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The Menu

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.

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The Menu

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  1. The Menu Chapter 5

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

  3. The Menu • Key to a successful foodservice operation • A selling and public relations device • Items should be clearly described

  4. Menus Determine: all aspects of production and service • Food Purchased • Food costs a major part of expenses • Equipment needed • Personnel • Work Schedules • Basis for pre-costing foods

  5. Know your Customer Nutrition Preferences / Habits Number Serving Available Equipment Menu Writer Needs

  6. Menu Writer Needs cont. • Staff • Type of Service • Food supply availability • Season and Climate • Aesthetics

  7. Types of Menus: Patient/Resident Selective • Choices made hours/days prior • Can control amounts needed • Will include modified diets Nonselective • Predetermined & no choice • Will meet nutritional guidelines, culture, cost

  8. Types of Menus: Patient/Resident Room Service • Patients call down when ready to eat Fixed/restaurant style • Same menu everyday • Daily specials offered

  9. Static Single Use Cycle À la Carte Table d’Hôte Prix Fixe Du Jour Types of Menus: Restaurant

  10. Types of Menus: Non-Commercial • Healthcare, school foodservice, correctional facilities, colleges, universities, military • Same as before • MRE: Meal, Ready to Eat • UGR: Unitized Group Ration

  11. Types of Service • American or Plate • English • Family • French • Russian

  12. Cold hors d’oeuvre Soup Hot hors d’oeuvre Fish Main course Hot entrée Cold entrée Sorbet Roast Vegetable Sweet Dessert The Classic Menu- p. 94

  13. The Modern Menu First Course: Appetizer Soup (Fish) Salad Main Dish: Meat, poultry, or fish Vegetable accompaniment Dessert Dishes: Salad Fruits and cheeses Sweets

  14. Menu Development: 10 Steps • Plan entrees, varying category and preparation method • Choose accompanying starch • Select Vegetable • Add salads • Desserts

  15. Menu Development: 10 Steps • Select soup and/or appetizer • Breads • Breakfast entrees • Breakfast cereals and breads • Fruits and juices

  16. Menu Guidelines • Aesthetics • Nutritional adequacy • Cost • Labor, competition, customers, atmosphere, location, food costs • Regulations • gov’t mandated food programs • Truth in Menus

  17. 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”

  18. Menu Accuracy • Point of Origin/location • Grade or quality • Cooking method • Size or portion • Brand Name • Nutritional Information • Presentation • Pictures • Description

  19. Marketing Strategies • Product • Place • Price • Promotion

  20. Marketing Strategies: Product Product: • Labels • Packaging • Trademarks, • New product development • Guarantees • New users Service: • Convenience • Individual attention • satisfaction

  21. Marketing Strategies: Place • How to get the product into the consumers’ hands • Maximize speed, minimize cost • Where to advertise? • Based on customers

  22. Marketing Strategies: Price • 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

  23. Marketing Strategies: Promotion • 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

  24. 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

  25. 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

  26. 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

  27. 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)

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

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