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Unit 10. Truth-in-Menu Laws & Menu Pricing. Culinary Arts 2. Bellwork :. CUL2-MenuPlanning-PowerPoint2.ppt. How do foodservice establishments determine how much to charge for menu items?. PROPERTY OF PIMA COUNTY JTED, 2010. Objectives. Student will be able to:
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Unit 10 Truth-in-Menu Laws &Menu Pricing Culinary Arts 2 CUL2-MenuPlanning-PowerPoint2.ppt
Bellwork: CUL2-MenuPlanning-PowerPoint2.ppt How do foodservice establishments determine how much to charge for menu items? PROPERTY OF PIMA COUNTY JTED, 2010
Objectives Student will be able to: 1. Differentiate between menu types 2. Construct a signature dish menu item following truth-in-menu principles. 3. Identify factors that influence menu prices. CUL2-MenuPlanning-PowerPoint2.ppt
Terminology Menu- a list of the dishes served at a meal; food and drink choices, a bill of fare Property of CTE Joint Venture CUL2-MenuPlanning1.ppt
Terminology • Á la carte menu- a menu on which each food item or beverage is priced and served separately healthcare.uiowa.edu eltonscafe.com Thehogblog.com Property of CTE Joint Venture CUL2-MenuPlanning1.ppt
Terminology California menu- a single menu listing breakfast, lunch, and dinner foods, customers can choose any item at any time of day hotelmule.com Property of CTE Joint Venture CUL2-MenuPlanning1.ppt
Du jour menu- lists food that is served only on that particular day Terminology Du jour menu- lists food that is served only on that particular day lagaiete.fr Flickr.com Grubhub.com Property of CTE Joint Venture CUL2-MenuPlanning1.ppt
Terminology Property of CTE Joint Venture CUL2-MenuPlanning1.ppt Table d’hôte menu- offers a complete meal from appetizer to a dessert for a set price
Terminology Fixed Menu- also called a static menu, offers the same items every day, allowing customers to continue to return for favorite dishes. Many neighborhood and ethnic restaurants use a fixed menu midlifedrive.wordpress.com Property of CTE Joint Venture CUL2-MenuPlanning1.ppt
Terminology • Truth-in-Menu Laws- The collective name given to various laws and regulations that have been implemented to ensure accuracy in the wording on menus. CUL2-MenuPlanning-PowerPoint2.ppt
Truth-in-Menu Laws: • These laws, which could perhaps better be described as “ accuracy in menus, ” are designed to protect consumers from fraudulent food and beverage claims • The various Truth in Menu laws currently in effect run to thousands of pages, and are overseen by dozens of agencies the key is honesty in menu claims, in regard to both the price that is charged and the food that is served.“ CUL2-MenuPlanning-PowerPoint2.ppt
Truth-in-Menu Laws CUL2-MenuPlanning-PowerPoint2.ppt
What Factors Influence Menu Prices? • Restaurant Style • Customer Base • Competition • Service Style • Restaurant hours • Profit Objective CUL2-MenuPlanning-PowerPoint2.ppt
Menu Pricing Methods Prime Cost Pricing Method Copy Cat Method Value Based Pricing Method Fair Pricing Method Factor Method CUL2-MenuPlanning-PowerPoint2.ppt
Prime Costs Pricing Method Step 1 Determine the labor cost per guest by dividing labor costs by the number of expected guests. Step 2 Determine the prime costs per guest by adding the labor cost per guest to the menu item’s food cost. Step 3 Determine the base selling price by dividing the prime costs per guest by the desired prime costs percentage. CUL2-MenuPlanning-PowerPoint2.ppt
Copycat Method This method is the simplest of methods to determine menu prices: • Find a restaurant in a nearby location that has a similar style of service, restaurant and menu items. • Copy their prices. 7starspress.com CUL2-MenuPlanning-PowerPoint2.ppt
Value Based Pricing Price your product based on the value it creates for the customer. This is usually the most profitable form of pricing, if you can achieve it CUL2-MenuPlanning-PowerPoint2.ppt
Fair Pricing Sometimes it simply doesn't matter what the value of the product is, even if you don't have any direct competition. There is simply a limit to what consumers perceive as "fair". CUL2-MenuPlanning-PowerPoint2.ppt
Factor Method • The factor method is the oldest and simplest method for pricing menu items. To determine the price of a menu item, multiply the raw food cost by an established pricing factor. All items are then marked up by the same amount. CUL2-MenuPlanning-PowerPoint2.ppt
Steps for Using the Factor Method: CUL2-MenuPlanning-PowerPoint2.ppt
Closure: A-B Partner Teach • Partner A turn to partner B. • Tell or teach your partner the two most important things you have learned so far about pricing menu items. • Switch roles and repeat the process. CUL2-MenuPlanning-PowerPoint2.ppt PROPERTY OF PIMA COUNTY JTED, 2010