Restaurant Menu Engineering PDF

| MENU | Example of Menu Engineering The number of restaurant menu categories depends on: - Item placement - dividing menu into sections - Type of cuisine - Place high-profit items next to more - Dining style...

| MENU | Example of Menu Engineering The number of restaurant menu categories depends on: - Item placement - dividing menu into sections - Type of cuisine - Place high-profit items next to more - Dining style (fine dining, casual, fast food, etc.) expensive but less profitable items - Target guests - Item description - omitting money signs to make the customers less price-sensitive 9 Categories in a Menu - Using emotional and descriptive language 1. Appetizers or Starters - Highlighting high-profit items - through boxes, bold 2. Entrées or Main Course text, or images 3. Side Dishes 4. Salads Study shows that the placement, description, and pricing 5. Soups of items can impact sales up to 25% (Source: NRA) 6. Sandwiches and Wraps Customers are more likely to order menu with descriptive 7. Desserts labels and can increase sales by 27% (Cornell University) 8. Beverages 9. Specials - du jour menus (temporary menus) Elements of Menu Engineering 1. Analyze your current menu Benefits of Optimizing Menu Categories a. Popularity Improved sales b. Profitability Better customer satisfaction c. Menu item cost Reduced food waste 2. Build a new profitable menu Better menu pricing a. Menu item placement Improved staff efficiency b. Menu item pricing c. Menu item description Restaurant Menu Design Mistakes Too many or too few items - ⅔ classics, ⅓ smth Benefits of Menu Engineering new/creative Increase profitability by identifying high-profit items No internet presence Improve customer satisfaction Menu not durable Stay competitive by standing out Infrequent price updates - review menu/change Reduce waste and lower costs price twice a year Attract new customers and retain existing ones Lagging price adjustments Infrequent item updates - don’t put menu items Steps in Menu Engineering that are not popular 1. Choose a time period to analyze your menu Missing specialty drinks 2. Create a menu costing strategy (analyze Offering multiple menus profitability and popularity by: Keep things simple; standout items a. Analyze sales and inventory reports in Under-training staff POS Lack of menu itemization reports - know what b. Customer feedback & reviews items sell and what not c. Talk to your waiters and bartender) Poor menu copywriting - the description should 3. Categorize menu items based on profitability and be grammatically correct and concise popularity Illogical menu layout - emphasize the most profitable items Menu Engineering Categories Selling similar items - decreases its appeal; no Stars - high profitability, high popularity direct competition Puzzles - high profitability, low popularity Not keeping up with the trends Plow horses - low profitability, high popularity Not utilizing limited time offers Dogs - low profitability, low popularity Menu Engineering Designing Your Menu - Analyzes and optimizes menu items to - Highlights stars maximize profitability - Promote puzzles and plow horses - adjust price of - Includes using menu matrix techniques: prices, signature dish to increase profit or introduce placement, and description similar but more profitable dish - Eliminate dogs How to Promote Menu Items and Increase Profit Guide Change position in menu - It helps the guest in making a good choice for Change menu item name himself Prepare attractive menu descriptions - The menu is divided into different courses and Make discounts on puzzles every course has a choice so guest can choose Lower menu item food costs from a variety of dishes Increase menu item prices for plowhorses Change a recipe Menu item placement Pair your horses with beneficial drinks, sides - Menu engineering is an important stop in reaching More promotion ideas profit potential, so consider each item from the perspective of its profit margin and popularity | MENU DEVELOPMENT | Highlight your best sellers The Menu - Place it on top - The single most important piece of marketing - Put the pictures on the left and the text on the right collateral for any restaurant (study shows that the left brain processes faster than the right. The basis of kitchen organization - Avoid too many peso signs 1. Menu - Include visible merchandising (highlight those - The kinds of dishes to be produced dishes that have the highest gross margin) obviously determine the jobs that need to - Digital menu boards (give fast casual restaurant be done operators a great opportunity to display food - The basis of the entire operation photography and highlight the different dishes - each day) What is a menu? - List of food and beverage items that can be Types of menu: offered by a food service outlet BY PRICE - The menu, “like much of the terminology of 1. Á LA CARTE MENU cuisine, is French in origin, it ultimately derives - Each food item is priced individually from latin “minutus”, something made small - Guest can choose anything from the menu - The original menus that offered consumers dishes made as per order choices were prepared on a small chalkboard, in - Dishes can be modified french a carte; so foods chosen from a bill of 2. TABLE D’HÔTE MENU fare are described as “á la carte” “according to - Menu priced as a whole the board.” - Guest has a limited choice - Dishes made as prepared in advance Importance of a menu - Dishes cannot be modified - Sells 3. COMBINATION MENU - It is a great silent salesperson and stimulate - Menu combines ^^ sales - Takes great effort to compile the menu MEAL SCHEDULES 1. FIXED MENUS Image - Menu which never change for a period - Signature of the restaurant, gives it identity time - Has to be attractive, informative, and appealing - Particularly used in establishments where - It promotes the image of the property there is a less frequency of guests who are coming for a short visit Experience - Also widely used in fast food joints and - Contributes to the dining experience some other catering establishments - Guests find something to talk about the menu 2. CYCLIC MENUS Source of Information - Menu which change after a certain period, - It informs the guest about every aspect of the can be daily, weekly, or monthly restaurant - Industrial canteens and corporate houses - Price of a dish, photos, description of a dish, etc. offer such menus for the staff members BY MEAL TIMES | TARGET MARKET | 1. Breakfast menus 2. Lunch menus Types of customers 3. Dinner menus - Refers to the age, sex, occupation, 4. Snack menus socio-economic status and nutritional needs for the customers BY SPECIALTY 1. Poolside menus - For instance, the school canteen where students 2. Children’s menus are the major patrons of the establishment, the 3. Diet menus canteen managers must offer foods high in 4. Wine menus carbohydrates and protein since most of the students are growing kids Factors to consider in menu planning - Availability of foods - a menu is primarily based Environmental conditions on what can be bought in the market. This - Specific occasions like christmas, birthdays, should be the basis for planning specific dishes anniversaries, etc. require special menus - Always consider food in season. Think of - The manager must prepare a complete list of main available ingredients as substitutes for those dishes, entrées, appetizers, salads and desserts off-season from which patrons will choose from Food Habits of Customers Personnel and Facilities - Food managers can take a survey in the vicinity - Includes the number of employees needed to work where food establishments is located in different areas such as in preparation, cooking, - The survey can consider the culture of the and services people living in the vicinity (their customs, traditions, religion, etc.) The Market should be aligned - People will patronize a food establishment - If there’s too many competitors, you need to stand where their needs and desires, as well as their out beliefs and practices are not violated in the food Concepts - affects how patrons view the brand they eat. - Concept that would mostly attract customers, not just something that resonates with you Budget - Should be consistent and cohesive - A food establishment has a definite budget - Every aspect should form the image or identity of intended for food preparation the brand - Control in expenses, by operating within a given budget allows the food manager to predict cost Segmenting - choose target and at the same time predict profit - effectively and efficiently reach - Expenses incurred in food compensates for the - Should not be broad or limited bulk of sale expected or predicted for the day Targeting - Define target market Amount of Time Available - Create persona - ideal persona - know their - Food preparations must meet deadlines lifestyle - Customers have their own mean schedule to meet Segmentation - Quick service is one important asset of an ideal Demographics establishment ○ Gender - Food ordered should be prepared in the shortest ○ Age time possible ○ Sex ○ Status ○ Income Psychographics ○ Personality ○ Value ○ Interests ○ Lifestyle Geographics ○ Location ○ Climate ○ Urban/Rural Behavioral ○ Spending ○ Frequency ○ Decision ○ Loyalty  | CONCEPT AND LOCATION | Size of Potential Market What makes a good location for a restaurant? - The size of the potential market for the restaurant - Depends on the type of restaurant and the must be big enough to support and sustain your clientele which it appeals restaurant concept The Grid Price Structure of a Restaurant - Inside a mall - The price structure is a major determinant - Convenient to mall goers - Like location, the price must appeal to target market Kamalig KTV Restaurant - Located in Tanay Roadside Choosing a Location - Located along a main road - Mostly for travelers, those who are traveling to - Selecting a restaurant site is both a science and Tanay and want to stopover and eat an art - Some areas have too many restaurants Bukit Bintang Hainanese Chicken Rice - Need to consider the area’s share of employed - Located in the 7th kitchen lounge in PBCom persons, income level, population age, and food Tower in Salcedo Village consumed away from home - Convenient for employees who work inside the - Some areas are losing population, others are building and for people in the Salcedo area - Not really convenient for outsiders gaining - More importantly, the amount and intensity of Gonzaga competition needs to be considered - Located inside Ateneo - The main cafeteria of students Location Criteria - Accessible and convenient - What is good for one restaurant may not work for - Many options and relatively affordable for students on budget another - Focus is potential market JSEC - Located inside school Demographics - Convenient for its main target market (students Accessibility and teachers) to access Number of potential customers passing by - Many are coming from SOM Distance from potential market - Reputation: RK (those with more spending power) Desirability of surroundings ISO - Factors mentioned previously must then be - Even inside school, each concepts location weighed against costs: caters to different clientele - Rent - Far from most of the classrooms - Remodeling an existing building or buying Nine Fresh Taiwan Halo-Halo - Located in A. Mabini, San Juan - Some location factors are critical; if a site does not - Hard to park meet them, it must be ruled out - E.g. parking Bun Run - Cars or electric - Located in A. Mabini, San Juan - Food traffic - No parking; in the middle of two roads so hard to - Must have own restroom inside stop by. - The atmosphere of the restaurant must fit the location - Even though part of a chain, it can be different - Ethnic background, income level, number of children are important - Mcdonald’s, Burger King, and Wendy’s are moving away from having a standard design for all locations Some restaurants create their own location Restaurant topographical surveys - These restaurant do not place the same priority Look for restaurants with similar concepts on convenience of location Gives an idea of restaurant saturation - They create the location of food, service, and Look for market gaps atmosphere - People will go out of desire Cost of the Location Two potential values of a restaurant: Location ○ Real estate value - Others say that even the best location is difficult ○ Value as a profit generator to succeed with Cost depends on location ○ Price of land per sqm, Cost of construction Sources of location information per area, Rent - Based on asking the right questions real estate agents, Visibility, Accessibility, and Design Criteria income level, - Visibility and accessibility are important criteria growth patterns, - Visibility: the extent to which the restaurant can be traffic flows, seen restaurant competition, - Accessibility: the ease with which potential guests restaurant scene in the area may arrive; parking access chamber of commerce, - Design: bank, - Restaurant 2 Main Components: Front of other restaurant owners House, Back of House – should correlate with concept Traffic Generators - Exterior, entrance and holding area, bar area, Hotels Business parks dining area, kitchen, receiving, storage, trash Indoor arenas - Space is a major issue Retail centers - Less seats with higher prices or overcrowded Residential neighborhood with cheaper prices? - Lighting Knockout criteria - Color: lighter colors - bigger and happier Proper zoning - Layout Drainage, sewage, utilities Minimal size Short lease Some Location Information Checklist Excessive traffic speed 1. On-street parking Access from a highway or street 2. Type of soil Visibility from both sides of the street 3. Drainage 4. Existing structures Other Location Criteria 5. Underground utilities Market population Family income 6. Building limitations Growth or decline of the area 7. Type of energy available The restaurant row or cluster concept 8. Parking requirements Suburban and Mall Location - Depending on menu and style, restaurants do well in variety of locations *Establishments that do better alone: established Match location with concept Restaurant Chain Location Specifications - chains have specified or required location Takeover Locations- e.g. buy an existing restaurant - Can be the existing restaurant’s location doesn't match the concept MODULE The menu directly imparts each of the numerous resources that the restaurant management has available to meet marketing and financial goals. These resources include: Labour Food and beverage products Equipment for product storage Operating expenses Utility/related costs Standard operating procedures. To assist in this development process you may also consider: Past menus Competitors menus Menu analysis (discussed in Term 1) Standard recipes Ingredient availability Feedback from guests and staff. For each category of menu item you must try to ensure that the following factors are considered: Variety – a range of temperature, preparation methods, texture, shape and color should be available within a menu category. Shape and size of menu items Flavour Color – this aspect of food presentation has become more important in recent years and guests have certain expectations of how foods should look. Composition and balance - this will include the item’s nutritional benefit. Many chefs today are aware that the plate must look as if an artist has painted it. The top chefs have learnt how to achieve the WOW factor. A number of factors contribute to the menu’s financial success: The cover Some theme restaurants have menus around 60cm x 45cm Most menus are printed onto paper. Menu Shape Menu descriptions Font Style Menu Layout