate
milkshakes?
What was the menu mix percentage for chocolate
milkshakes?
What is the contribution margin for chocolate
milkshakes?
If it turns out that the chocolate milkshakes have a
high menu mix percentage bit a low contrition
margin, what will they be classified as?