Developing a Profitable Food Operation CMAA
- 1. Fritz Gitschner, CMC cbp1956@aol.com Developing a Profitable Food Operation in Clubs
- 2. Before We Start... • This will be a discussion-based session • Assumptions – strong knowledge of controls – understanding of the menu engineering concept • Is there an expert in the house? • You know your operation
- 3. Menu Planning & Analysis Developing a Profitable Menu Mix
- 4. Open Menu Planning • Create a creative environment • Do your research • Utilize your resources • Solicit input • Develop incentives • Cross-train for understanding • Support your team
- 5. Creating the Profitable Mix • Use Open Menu Planning • Utilize Under-Utilized Products • Create Visual Value Perception • Merchandise Menu Items • Analyze the Menu
- 6. Menu Analysis • Developed over 20 years ago • Good concept…based on averages • Should be used as a tool…not a rule • Can’t do it in your head • Can use it for multiple outlets
- 7. CM $ vs. FC% • Bank dollars • Judge by percentages Computers • Just another tool • Can’t make decisions - only information
- 8. Which Would You Rather Sell? Ribeye Chix. Florentine Lobster Sold 15 25 8 Sales $284.25 $267.50 $280.00 Food Cost $99.48 $57.75 $112.00 Labor @ $8 (2hr) $16 (3 hr) $24 (1/2 hr) $4 Total Cost $115.48 $81.75 $116.00 ICM $11.25 $7.23 $20.50 TCM $168.77 $185.75 $164.00 TCM= (Tot. Sales – Tot. Costs) / # Sold
- 9. Menu Engineering - Some Issues • 70% rule • Categorical dispersion • Interpreting item rankings • Taking action - making the change
- 10. The 70% Rule Each competing item should achieve 70% or better of its equal share to be considered to have a high popularity index.
- 11. The Menu Engineering Grid 70% ACM $ X X Puzzle
- 12. The Puzzle • High Average Contribution Margin • Low Menu Mix Percentage What are some examples?
- 13. The Menu Engineering Grid 70% ACM $ X X X X Puzzle Star
- 14. The Star • High Average Contribution Margin • High Menu Mix Percentage What are some examples?
- 15. The Menu Engineering Grid 70% ACM $ X X X X X X Puzzle Star Plowhorse
- 16. The Plowhorse • Low Average Contribution Margin • High Menu Mix Percentage What are some examples?
- 17. The Menu Engineering Grid 70% ACM $ X X X X X X X X X Puzzle Star Dog Plowhorse
- 18. The Dog • Low Average Contribution Margin • Low Menu Mix Percentage What are some examples?
- 19. Interpreting Item Rankings • Don’t ditch the “dogs” • Use the whole worksheet – Potential Food Cost – Menu Contribution Margin • Start with the numbers • Find the reasons behind the performance
- 21. Categorical Dispersion... Not all dogs are bad 70% ACM $ X X X X X X X X X Puzzle Star Dog Plowhorse
- 23. Menu Planning & Analysis Product Utilization Developing a Profitable Menu Mix
- 24. Utilize Under-Utilized Products • Move from primal to sub-primal cuts • Use “lesser-known” seafood products • Know your vendors and product sources • Use regional and seasonal products • Be creative
- 25. Menu Planning & Analysis Product Utilization Managing the Cycle Developing a Profitable Menu Mix
- 26. Manage the Cycle: • Set Standards • Monitor Product Quality • Ensure Consistency • Control REAL Costs • Build your team • Play an active role
- 27. Menu Planning & Analysis Product Utilization Managing the Cycle Menu Merchandizing Developing a Profitable Menu Mix
- 28. Profitability Flow Chart Cost $$ Price $$ Flow Presentation
- 29. Merchandise Menu Items • Make “Culinary Music”
- 30. Roast Beef with horseradish mashed potatoes and sautéed fresh garden vegetables Culinary Music
- 31. Culinary Music Slow Roasted Sirloin of Beef with horseradish whipped potatoes and bouquetiere of fresh garden vegetables
- 32. Herb Infused Roasted Sirloin of Beef and horseradish potatoes with organically grown macerated vegetables Culinary Music
- 33. Culinary Music Hand Selected Sirloin of Beef dry aged and seasoned with chef's selection of fine herbs, slow roasted, served with Yukon gold whipped potatoes flavored with fresh Oregon grated horseradish and confit of vegetables
- 34. Merchandise Menu Items • Make “Culinary Music” • Create “High Real-Estate Values” • Use change as an asset • Remember your markets • Explore new territories • Take calculated risks
- 35. The Profitable Menu Mix Menu Planning & Analysis Product Utilization Visual Value Perception Managing the Cycle Menu Merchandizing
- 36. Create Visual Value Perception • Plate size, shape, color, style • Functional garnishes • Portion sizes • Excitement • Culinary blueprints
- 37. Gravlax with Mustard Dill Sauce
- 38. Curly Endive Dill Sprig Puff Pastry Strip Apple Smoked Bacon Strip Mustard Sauce 25 yr. Old Basalmic Vinegar Beluga Caviar Gravlax Tortilla Ring Gravlax with Mustard Sauce
- 39. Gravlax with Dill Sauce Dill Puff Pastry Strip Bacon Sauce Vinegar Caviar Gravlax Tortilla Ring Endive
- 40. Let’s Review • Why plate presentation? • What is plate presentation • How do I develop and implement: – plate presentations – plate demonstrations • What is the impact of presentations in the operation?
- 41. What is Plate Presentation? • Balance • Contrast • Visual excitement
- 42. Baked Fillet of Seabass on piquante tomato sauce with aged balsamic vinegar and potato-olive tart
- 43. Developing and Implementing Plate Presentations • Use Plate Diagrams • Ask Questions • Use Functional Garnish • Train, Train, Train • Use the Right Equipment • Follow-up
- 44. The Basics Creativity Quality Training Consistency •Staffing/Training •Quality Control –Culinary Blueprints –Organizational Meetings –Communications Quality, Creativity, and Consistency
- 45. Purchasing/Receiving • Bid process/contacts • Receiving/security • Quality Standards
- 47. In the Storeroom •Continue the Quality Quest •Label and Date all Product •Enforce Product Rotation Policy
- 48. Food Production Includes… • The Butcher Shop • Hot Food Preparation • A la Carte • Banquet Production • Pastry and Baking • Chef’s Tables
- 49. The Butcher Shop •Quality •2-Day Product Turnover •Full Product Utilization
- 50. Hot Food Production • Organization • Training • Technology • Product Utilization
- 51. Garde Manger • Recipes • Quality • In-House Production
- 52. A la Carte • Food Safety • Consistency • Creativity • Teamwork
- 53. Banquet Production • Planning • Culinary Blueprints • Consistency • Creativity • Quality
- 55. 1 2 3 4 5 6
- 56. Banquet Production • Planning • Culinary Blueprints • Consistency • Creativity • Quality
- 57. Developing and Implementing Plate Presentations • Use Plate Diagrams • Ask Questions • Use Functional Garnish • Train Train Train • Use the Right Equipment • Follow up
- 59. Implementing Plate Presentations in Your Operation • Consistency • Morale • Planning • History • Win-Win Situation
- 60. Consistency • Purchasing • Receiving • Storage • Pre-prep • Production • Service
- 62. Planning • Catering Department • Manpower • Equipment Needs • China, Glass, Silver • Smallwares • Station/Line Setup
- 63. History • Events • Food Items/Plate Diagrams • Library • Customer Inquiries and Referrals
- 64. Win - Win Situation
- 65. Summary Plate presentation contributes to: • consistency • profitability • visual stimulation • high employee morale /development • customer satisfaction