Chapter 4: The Strategic Value of Knowledge

1. Chapter 4: • The Strategic Value • of Knowledge

2. What knowledge will assist you in planning effective Menus? • SWOT • Understand product flow/logistic • Understand what customers think

3. The Knowledge Needed For Effective Menu Planning Internal Strengths Weaknesses SWOT Analysis Threats Opportunities External

4. SWOT Analysis Internal Strengths Positive attributes of your business: What you do well, including your staff, your access to ingredients, and knowledge of the market .

5. SWOT Analysis Internal Weaknesses Negative attributes of your business, what you need to improve, e.g. the size of your business, the consistency of the service delivery, cleanliness, staff turnover, low productivity.

6. SWOT Analysis Those things in the market that you can take advantage of , e.g. increase sales volume, reduce costs/expenses, or reposition yourself. Opportunities External

7. SWOT Analysis Things that are typically out of your control, e.g. the introduction of new competitors and/or downturn in the economy. Food scandals Threats External

8. The Knowledge Needed For Effective Menu Planning • Conduct focus group → your market • Group discussion using scripted prompts administered to a representative sample of local residents • http://www.uncfsp.org/projects/userfiles/File/FocusGroupBrief.pdf • You must understand product/flow & logistics of food and beverages • To that end you must understand equipment capacity, cooking times, holding times, and balancing of staff workloads.

9. Customer Data • Market vs. Individuals • Understanding behaviors of persons • Understand the markets they belong to. • There are generalized sources for obtaining data • Non-specific 4.1 • You can create your own databases by obtaining information from your existing customers. • loyalty clubs and/or social media

10. 4.1

11. 4.2

12. 4.3 Customer Database Report The Menu Life Cycle

13. Assessing The Impact Of Competition • Your competition : competitive set (also referred to as peer set ) • The group of local businesses that represent alternative choices to your business. • Your objective is to position yourself to obtain the largest % of their dining dollar as possible. • Once you have identified your competitive set, you must decide whether to provide similar goods and services, or to differentiate your business.

14. 4.5 Competitive Set Comparative Study Placeholder image The Menu Life Cycle

15. Ingredient Availability, Market Prices, Vendors & Distribution Channels • A menu based on fleeting availability will present challenges, stock outages, price fluctuations, and the potential for customer dissatisfaction. • Distribution channels… • How delicious is something that has been shipped from halfway across the globe? (e.g. fish) • Preserved to slow aging and degradation. • The cost of transporting foods from faraway must be factored into menu prices.

16. The Locavore Movement • Based on ingredients usually sourced within 100 miles of you. • Often grown and raised or processed without additives, growth hormones, and chemicals. • The locavore concept acknowledges seasonality. • You can buy Florida hothouse tomatoes year-round, however nothing will deliver the local flavor as an ingredient harvested in your own region during its typical growing season.

17. 4.6 Changes in Ingredient Availability Placeholder image

18. The Locavore Movement • Make sure your choices are logical. • If you serve only local wines, you limit your customers to selection of fine wine from around the world. • Make sure that your customers are looking for items like grass-fed beef. They may be unaccustomed to it. • The key is: Base your product choices on sound, customer-centered rationale.

19. The Trends • It’s important to stay on the pulse of what people • are eating and how their tastes are evolving as a result of global influences • Monitoring and understanding trends is an important part of the • research we do at Campbell’s Culinary & Baking Institute. It’s • our way of anticipating what our retail and foodservice customers • will want as tastes shift and demographics change, so that • we can deliver the next generation of iconic foods and • beverages that people love. • Source :http://www.campbellsoupcompany.com/

20. 1 Discovery Emerges with a limited but influential group /Cultural hot spots/up market restaurants • 2 Introduction Reaches a culinary minded audience/ food magazine/new york times/ specialty grocers & outlets • 3 Adoption Gains traction with larger audience /food net work channels/ celebrity chefs / full service chain restaurants TGIF • 4 Main stream Accepted in many house holds/ main stream media/todays show/ quick service restaurant • 5 Established Reaches mass audience/ grocery retail oullets / packaged food • 6 Expanded Reaches global audience / internationally available • Group discussion and sharing • At which stage and how would you introduce new trends to your Menu?

21. http://www.quickservicecpa.com/dollars-and-sense/entry/mcdonalds-focuses-on-global-trends-in-2013http://www.quickservicecpa.com/dollars-and-sense/entry/mcdonalds-focuses-on-global-trends-in-2013 • http://www.restfinance.com/Restaurant-Finance-Across-America/January-2014/Will-McDonalds-Moves-Reverse-Sales-Trends/ • http://nrn.com/food-trends/new-pizza-hut-units-feature-pizza-slice • http://www.forbes.com/sites/caroltice/2013/06/18/how-one-dead-brand-reanimated-their-business/2/ • Read please and provide comments

22. Distribution Channels • Broad line distributors • Carry a broad and deep selection of items • Resist carrying low demand items • Provide their customers with commodity and market data • Most provide access to their online catalogs and current price lists

23. 4.7 Performance Food Group Online Catalog Page Placeholder image The Menu Life Cycle

24. Spirits, Beer, and Wine distribution • Is governed by state alcoholic beverage control regulations. • In most states, individual vendors hold exclusive distribution rights for particular products (e.g. Budweiser beer or Robert Mondavi wine). • Spirits are most often purchased from state government stores (“ABC stores”) and warehouses. • i.e. a control state • Other states allow spirits to be sold by vendors

25. The Power of Information Technology • Information technology can be applied throughout the research and planning steps of the menu development process. • Excel, • Access • Specific Foodservice applications (e.g. Tracrite Software, Micros)

26. 4.10 Digital Recipe Card from an Integrated Foodservice Management Software Suite Placeholder image The Menu Life Cycle

27. The Power of Information Technology • The significant addition in Figure 4-10 is the criteria relating the recipe to the point-of-sale function. • This level of integration enables tracking of perpetual inventory , which allows for advanced inventory control and comparison of theoretical costs (planned) vs. actual costs. • If cost calculations are done for all food & beverage items sold, they are added to produce a total theoretical (planned) cost.

28. The Power of Information Technology • How much data integration is dictated by your information needs? • Most software is sold as a core POS (point-of-sale) system. • You can customize with extra software modules. • http://www.micros.com/Solutions/ProductsNZ/RESProductManagement/ • http://www.foodsoftware.com • http://www.eg-software.com/en/

29. The Power of Information Technology • Point-of-Sale • Credit Card Processing • Loyalty Club/Frequent Diner Features • Remote Communications • Labor and Staffing Integration • Banquets and Catering • Cafeteria/University Board Plan Integration • Hotel Room Service Connectivity • Delivery/Call-in • Inventory Control • Menu Analysis • Accounting and Bookkeeping