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MENU PLANNINGMENU PLANNING
From design to evaluation
Dedy Wijayanto 1
DEDY WIJAYANTO
RationaleRationale
Semuanya dimulai dengan menu. Menu
menentukan banyak tentang bagaimana operasi
Anda akan diatur dan dikelola, sejauh mana ia
memenuhi tujuannya, dan bagaimana bangunan
itu sendiri - pastinya interiornya - harus
dirancang dan dibangun.
Dedy Wijayanto 2
TujuanTujuan
Untuk menjelaskan pentingnya sebuah
menu
Untuk menjelaskan aturan dasar
perencanaan menu
Mengidentifikasi faktor yang harus
dipertimbangkan saat merencanakan menu
Mengidentifikasi kendala dalam perencanaan
menu
Untuk merencanakan dan menulis menu
Dedy Wijayanto 3
Harus memuaskan keinginanHarus memuaskan keinginan
pelangganpelanggan
Reflect your guests’ tastes
Reflect your guests’ food preferences
Ascertain your guests’ needs
Dedy Wijayanto 4
Must attain Marketing ObjectivesMust attain Marketing Objectives
Locations
Times
Prices
Quality
Specific food items
Dedy Wijayanto 5
Must help to achieve Quality ObjectivesMust help to achieve Quality Objectives
Quality standards:
flavor, texture, color, shape, flair,
consistency, palatability, visual appeal,
aromatic apparel, temperature
Nutritional concerns:
low-fat, high-fiber diets, vegetarian
Dedy Wijayanto 6
Must be Cost-EffectiveMust be Cost-Effective
Commercial
financial restraints profit
objectives
Institutional
minimizing costs operational
budget
Dedy Wijayanto 7
Must be AccurateMust be Accurate
 Truth-in-menu laws exist in some localities,
cannot mislabel a product
◦ “butter” must use butter not margarine
◦ “fresh” must be fresh, not fresh frozen
◦ “homemade” not purchased “ready-to-heat”
◦ “USDA Choice” actually “USDA Good”
Dedy Wijayanto 8
Menu Planning ConstraintsMenu Planning Constraints
Dedy Wijayanto 9
Facility Layout/DesignFacility Layout/Design
and Equipmentand Equipment
Space
Equipment available
Work flow
Efficiency
Dedy Wijayanto 10
Available LaborAvailable Labor
Number of Employees
Required Skills
Training Programs
Dedy Wijayanto 11
IngredientsIngredients
Standard recipe
Availability of the ingredients
required during the life span of the
menu
Seasonal ingredients
Cost
Miscellaneous cost (flight charges,
storage)
Dedy Wijayanto 12
Marketing ImplicationsMarketing Implications
Social needs
Physiological needs
Type of service
(fast food, leisure dinning)
Festival
Nutrition
Dedy Wijayanto 13
Quality Levels and CostsQuality Levels and Costs
Guests’ expectation
Employees’ skills and knowledge
Availability of equipment
Specific ingredients
Food costs and selling prices
Dedy Wijayanto 14
The Menu andThe Menu and
the Food Servicethe Food Service
OperationOperation
Dedy Wijayanto 15
The Menu Helps to Determine StaffThe Menu Helps to Determine Staff
NeedsNeeds
Variety and complexity increases, number of
personnel increases
◦ Production staff
◦ Service staff
◦ Back-of-house staff
Dedy Wijayanto 16
The Menu Dictates ProductionThe Menu Dictates Production
and Service Equipment Needsand Service Equipment Needs
Tableside service
carving utensils, trolleys, gueridon,
salad bowls, suzette pans, souffle
dishes, soup tureens, large wooden
salad bowl, rechaud, Voiture (heated
cart for serving roasts) and ......
Dedy Wijayanto 17
The Menu Dictates Dining SpaceThe Menu Dictates Dining Space
A take-out sandwich or pizza operation would
require no dining space and the amount of
square feet required per person would be
minimal.
On the other hand, if a restaurant offers a huge
salad buffet, dessert selection or an after-dinner
trolley, wide aisles would be needed to allow
guests ease of movement and moving of
equipment.
Dedy Wijayanto 18
Purchase Specifications May BePurchase Specifications May Be
Dictated By The MenuDictated By The Menu
Jika menu tersebut menawarkan barang-barang
seperti steak strip USDA Choice New York,
burger daging sapi tanpa lemak seperempat
pound, telur AA grade, jus jeruk Florida segar,
atau tomat matang, prosedur back-of-house
tidak hanya mencakup menerima, menyimpan ,
menerbitkan, dan memproduksi item menu tapi
juga membeli produk tertentu yang dijelaskan.
(Bila faktor-faktor seperti ukuran kelas dan
ukuran tidak didikte oleh menu, manajer dan
koki harus menentukan spesifikasi pembelian dan
faktor kualitas terkait.)
Dedy Wijayanto 19
How and When Items Must BeHow and When Items Must Be
PreparedPrepared
To stimulate guest interest, the menu planner
may offer a dish prepared in a variety of ways:
◦ Cooking methods
◦ Poached, broiled, batter-dipped, deep fried
The finished product must be prepared using
the method indicated on the menu
Small quantities cooking (a la carte)
Batch cooking
Dedy Wijayanto 20
The Menu is a Factor in the DevelopmentThe Menu is a Factor in the Development
of Cost Control Proceduresof Cost Control Procedures
As the menu requires more expensive food
items and more extensive labor or capital
(equipment) needs, the property’s overall
expenses and the procedures to control them
will reflect these increased cost.
Dedy Wijayanto 21
The Menu and the Service PlanThe Menu and the Service Plan
Type and size of dinnerware
Types of flatware
Garnishes (place be service or production staff)
Timing requirement for ordering
Additional dining service supplies to serve the item
Special serving produces
Special information (doneness of the steaks, over
easy or sunny side eggs, etc.)
Dedy Wijayanto 22
Menu DesignMenu Design
 First impression is always important, the entire menu
should complement the operation
- Theme
- Interior Decor
- Design (Merchandising)
- Creativity
- Material
- Color
- Space
Dedy Wijayanto 23
Menu DesignMenu Design
- Type style and/or lettering
- Names of food items
- Description
- Popular items are at the top of a list
- Clip-ons, inserts (daily specials)
- Operations address
- Beverage service notice
- Separate menus for each meal period
- Separate menu for host/hostess and guests
Dedy Wijayanto 24
Menu StylesMenu Styles
A table d'hôte (a complete meal for one
price)
A la Carte (items are listed and priced
separately)
Combination (combination of the table
d'hôte and a la carte pricing styles)
Fixed menus: a single menus for several
months
Cycle menus: designed to provide variety
for guests who eat at an operation
frequently - or even daily
Dedy Wijayanto 25
Types Of MenusTypes Of Menus
Breakfast
(offers fruits, juices, eggs, cereals, pancakes,
waffles, and breakfast meats)
Lunch
(features sandwiches, soups, salads, specials;
usually lighter than dinner menu items)
Dinner
(more elaborate, steaks, roasts, chicken, sea
food and pasta; wines, cocktails, etc..)
Dedy Wijayanto 26
Types Of Menus - SpecialtyTypes Of Menus - Specialty
Children’s
Senior citizens’
Alcoholic beverage
Dessert
Room service
Take-out
Banquet
California (breakfast, lunch and dinner menu
items on one menu)
Ethnic
Dedy Wijayanto 27
Basic Rules Of Menu PlanningBasic Rules Of Menu Planning
Know your guest
- Food preference
- Price
- Age
Know your
operation
- Theme or cuisine
- Equipment
- Personnel
- Quality standards
- Budget
Dedy Wijayanto 28
Selecting Menu ItemsSelecting Menu Items
Menu category:
 Appetizers
 Salads
 Entrees
 Starch items (potatoes, rice, pasta)
 Vegetables
 Desserts
 Beverages
Dedy Wijayanto 29
Common SourcesCommon Sources
For Menu Item RecipesFor Menu Item Recipes
Old menus
Books
Trade magazines
Cookbooks for the home
market
Dedy Wijayanto 30
Menu BalanceMenu Balance
Business balance
- balance between food cost, menu prices,
popularity of items, financial and marketing
considerations
Aesthetic balance
- colors, textures, flavors of food
Nutritional balance
Dedy Wijayanto 31
Elements Of Menu CopyElements Of Menu Copy
Headings
- Appetizers
- Soups
- Entrees
Sub-heading
- Under entree:
◦ Steak, seafood, today’s specials
Dedy Wijayanto 32
Elements Of Menu CopyElements Of Menu Copy
Descriptive copy (describe the menu
items)
- should be believable and made in
short, easy-to-read sentences
- no description is needed for self-
explanatory item. i.e. Low Fat Milk
Dedy Wijayanto 33
Truth-in-menuTruth-in-menu
Grading (foods are graded by size, quality, in
line with official standards)
“Freshness” (cannot be canned, frozen or fresh-
frozen)
Geographical origin (cannot make false claims
about the origin of a product)
Preparation (if the menu says baked, it cannot
be fried instead)
Dietary or nutrition claims (supportable by
scientific data)
Dedy Wijayanto 34
Supplemental Merchandising CopySupplemental Merchandising Copy
Includes information such as:
Address
Telephone number
Days and hours of operation
Meals served
Reservations and payment policies
History of the restaurant
A statement about management’s commitment
to guest service
Dedy Wijayanto 35
Menu LayoutMenu Layout
Sequence:
Appetizers, soups, entrees, desserts
◦ Depends on the operation (side orders, salads,
sandwiches, beverages)
◦ Depends on popularity and profitability
Placement:
artworks; space; boxes; clip-on; etc.
Dedy Wijayanto 36
Menu LayoutMenu Layout
Format:
Menu’s size
General makeup
Typeface:
Printed letters
Font size
Type face
Dedy Wijayanto 37
Menu LayoutMenu Layout
Artwork:
Drawings, photographs, decorative patterns,
borders
Paper:
Texture
Cover:
Color
Texture
Dedy Wijayanto 38
Common Menu-design MistakesCommon Menu-design Mistakes
Menu is too small
Type is too small
No descriptive copy
Every item treated the same
Some of the operations’ food and beverages are
not listed
Clip-on problems
Basic information about the property and its
policies are not included
Blank pages
Dedy Wijayanto 39
Evaluating MenusEvaluating Menus
Must set standards
Determine how menu is helping to meet
standards
Dedy Wijayanto 40
Menu Evaluation:Menu Evaluation:
Questions Most Often AskedQuestions Most Often Asked
Is the menu attractive?
Do the colors and other design elements match
the operation’s theme and decor?
Are menu items laid out in an attractive and
logical way?
Is there too much descriptive copy? Not
enough? Is the copy easy to understand?
Is attention called to the items managers most
want to sell, through placement, color,
description, type size, etc.?
Dedy Wijayanto 41
Menu Evaluation:Menu Evaluation:
Questions Most Often AskedQuestions Most Often Asked
Have guests complained about the menu?
Have guests said good things about the menu?
How does the menu compare with the menus
of competitors?
Has the average guest check remained steady
or increased?
Is there enough variety in menu items?
Are menu items priced correctly?
Are you selling the right mix of high-profit and
low-profit items?
Dedy Wijayanto 42
Menu Evaluation:Menu Evaluation:
Questions Most Often AskedQuestions Most Often Asked
Is the typeface easy to read and
appropriate to the restaurant’s
theme and decor?
Is the paper attractive and stain-
resistant?
Have the menus been easy to
maintain so that guests always
receive a clean, attractive menu?
Dedy Wijayanto 43
Menu PricingMenu Pricing
SUBJECTIVE PRICING:
The reasonable price method: from the guest’s
perspective - what charge is fair and equitable
The highest price method: sets the highest
price that the manager thinks guests are willing
to pay
The loss lender price method: an unusually low
price is set for an item to attract guests
The intuitive price method: takes a wild guest,
trail-and-error
Dedy Wijayanto 44
Menu PricingMenu Pricing
DESIRED FOOD COST PERCENTAGE
PRICING METHOD:
manager determines a reasonable food
cost percent
then divides a menu item’s standard food
cost by its reasonable food cost percent
Selling price = $1.50 (item’s standard food cost) = $4.55
0.33 (desired food cost percent)
Dedy Wijayanto 45
Menu PricingMenu Pricing
PROFIT PRICING:
factors profit requirements and non-food
expenses into menu item selling prices
Allowable = $300,000 - $189,000 - $15,000 =
$96.000
food costs (forecasted (non-food (profit
food sales) expenses) requirements)
Budgeted food cost % = $96,000 (allowable food costs) = 0.32
or 32%
$300,000 (forecasted food sales)Dedy Wijayanto 46
Menu PricingMenu Pricing
COMPETITION AND PRICING:
Know competitor’s menus, selling prices, and
guest preferences
Lower your prices
Raise your prices
Elasticity of demand:
Elastic: price change creates a larger % in the
quantity demanded (prices-sensitive)
Inelastic: the % change in quantity demanded is
less than the % change in price
Dedy Wijayanto 47
Dedy Wijayanto 48
The Menu:The Foundation ForThe Menu:The Foundation For
ControlControl
GUEST SATISFACTION
SERVING
HOLDING
COOKING
PREPARING
ISSUING
STORING
RECEIVING
PURCHASING
MENU PLANNING
PRODUCTION ACTIVITIES
BASIC OPERATING ACTIVITIES:
CONTROL POINTS
The Menu InfluencesThe Menu Influences
Product Control Procedures
every item on the menu represents a
product to be controlled
Cost Control Procedures
careful cost control procedures must be
followed, particularly when expensive
products and labor-intensive service styles
are used
Production Requirement
product quality, staff productivity and skills,
timing and scheduling, and other back-of-
Dedy Wijayanto 49
The Menu InfluencesThe Menu Influences
Equipment Needs
equipment must be available to prepare
products required by the menu
Sanitation Management
management must consider menu items
in light of possible sanitation hazards
Layout and Space Requirements
the physical space within which food
production and service take place - must
be adequate for purchasing, receiving,
storing, issuing, producing, and servingDedy Wijayanto 50
The Menu InfluencesThe Menu Influences
Staffing Needs
as menu becomes more complex, greater
demands may be placed upon the staff
Service Requirements
the menu affects the skill levels required
for service personnel, along with
equipment, inventory, and facilities
needed in the front of the house
Sales Income Control Procedures
elaborate menus require more stringent
controls than simple menusDedy Wijayanto 51
Menu PlanningMenu Planning is also.. A Tool for:is also.. A Tool for:
Sales
lists the items an operation is offering for
sale
Advertising
communicates a property’s food and
beverage marketing plans
Merchandising
target market expectations - products,
service, ambience (theme and
atmosphere), perceived value
Marketing Tool Dedy Wijayanto 52
Priority Concerns OfPriority Concerns Of
The Menu PlannerThe Menu Planner
Dedy Wijayanto 53
Nutritional Content
Priority Concerns of menu Planner
Wants and needs
Concept of Value
Item Price
Object of Property Visit
Socio-Economic Factors
Demographic Concerns
Ethnic Factors
Religious Factors
Guest
Quality of Item
Cost
Availability
Peak Volume Production
and Operating Concerns
Sanitation Concerns
Layout Concerns
Equipment Concerns
Flavour
Consistency
Texture/Form/Shape
Visual Appeal
Aromatic Appeal
Temperature
Menu Planning StrategiesMenu Planning Strategies
Rationalization
its objective is simplification for the sake of
operational efficiency
i.e., cross-utilization menu items use the same raw
ingredients
- Menu when carefully plan can be a streamlining of
the purchasing, receiving, storing, issuing,
production, and serving control points.
- High-quality convenience foods make it easier to
offer new items without having to buy additional
raw ingredients Dedy Wijayanto 54
Factors That Influence MenuFactors That Influence Menu
Planning StrategiesPlanning Strategies
Needs and wants of target markets
Several items from same ingredients
Storage requirements
Personnel skill levels
Product availability / seasonality
Quality and price stability
Sanitation procedures
Dedy Wijayanto 55
External FactorsExternal Factors
That Influence Menu ChangesThat Influence Menu ChangesConsumer Demands
decide which potential markets wants to
attract
Economic Conditions
cost of ingredients, potential profitability of
new menu items
Competition
many not want to serve next door’s best
Supply Levels
seasonal items, price to the quality and
quantity Dedy Wijayanto 56
Internal FactorsInternal Factors
That Influence Menu ChangesThat Influence Menu Changes
 Facility Meal Patterns
existing meal periods - breakfast, lunch and
dinner
 Concept and Theme
the image may rule out certain foods that do
not blend with its theme and decor
 Operational System
costs for new equipment to the successful
production and service of new menu items
Dedy Wijayanto 57
Pricing ApproachesPricing Approaches
 Subjective Price Methods
intuition and knowing your guests (failed to
relate profit and costs)
 The Reasonable Price Methods
presumes value to the guest (what charge is
fair and equitable)
 The Highest Price Method
sets the highest price the guests are willing to
pay
Dedy Wijayanto 58
Pricing ApproachesPricing Approaches
The Loss Leader Method
an unusually low price is set for an item (or
items) to bring guests in
The Intuitive Price Method
wild guess about the selling price
(pricing methods based on assumptions,
hunches and guesses)
Dedy Wijayanto 59
Pricing ApproachesPricing Approaches
 Simple Mark-up Pricing Methods
designed to cover all costs and to yield the
desired profit.
Three Steps:
1. Determine the ingredients’ costs
2. Determine the multiplier
3. Establish a base selling price
Dedy Wijayanto 60
MultiplierMultiplier
If food cost is to be 40%
Multiplier = 1 / desired food cost%
= 1 / .40
= 2.5
Dedy Wijayanto 61
Base Selling PriceBase Selling Price
If ingredient cost is $3.32
Base Selling Price = Ingredient Cost x
Multiplier
$8.30 = $3.32 x 2.5
A base selling price in not necessarily the
final selling price
Dedy Wijayanto 62
Prime-IngredientPrime-Ingredient
Mark-Up MethodMark-Up Method
Base selling price = Prime Ingredient
Cost x Multiplier
$8.30 = $1.59 x 5.22
or food cost is about 19%
Dedy Wijayanto 63
Mark-Up withMark-Up with
Accompaniment CostsAccompaniment Costs
Entree / Primary Costs $3.15
Plate Cost +$1.25
Food Cost $4.40
Mark-Up Multiplier x 3.3 (30%
food cost)
Base Selling Price $14.52
Dedy Wijayanto 64
Determining the Price MultiplierDetermining the Price Multiplier
Based upon:
 experience or “rule of thumb”
 contribution margin
 impact of sales mix
 does not reflect higher or lower labor cost
 assume food cost associated with producing
menu item are know
Dedy Wijayanto 65
Contribution MarginContribution Margin
Pricing MethodPricing Method
Contribution Margin refers to the amount
left after a menu item’s food cost is
subtracted from its selling price.
Two steps in setting base selling price:
1. Determine the average contribution
margin required per guest
Non-Food + Required Profit = Ave. Contribution Margin Required/guest
No. of Expected guests
$295,000 + $24,000 = $3.75
85,000
Dedy Wijayanto 66
Contribution MarginContribution Margin
Pricing MethodPricing Method
2. Determine the base selling price for a menu item
Base selling price = average contribution margin + Standard food
cost
$7.35 = $3.75 + $3.60
Dedy Wijayanto 67
Ratio Pricing MethodRatio Pricing Method
The ratio pricing method determines the
relationship between food costs and
all non-food costs plus profit
requirements and uses this ratio to
develop base selling price for menu
items.
Three steps
1. Determine the ration of food costs to all
other cost plus profit requirements
All non-food costs + Required profit = Ratio
Food costs
Dedy Wijayanto 68
Ratio Pricing MethodRatio Pricing Method
2. Calculate the amount of non-food cost and profit
required for a menu item
Non-food cost and profit required = Standard food cost x ratio
$5.03 = $3.75 x 1.34
3. Determine the base selling price for the menu item
Base Selling Price = Non-food cost and profit required + Standard food
cost
$8.78 = $5.03 + $3.75
Dedy Wijayanto 69
Simple Prime Costs MethodSimple Prime Costs Method
The term prime cost refers to the most significant costs
in a food service operation: food, beverage and labor.
A simple prime costs pricing method involves assessing
the labor costs for the food service operation and
factoring these costs into the pricing equation.
Three steps:
1. Determine the labor costs per guest
Labour Cost per guest = Labour costs / No. of expected
guests
$2.80 = $210,000 / 75,000
Dedy Wijayanto 70
Simple Prime Costs MethodSimple Prime Costs Method
2. Determine the prime costs per
guest
Prime Cost per guest = Labour cost per guest + menu item’s
food cost
$6.55 = $2.80 +
$3.75
3. Determine base selling price
Base Selling Price = Prime costs Per guestDedy Wijayanto 71
Specific Prime Cost MethodSpecific Prime Cost Method
Specific Prime Cost Method - develops mark-
ups for menu items so that the base selling
prices for the items cover their fair share
of labor costs.
Divide the menu items into 2 categories:
(A) extensive preparation
(B) non extensive preparation
clean up, and other non-preparation
activities
Dedy Wijayanto 72
Specific Prime Cost MethodSpecific Prime Cost Method
Allocates appropriate % of total food
costs and labor costs to each category
(A) 60% of the total food cost
(B) 40% of the total food cost
(A) & (B) 55% of all labor costs
45% of all labor costs is incurred for
service,
Dedy Wijayanto 73
Specific Prime Cost Method -Specific Prime Cost Method -
CalculationsCalculations
 Operating Category A Category
B Budget Item Budget % (extensive preparation) (Non-extensive
Preparation)
 Items Items
Dedy Wijayanto 74
(1) (2) (3) (4)
Food Cost35% 60% of 35% = 21% 40% of 35% = 14%
Labour Cost 30% 55% of 30% = 17% 40% of 13% = 5%
All Other Cost 20% 60% of 13% = 8% 40% of 20% = 8%
Profit 15% 60% of 15% = 9% 40% of 15% = 6%
Total 100% 67% 33%
Mark-Up 100% =2.9% 67% = 3.2 33% = 2.4
Multiplier 35% 21% 14%
Important Pricing ConsiderationsImportant Pricing Considerations
The Concept of Value (price relative to
quality)
The Basic Law of Supply and Demand
Volume Concerns Must be Considered
Price Charged by the Competition for a
similar Product
Dedy Wijayanto 75
Evaluating The Menu:Evaluating The Menu:
Menu EngineeringMenu Engineering
Basic Menu Engineering Process:
Stars - items that are popular profitable
Plowhorses - items that are not
profitable but popular
Puzzles - items that are profitable but
no popular
Dogs - items that are neither profitableDedy Wijayanto 76
Defining ProfitabilityDefining Profitability
 Contribution Margin
a “high” contribution margin for an individual
menu item would be one that is equal to or
greater than the average contribution margin
Average Contribution Margin = Total
Contribution Margin
Total
Number of Item Sold
Dedy Wijayanto 77
Defining PopularityDefining Popularity
Popular Index bases upon the notion of
“expected popularity”
For example:
4 items on a menu and each is assumed to be
equally popular, the sales of each would be
expected to be 25%
100% ÷ 4 = 25%
Menu engineering assumes that an item is
popular if its sales equal 70% of what is
expected..
For example:
a food item is considered popular if its sales is:Dedy Wijayanto 78
Menu Engineering WorksheetMenu Engineering Worksheet
Dedy Wijayanto 79
Menu Engineering Worksheet
Date: 6/10/00 _________________
Restaurant: ____________________________ Meal Period: Dinner
(A)
Menu
Item
Name
(B)
Number
Sold
(MM)
(C)
Menu
Mix
%
(D)
Item
Food
Cost
(E)
Item
Selling
Price
(F)
Item
CM
(E - D)
(G)
Menu
Costs
(D x B)
(H)
Menu
Revenues
(E x B)
(L)
Menu
CM
(H - G)
(P)
CM
Category
(R)
MM%
Category
(S)
Menu
Item
Classific-
ation
Chicken
Dinner 420 42% $2.21 $4.95 $2.74 $928.20 $2079.00 $1150.80 Low High
Plow-
horse
NY Strip
Steak 360 36% 4.50 8.50 4.00 1,620.00 3,060.00 1,440.00 High High Star
Lobster
Tail 150 15% 4.95 9.50 4.55 742.50 1,425.00 682.50 High Low Puzzle
Tenderloin
Tips 70 7% 4.00 6.45 2.45 280.00 451.50 171.50 Low Low Dog
Column
Totals
N
1,000
l
$3570.70
J
$7015.50
M
$3444.80
K = l / J O = M / N Q = (100%/items) (70%)
Additional Computations: 50.9% $3.44 17.5%
(Box K = Food Cost %; Box O = Average Contribution Margin)
Improving The MenuImproving The Menu
Managing PlowhorsesManaging Plowhorses
Items low in contribution margin, but high in popularity
Increase prices carefully
Test for demand
Relocate the item to a lower profile on
the menu
Shift demand to more desirable items
Combine with lower cost products
Assess the direct labor factor
Consider portion reduction
Dedy Wijayanto 80
Improving The MenuImproving The Menu
Managing PuzzlesManaging Puzzles
Items high in contribution margin but low in
popular
 Shift demand to these items
 Consider a price decrease
 Add value to the item
Dedy Wijayanto 81
Improving The MenuImproving The Menu
Managing StarsManaging Stars
Items high in contribution margin and
high in popularity
 Maintain rigid specifications
 Place in a highly visible location on the menu
 Test for selling price inelasticity
 Use suggestive selling techniques
Dedy Wijayanto 82
Improving The MenuImproving The Menu
Managing DogsManaging Dogs
Items that are low in contribution margin and
low in popularity:
Candidates for removal from the menu
Dedy Wijayanto 83

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Week 3 planning a menu

  • 1. MENU PLANNINGMENU PLANNING From design to evaluation Dedy Wijayanto 1 DEDY WIJAYANTO
  • 2. RationaleRationale Semuanya dimulai dengan menu. Menu menentukan banyak tentang bagaimana operasi Anda akan diatur dan dikelola, sejauh mana ia memenuhi tujuannya, dan bagaimana bangunan itu sendiri - pastinya interiornya - harus dirancang dan dibangun. Dedy Wijayanto 2
  • 3. TujuanTujuan Untuk menjelaskan pentingnya sebuah menu Untuk menjelaskan aturan dasar perencanaan menu Mengidentifikasi faktor yang harus dipertimbangkan saat merencanakan menu Mengidentifikasi kendala dalam perencanaan menu Untuk merencanakan dan menulis menu Dedy Wijayanto 3
  • 4. Harus memuaskan keinginanHarus memuaskan keinginan pelangganpelanggan Reflect your guests’ tastes Reflect your guests’ food preferences Ascertain your guests’ needs Dedy Wijayanto 4
  • 5. Must attain Marketing ObjectivesMust attain Marketing Objectives Locations Times Prices Quality Specific food items Dedy Wijayanto 5
  • 6. Must help to achieve Quality ObjectivesMust help to achieve Quality Objectives Quality standards: flavor, texture, color, shape, flair, consistency, palatability, visual appeal, aromatic apparel, temperature Nutritional concerns: low-fat, high-fiber diets, vegetarian Dedy Wijayanto 6
  • 7. Must be Cost-EffectiveMust be Cost-Effective Commercial financial restraints profit objectives Institutional minimizing costs operational budget Dedy Wijayanto 7
  • 8. Must be AccurateMust be Accurate  Truth-in-menu laws exist in some localities, cannot mislabel a product ◦ “butter” must use butter not margarine ◦ “fresh” must be fresh, not fresh frozen ◦ “homemade” not purchased “ready-to-heat” ◦ “USDA Choice” actually “USDA Good” Dedy Wijayanto 8
  • 9. Menu Planning ConstraintsMenu Planning Constraints Dedy Wijayanto 9
  • 10. Facility Layout/DesignFacility Layout/Design and Equipmentand Equipment Space Equipment available Work flow Efficiency Dedy Wijayanto 10
  • 11. Available LaborAvailable Labor Number of Employees Required Skills Training Programs Dedy Wijayanto 11
  • 12. IngredientsIngredients Standard recipe Availability of the ingredients required during the life span of the menu Seasonal ingredients Cost Miscellaneous cost (flight charges, storage) Dedy Wijayanto 12
  • 13. Marketing ImplicationsMarketing Implications Social needs Physiological needs Type of service (fast food, leisure dinning) Festival Nutrition Dedy Wijayanto 13
  • 14. Quality Levels and CostsQuality Levels and Costs Guests’ expectation Employees’ skills and knowledge Availability of equipment Specific ingredients Food costs and selling prices Dedy Wijayanto 14
  • 15. The Menu andThe Menu and the Food Servicethe Food Service OperationOperation Dedy Wijayanto 15
  • 16. The Menu Helps to Determine StaffThe Menu Helps to Determine Staff NeedsNeeds Variety and complexity increases, number of personnel increases ◦ Production staff ◦ Service staff ◦ Back-of-house staff Dedy Wijayanto 16
  • 17. The Menu Dictates ProductionThe Menu Dictates Production and Service Equipment Needsand Service Equipment Needs Tableside service carving utensils, trolleys, gueridon, salad bowls, suzette pans, souffle dishes, soup tureens, large wooden salad bowl, rechaud, Voiture (heated cart for serving roasts) and ...... Dedy Wijayanto 17
  • 18. The Menu Dictates Dining SpaceThe Menu Dictates Dining Space A take-out sandwich or pizza operation would require no dining space and the amount of square feet required per person would be minimal. On the other hand, if a restaurant offers a huge salad buffet, dessert selection or an after-dinner trolley, wide aisles would be needed to allow guests ease of movement and moving of equipment. Dedy Wijayanto 18
  • 19. Purchase Specifications May BePurchase Specifications May Be Dictated By The MenuDictated By The Menu Jika menu tersebut menawarkan barang-barang seperti steak strip USDA Choice New York, burger daging sapi tanpa lemak seperempat pound, telur AA grade, jus jeruk Florida segar, atau tomat matang, prosedur back-of-house tidak hanya mencakup menerima, menyimpan , menerbitkan, dan memproduksi item menu tapi juga membeli produk tertentu yang dijelaskan. (Bila faktor-faktor seperti ukuran kelas dan ukuran tidak didikte oleh menu, manajer dan koki harus menentukan spesifikasi pembelian dan faktor kualitas terkait.) Dedy Wijayanto 19
  • 20. How and When Items Must BeHow and When Items Must Be PreparedPrepared To stimulate guest interest, the menu planner may offer a dish prepared in a variety of ways: ◦ Cooking methods ◦ Poached, broiled, batter-dipped, deep fried The finished product must be prepared using the method indicated on the menu Small quantities cooking (a la carte) Batch cooking Dedy Wijayanto 20
  • 21. The Menu is a Factor in the DevelopmentThe Menu is a Factor in the Development of Cost Control Proceduresof Cost Control Procedures As the menu requires more expensive food items and more extensive labor or capital (equipment) needs, the property’s overall expenses and the procedures to control them will reflect these increased cost. Dedy Wijayanto 21
  • 22. The Menu and the Service PlanThe Menu and the Service Plan Type and size of dinnerware Types of flatware Garnishes (place be service or production staff) Timing requirement for ordering Additional dining service supplies to serve the item Special serving produces Special information (doneness of the steaks, over easy or sunny side eggs, etc.) Dedy Wijayanto 22
  • 23. Menu DesignMenu Design  First impression is always important, the entire menu should complement the operation - Theme - Interior Decor - Design (Merchandising) - Creativity - Material - Color - Space Dedy Wijayanto 23
  • 24. Menu DesignMenu Design - Type style and/or lettering - Names of food items - Description - Popular items are at the top of a list - Clip-ons, inserts (daily specials) - Operations address - Beverage service notice - Separate menus for each meal period - Separate menu for host/hostess and guests Dedy Wijayanto 24
  • 25. Menu StylesMenu Styles A table d'hôte (a complete meal for one price) A la Carte (items are listed and priced separately) Combination (combination of the table d'hôte and a la carte pricing styles) Fixed menus: a single menus for several months Cycle menus: designed to provide variety for guests who eat at an operation frequently - or even daily Dedy Wijayanto 25
  • 26. Types Of MenusTypes Of Menus Breakfast (offers fruits, juices, eggs, cereals, pancakes, waffles, and breakfast meats) Lunch (features sandwiches, soups, salads, specials; usually lighter than dinner menu items) Dinner (more elaborate, steaks, roasts, chicken, sea food and pasta; wines, cocktails, etc..) Dedy Wijayanto 26
  • 27. Types Of Menus - SpecialtyTypes Of Menus - Specialty Children’s Senior citizens’ Alcoholic beverage Dessert Room service Take-out Banquet California (breakfast, lunch and dinner menu items on one menu) Ethnic Dedy Wijayanto 27
  • 28. Basic Rules Of Menu PlanningBasic Rules Of Menu Planning Know your guest - Food preference - Price - Age Know your operation - Theme or cuisine - Equipment - Personnel - Quality standards - Budget Dedy Wijayanto 28
  • 29. Selecting Menu ItemsSelecting Menu Items Menu category:  Appetizers  Salads  Entrees  Starch items (potatoes, rice, pasta)  Vegetables  Desserts  Beverages Dedy Wijayanto 29
  • 30. Common SourcesCommon Sources For Menu Item RecipesFor Menu Item Recipes Old menus Books Trade magazines Cookbooks for the home market Dedy Wijayanto 30
  • 31. Menu BalanceMenu Balance Business balance - balance between food cost, menu prices, popularity of items, financial and marketing considerations Aesthetic balance - colors, textures, flavors of food Nutritional balance Dedy Wijayanto 31
  • 32. Elements Of Menu CopyElements Of Menu Copy Headings - Appetizers - Soups - Entrees Sub-heading - Under entree: ◦ Steak, seafood, today’s specials Dedy Wijayanto 32
  • 33. Elements Of Menu CopyElements Of Menu Copy Descriptive copy (describe the menu items) - should be believable and made in short, easy-to-read sentences - no description is needed for self- explanatory item. i.e. Low Fat Milk Dedy Wijayanto 33
  • 34. Truth-in-menuTruth-in-menu Grading (foods are graded by size, quality, in line with official standards) “Freshness” (cannot be canned, frozen or fresh- frozen) Geographical origin (cannot make false claims about the origin of a product) Preparation (if the menu says baked, it cannot be fried instead) Dietary or nutrition claims (supportable by scientific data) Dedy Wijayanto 34
  • 35. Supplemental Merchandising CopySupplemental Merchandising Copy Includes information such as: Address Telephone number Days and hours of operation Meals served Reservations and payment policies History of the restaurant A statement about management’s commitment to guest service Dedy Wijayanto 35
  • 36. Menu LayoutMenu Layout Sequence: Appetizers, soups, entrees, desserts ◦ Depends on the operation (side orders, salads, sandwiches, beverages) ◦ Depends on popularity and profitability Placement: artworks; space; boxes; clip-on; etc. Dedy Wijayanto 36
  • 37. Menu LayoutMenu Layout Format: Menu’s size General makeup Typeface: Printed letters Font size Type face Dedy Wijayanto 37
  • 38. Menu LayoutMenu Layout Artwork: Drawings, photographs, decorative patterns, borders Paper: Texture Cover: Color Texture Dedy Wijayanto 38
  • 39. Common Menu-design MistakesCommon Menu-design Mistakes Menu is too small Type is too small No descriptive copy Every item treated the same Some of the operations’ food and beverages are not listed Clip-on problems Basic information about the property and its policies are not included Blank pages Dedy Wijayanto 39
  • 40. Evaluating MenusEvaluating Menus Must set standards Determine how menu is helping to meet standards Dedy Wijayanto 40
  • 41. Menu Evaluation:Menu Evaluation: Questions Most Often AskedQuestions Most Often Asked Is the menu attractive? Do the colors and other design elements match the operation’s theme and decor? Are menu items laid out in an attractive and logical way? Is there too much descriptive copy? Not enough? Is the copy easy to understand? Is attention called to the items managers most want to sell, through placement, color, description, type size, etc.? Dedy Wijayanto 41
  • 42. Menu Evaluation:Menu Evaluation: Questions Most Often AskedQuestions Most Often Asked Have guests complained about the menu? Have guests said good things about the menu? How does the menu compare with the menus of competitors? Has the average guest check remained steady or increased? Is there enough variety in menu items? Are menu items priced correctly? Are you selling the right mix of high-profit and low-profit items? Dedy Wijayanto 42
  • 43. Menu Evaluation:Menu Evaluation: Questions Most Often AskedQuestions Most Often Asked Is the typeface easy to read and appropriate to the restaurant’s theme and decor? Is the paper attractive and stain- resistant? Have the menus been easy to maintain so that guests always receive a clean, attractive menu? Dedy Wijayanto 43
  • 44. Menu PricingMenu Pricing SUBJECTIVE PRICING: The reasonable price method: from the guest’s perspective - what charge is fair and equitable The highest price method: sets the highest price that the manager thinks guests are willing to pay The loss lender price method: an unusually low price is set for an item to attract guests The intuitive price method: takes a wild guest, trail-and-error Dedy Wijayanto 44
  • 45. Menu PricingMenu Pricing DESIRED FOOD COST PERCENTAGE PRICING METHOD: manager determines a reasonable food cost percent then divides a menu item’s standard food cost by its reasonable food cost percent Selling price = $1.50 (item’s standard food cost) = $4.55 0.33 (desired food cost percent) Dedy Wijayanto 45
  • 46. Menu PricingMenu Pricing PROFIT PRICING: factors profit requirements and non-food expenses into menu item selling prices Allowable = $300,000 - $189,000 - $15,000 = $96.000 food costs (forecasted (non-food (profit food sales) expenses) requirements) Budgeted food cost % = $96,000 (allowable food costs) = 0.32 or 32% $300,000 (forecasted food sales)Dedy Wijayanto 46
  • 47. Menu PricingMenu Pricing COMPETITION AND PRICING: Know competitor’s menus, selling prices, and guest preferences Lower your prices Raise your prices Elasticity of demand: Elastic: price change creates a larger % in the quantity demanded (prices-sensitive) Inelastic: the % change in quantity demanded is less than the % change in price Dedy Wijayanto 47
  • 48. Dedy Wijayanto 48 The Menu:The Foundation ForThe Menu:The Foundation For ControlControl GUEST SATISFACTION SERVING HOLDING COOKING PREPARING ISSUING STORING RECEIVING PURCHASING MENU PLANNING PRODUCTION ACTIVITIES BASIC OPERATING ACTIVITIES: CONTROL POINTS
  • 49. The Menu InfluencesThe Menu Influences Product Control Procedures every item on the menu represents a product to be controlled Cost Control Procedures careful cost control procedures must be followed, particularly when expensive products and labor-intensive service styles are used Production Requirement product quality, staff productivity and skills, timing and scheduling, and other back-of- Dedy Wijayanto 49
  • 50. The Menu InfluencesThe Menu Influences Equipment Needs equipment must be available to prepare products required by the menu Sanitation Management management must consider menu items in light of possible sanitation hazards Layout and Space Requirements the physical space within which food production and service take place - must be adequate for purchasing, receiving, storing, issuing, producing, and servingDedy Wijayanto 50
  • 51. The Menu InfluencesThe Menu Influences Staffing Needs as menu becomes more complex, greater demands may be placed upon the staff Service Requirements the menu affects the skill levels required for service personnel, along with equipment, inventory, and facilities needed in the front of the house Sales Income Control Procedures elaborate menus require more stringent controls than simple menusDedy Wijayanto 51
  • 52. Menu PlanningMenu Planning is also.. A Tool for:is also.. A Tool for: Sales lists the items an operation is offering for sale Advertising communicates a property’s food and beverage marketing plans Merchandising target market expectations - products, service, ambience (theme and atmosphere), perceived value Marketing Tool Dedy Wijayanto 52
  • 53. Priority Concerns OfPriority Concerns Of The Menu PlannerThe Menu Planner Dedy Wijayanto 53 Nutritional Content Priority Concerns of menu Planner Wants and needs Concept of Value Item Price Object of Property Visit Socio-Economic Factors Demographic Concerns Ethnic Factors Religious Factors Guest Quality of Item Cost Availability Peak Volume Production and Operating Concerns Sanitation Concerns Layout Concerns Equipment Concerns Flavour Consistency Texture/Form/Shape Visual Appeal Aromatic Appeal Temperature
  • 54. Menu Planning StrategiesMenu Planning Strategies Rationalization its objective is simplification for the sake of operational efficiency i.e., cross-utilization menu items use the same raw ingredients - Menu when carefully plan can be a streamlining of the purchasing, receiving, storing, issuing, production, and serving control points. - High-quality convenience foods make it easier to offer new items without having to buy additional raw ingredients Dedy Wijayanto 54
  • 55. Factors That Influence MenuFactors That Influence Menu Planning StrategiesPlanning Strategies Needs and wants of target markets Several items from same ingredients Storage requirements Personnel skill levels Product availability / seasonality Quality and price stability Sanitation procedures Dedy Wijayanto 55
  • 56. External FactorsExternal Factors That Influence Menu ChangesThat Influence Menu ChangesConsumer Demands decide which potential markets wants to attract Economic Conditions cost of ingredients, potential profitability of new menu items Competition many not want to serve next door’s best Supply Levels seasonal items, price to the quality and quantity Dedy Wijayanto 56
  • 57. Internal FactorsInternal Factors That Influence Menu ChangesThat Influence Menu Changes  Facility Meal Patterns existing meal periods - breakfast, lunch and dinner  Concept and Theme the image may rule out certain foods that do not blend with its theme and decor  Operational System costs for new equipment to the successful production and service of new menu items Dedy Wijayanto 57
  • 58. Pricing ApproachesPricing Approaches  Subjective Price Methods intuition and knowing your guests (failed to relate profit and costs)  The Reasonable Price Methods presumes value to the guest (what charge is fair and equitable)  The Highest Price Method sets the highest price the guests are willing to pay Dedy Wijayanto 58
  • 59. Pricing ApproachesPricing Approaches The Loss Leader Method an unusually low price is set for an item (or items) to bring guests in The Intuitive Price Method wild guess about the selling price (pricing methods based on assumptions, hunches and guesses) Dedy Wijayanto 59
  • 60. Pricing ApproachesPricing Approaches  Simple Mark-up Pricing Methods designed to cover all costs and to yield the desired profit. Three Steps: 1. Determine the ingredients’ costs 2. Determine the multiplier 3. Establish a base selling price Dedy Wijayanto 60
  • 61. MultiplierMultiplier If food cost is to be 40% Multiplier = 1 / desired food cost% = 1 / .40 = 2.5 Dedy Wijayanto 61
  • 62. Base Selling PriceBase Selling Price If ingredient cost is $3.32 Base Selling Price = Ingredient Cost x Multiplier $8.30 = $3.32 x 2.5 A base selling price in not necessarily the final selling price Dedy Wijayanto 62
  • 63. Prime-IngredientPrime-Ingredient Mark-Up MethodMark-Up Method Base selling price = Prime Ingredient Cost x Multiplier $8.30 = $1.59 x 5.22 or food cost is about 19% Dedy Wijayanto 63
  • 64. Mark-Up withMark-Up with Accompaniment CostsAccompaniment Costs Entree / Primary Costs $3.15 Plate Cost +$1.25 Food Cost $4.40 Mark-Up Multiplier x 3.3 (30% food cost) Base Selling Price $14.52 Dedy Wijayanto 64
  • 65. Determining the Price MultiplierDetermining the Price Multiplier Based upon:  experience or “rule of thumb”  contribution margin  impact of sales mix  does not reflect higher or lower labor cost  assume food cost associated with producing menu item are know Dedy Wijayanto 65
  • 66. Contribution MarginContribution Margin Pricing MethodPricing Method Contribution Margin refers to the amount left after a menu item’s food cost is subtracted from its selling price. Two steps in setting base selling price: 1. Determine the average contribution margin required per guest Non-Food + Required Profit = Ave. Contribution Margin Required/guest No. of Expected guests $295,000 + $24,000 = $3.75 85,000 Dedy Wijayanto 66
  • 67. Contribution MarginContribution Margin Pricing MethodPricing Method 2. Determine the base selling price for a menu item Base selling price = average contribution margin + Standard food cost $7.35 = $3.75 + $3.60 Dedy Wijayanto 67
  • 68. Ratio Pricing MethodRatio Pricing Method The ratio pricing method determines the relationship between food costs and all non-food costs plus profit requirements and uses this ratio to develop base selling price for menu items. Three steps 1. Determine the ration of food costs to all other cost plus profit requirements All non-food costs + Required profit = Ratio Food costs Dedy Wijayanto 68
  • 69. Ratio Pricing MethodRatio Pricing Method 2. Calculate the amount of non-food cost and profit required for a menu item Non-food cost and profit required = Standard food cost x ratio $5.03 = $3.75 x 1.34 3. Determine the base selling price for the menu item Base Selling Price = Non-food cost and profit required + Standard food cost $8.78 = $5.03 + $3.75 Dedy Wijayanto 69
  • 70. Simple Prime Costs MethodSimple Prime Costs Method The term prime cost refers to the most significant costs in a food service operation: food, beverage and labor. A simple prime costs pricing method involves assessing the labor costs for the food service operation and factoring these costs into the pricing equation. Three steps: 1. Determine the labor costs per guest Labour Cost per guest = Labour costs / No. of expected guests $2.80 = $210,000 / 75,000 Dedy Wijayanto 70
  • 71. Simple Prime Costs MethodSimple Prime Costs Method 2. Determine the prime costs per guest Prime Cost per guest = Labour cost per guest + menu item’s food cost $6.55 = $2.80 + $3.75 3. Determine base selling price Base Selling Price = Prime costs Per guestDedy Wijayanto 71
  • 72. Specific Prime Cost MethodSpecific Prime Cost Method Specific Prime Cost Method - develops mark- ups for menu items so that the base selling prices for the items cover their fair share of labor costs. Divide the menu items into 2 categories: (A) extensive preparation (B) non extensive preparation clean up, and other non-preparation activities Dedy Wijayanto 72
  • 73. Specific Prime Cost MethodSpecific Prime Cost Method Allocates appropriate % of total food costs and labor costs to each category (A) 60% of the total food cost (B) 40% of the total food cost (A) & (B) 55% of all labor costs 45% of all labor costs is incurred for service, Dedy Wijayanto 73
  • 74. Specific Prime Cost Method -Specific Prime Cost Method - CalculationsCalculations  Operating Category A Category B Budget Item Budget % (extensive preparation) (Non-extensive Preparation)  Items Items Dedy Wijayanto 74 (1) (2) (3) (4) Food Cost35% 60% of 35% = 21% 40% of 35% = 14% Labour Cost 30% 55% of 30% = 17% 40% of 13% = 5% All Other Cost 20% 60% of 13% = 8% 40% of 20% = 8% Profit 15% 60% of 15% = 9% 40% of 15% = 6% Total 100% 67% 33% Mark-Up 100% =2.9% 67% = 3.2 33% = 2.4 Multiplier 35% 21% 14%
  • 75. Important Pricing ConsiderationsImportant Pricing Considerations The Concept of Value (price relative to quality) The Basic Law of Supply and Demand Volume Concerns Must be Considered Price Charged by the Competition for a similar Product Dedy Wijayanto 75
  • 76. Evaluating The Menu:Evaluating The Menu: Menu EngineeringMenu Engineering Basic Menu Engineering Process: Stars - items that are popular profitable Plowhorses - items that are not profitable but popular Puzzles - items that are profitable but no popular Dogs - items that are neither profitableDedy Wijayanto 76
  • 77. Defining ProfitabilityDefining Profitability  Contribution Margin a “high” contribution margin for an individual menu item would be one that is equal to or greater than the average contribution margin Average Contribution Margin = Total Contribution Margin Total Number of Item Sold Dedy Wijayanto 77
  • 78. Defining PopularityDefining Popularity Popular Index bases upon the notion of “expected popularity” For example: 4 items on a menu and each is assumed to be equally popular, the sales of each would be expected to be 25% 100% ÷ 4 = 25% Menu engineering assumes that an item is popular if its sales equal 70% of what is expected.. For example: a food item is considered popular if its sales is:Dedy Wijayanto 78
  • 79. Menu Engineering WorksheetMenu Engineering Worksheet Dedy Wijayanto 79 Menu Engineering Worksheet Date: 6/10/00 _________________ Restaurant: ____________________________ Meal Period: Dinner (A) Menu Item Name (B) Number Sold (MM) (C) Menu Mix % (D) Item Food Cost (E) Item Selling Price (F) Item CM (E - D) (G) Menu Costs (D x B) (H) Menu Revenues (E x B) (L) Menu CM (H - G) (P) CM Category (R) MM% Category (S) Menu Item Classific- ation Chicken Dinner 420 42% $2.21 $4.95 $2.74 $928.20 $2079.00 $1150.80 Low High Plow- horse NY Strip Steak 360 36% 4.50 8.50 4.00 1,620.00 3,060.00 1,440.00 High High Star Lobster Tail 150 15% 4.95 9.50 4.55 742.50 1,425.00 682.50 High Low Puzzle Tenderloin Tips 70 7% 4.00 6.45 2.45 280.00 451.50 171.50 Low Low Dog Column Totals N 1,000 l $3570.70 J $7015.50 M $3444.80 K = l / J O = M / N Q = (100%/items) (70%) Additional Computations: 50.9% $3.44 17.5% (Box K = Food Cost %; Box O = Average Contribution Margin)
  • 80. Improving The MenuImproving The Menu Managing PlowhorsesManaging Plowhorses Items low in contribution margin, but high in popularity Increase prices carefully Test for demand Relocate the item to a lower profile on the menu Shift demand to more desirable items Combine with lower cost products Assess the direct labor factor Consider portion reduction Dedy Wijayanto 80
  • 81. Improving The MenuImproving The Menu Managing PuzzlesManaging Puzzles Items high in contribution margin but low in popular  Shift demand to these items  Consider a price decrease  Add value to the item Dedy Wijayanto 81
  • 82. Improving The MenuImproving The Menu Managing StarsManaging Stars Items high in contribution margin and high in popularity  Maintain rigid specifications  Place in a highly visible location on the menu  Test for selling price inelasticity  Use suggestive selling techniques Dedy Wijayanto 82
  • 83. Improving The MenuImproving The Menu Managing DogsManaging Dogs Items that are low in contribution margin and low in popularity: Candidates for removal from the menu Dedy Wijayanto 83