Transcript The Menu Chapter 5 The Menu • Single most controlling factor in a food service operation • Primary way to communicate with customers.

The Menu
Chapter 5
The Menu
• Single most controlling factor in a
food service operation
• Primary way to communicate with
customers
The Menu
• Key to a successful foodservice
operation
• A selling and public relations device
• Items should be clearly described
Menus Determine: all aspects
of production and service
• Food Purchased
– Food costs a major part of
expenses
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Equipment needed
Personnel
Work Schedules
Basis for pre-costing foods
Menu Writer Needs
• Know your
Customer
• Nutrition
• Preferences /
Habits
• Number Serving
• Available
Equipment
Menu Writer Needs cont.
• Staff
• Type of Service
• Food supply
availability
• Season and
Climate
• Aesthetics
Types of Menus:
Patient/Resident
Selective
Nonselective
• Choices made
hours/days prior
• Can control
amounts needed
• Will include
modified diets
• Predetermined &
no choice
• Will meet
nutritional
guidelines, culture,
cost
Types of Menus:
Patient/Resident
Fixed/restaurant
style
• Same menu
everyday
• Daily specials
offered
Room Service
• Patients call down
when ready to eat
Types of Menus: Restaurant
• Static
• Single Use
• Cycle
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À la Carte
Table d’Hôte
Prix Fixe
Du Jour
Types of Menus: NonCommercial
• Healthcare, school foodservice,
correctional facilities, colleges,
universities, military
• Same as before
• MRE: Meal, Ready to Eat
• UGR: Unitized Group Ration
Types of Service
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American or Plate
English
Family
French
Russian
The Classic Menu- p. 94
• Cold hors
d’oeuvre
• Soup
• Hot hors
d’oeuvre
• Fish
• Main course
• Hot entrée
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Cold entrée
Sorbet
Roast
Vegetable
Sweet
Dessert
The Modern Menu
First Course:
Appetizer
Soup
(Fish)
Salad
Main Dish:
Meat, poultry, or fish
Vegetable accompaniment
Dessert Dishes: Salad
Fruits and cheeses
Sweets
Menu Development: 10 Steps
1. Plan entrees, varying category and
preparation method
2. Choose accompanying starch
3. Select Vegetable
4. Add salads
5. Desserts
Menu Development: 10 Steps
6. Select soup and/or appetizer
7. Breads
8. Breakfast entrees
9. Breakfast cereals and breads
10.Fruits and juices
Menu Guidelines
• Aesthetics
• Nutritional adequacy
• Cost
– Labor, competition, customers,
atmosphere, location, food costs
• Regulations
– gov’t mandated food programs
– Truth in Menus
Truth in Menus
• What the customer sees on the menu is
what they get on the plate
• Nutritional Disclosure and Labeling
• Terms:
“Fresh”
“Imported”
“Homemade”
“Organic”
Menu Accuracy
• Point of
Origin/location
• Grade or
quality
• Cooking
method
• Size or portion
• Brand Name
• Nutritional
Information
• Presentation
• Pictures
• Description
Marketing Strategies
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Product
Place
Price
Promotion
Marketing Strategies: Product
Product:
• Labels
• Packaging
• Trademarks,
• New product
development
• Guarantees
• New users
Service:
• Convenience
• Individual attention
• satisfaction
Marketing Strategies: Place
• How to get the product into the
consumers’ hands
• Maximize speed, minimize cost
• Where to advertise?
– Based on customers
Marketing Strategies: Price
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Meet competition price
Price above competition (quality)
Under price (cost advantage)
Cost-based pricing:
– Total cost/estimated attendance or units sold
• Promotional Strategy
– Advertising, personal selling, sales
promotion and publicity to meet sales
objectives
Marketing Strategies:
Promotion
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Appropriate reading level
Brief
Positive, active verb use
Attractive and interesting visuals
Appropriate distribution channels to reach
target
• May include samples or service
• Use known and respected spokespersons
Pricing Strategies: Philosophy
• Good value for the price
• Low cost items, higher markup;
offset the opposite
• Items prices to high ↓ sales and ↑
operating costs
• ↑ sales volume with customer
satisfaction
Pricing Strategies: Philosophy
• Effective record keeping necessary
for proper pricing
• Prices affected by competitors,
supermarket food prices and
consumer demand
• Pricing important when competing
with fast food/convenient options
Pricing: Breakeven
• Breakeven analysis:
– Identify level of production to cover all
fixed and variable costs of production
– Profit = 0
• Breakeven Point:
– Make no profit, incur no loss
– Total revenue = total expenses
BEP
• BEP = Fixed cost__________
1-(Variable cost/Sales)
Fixed cost= $38,000
Variable Cost = $75,000
Sales = $180,000
BEP=$38,000___________ = $65,517.24
1-($75,000/$180,000)
Revenue-Generating Methods
• Demand-Oriented Method
– Perceived cost
– willing to pay
• Food Cost Percentage
– 40%
• Markup
– Includes overhead, labor, utilities, equipment
costs
=100/food cost percent
Markup Example:
Raw food cost= $0.86 (per person)
Hidden costs (10% of raw food costs)=
0.09
Markup (100/40=2.5)
=(0.86 + 0.09) x 2.5
=$2.375
Round to next reasonable menu price
= $2.50
Prime Cost Method
• Reflects labor costs directly
Raw food costs = $0.86
Hidden costs = $0.09
Labor (60 min @ $7.15÷ 25 portions) = +0.29
= $1.24
Markup Factor (x1.5)* x 1.5
Realistic selling price = $1.86
Rounded
= $2.00
Loss Leader
• Advertisement of an item at a sale
price that is lower than the actual
cost of the item
• To bring customers in
• Hope will buy more
• = Promotion pricing
Other Pricings
• Pricing Adjustments
– Discounts for employees
– Free or reduced structure (National School
Lunch Program)
• Options Pricing
– Increase in pricing as add options to basics
product
• Product Line Pricing
– Range of prices for a variety of products
offered
– i.e. self serve vs. table service