CHAPTER 7: CHAPTER 7: THE MENUTHE MENU• The Menu • Capability/Consistency• Equipment Availability• Pricing• Nutritional Value• Contribution Margin• Flavor• Accuracy• Kids’ Menus• Menu

• Items• Types• Analysis• Design & Layout

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THE MENUTHE MENU• The most important part of The most important part of

the restaurant concept.the restaurant concept.• Requires careful analysis.Requires careful analysis.• Menu must reflect the Menu must reflect the

concept & vice versa.concept & vice versa.• Responsibility for Responsibility for

developing the menu may developing the menu may begin with the chef, begin with the chef, individually or in individually or in collaboration with the collaboration with the owner/manager & perhaps owner/manager & perhaps cooks & servers. cooks & servers.

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CONSIDERATIONS IN MENU PLANNINGCONSIDERATIONS IN MENU PLANNING• Needs and desires of guests.Needs and desires of guests.• Capability of cooks.Capability of cooks.• Equipment capacity & layout.Equipment capacity & layout.• Consistency & availability of ingredients.Consistency & availability of ingredients.• Price & pricing strategies.Price & pricing strategies.• Nutritional value.Nutritional value.• Contribution theory.Contribution theory.• Accuracy in menu.Accuracy in menu.• Actual menu items.Actual menu items.• Menu design & layout.Menu design & layout.• Standard recipes.Standard recipes.• Food cost percentage.Food cost percentage.

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CAPABILITY/CONSISTENCYCAPABILITY/CONSISTENCY• The capability of the chefs or The capability of the chefs or

cooks to produce the quality and cooks to produce the quality and quantity of food necessary is a quantity of food necessary is a basic consideration. basic consideration.

• Standardized recipesStandardized recipes• List quantities of ingredients & List quantities of ingredients &

step-by-step methods to step-by-step methods to produce a quality product.produce a quality product.

• Elements that have an effect Elements that have an effect on capability & consistency:on capability & consistency:• Menu complexity.Menu complexity.• Number of meals served.Number of meals served.• Number of people to Number of people to

supervise.supervise.

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EQUIPMENTEQUIPMENT Purchase the right equipment to Purchase the right equipment to

achieve maximum production achieve maximum production efficiency.efficiency.• Many establishments plan the Many establishments plan the

equipment according to the equipment according to the menu.menu.

Efficient layout:Efficient layout:• Systematic flow of items from Systematic flow of items from

receiving clerk to guests assures receiving clerk to guests assures operational efficiency.operational efficiency.

Avoid over use:Avoid over use:• Too many menu items requiring Too many menu items requiring

one piece of equipment may one piece of equipment may slow service.slow service.

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AVAILABILITYAVAILABILITY• Constant, reliable source Constant, reliable source

of supply must be of supply must be established. established.

• Must take advantage of Must take advantage of seasonal items when seasonal items when they are at their lowest they are at their lowest price & best quality. price & best quality.

• High-quality ingredients High-quality ingredients make a high quality make a high quality product, & fresh must be product, & fresh must be that – Fresh!that – Fresh!

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PRICEPRICEFactors in building price-Factors in building price-

value:value:• Amount of product.Amount of product.• Quality of product.Quality of product.• Reliability or consistency of Reliability or consistency of

product.product.• Uniqueness of product.Uniqueness of product.• Product options or choices.Product options or choices.• Service convenience.Service convenience.• Comfort level.Comfort level.• Reliability or consistency of Reliability or consistency of

service.service.• Tie-in offers or freebies.Tie-in offers or freebies.

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PRICING STRATEGIESPRICING STRATEGIESTwo main ways to price a menu:Two main ways to price a menu: Comparative approach:Comparative approach:

• Analyzes competitions’ prices and determines Analyzes competitions’ prices and determines selection of appetizers, entrees & desserts.selection of appetizers, entrees & desserts.

Individual items are selected & priced.Individual items are selected & priced. Cost of ingredients must equal predetermined food cost Cost of ingredients must equal predetermined food cost

percentage.percentage.

Ratio method:Ratio method:• Price individual item & multiply it by the ratio Price individual item & multiply it by the ratio

amount necessary to achieve the desired food cost amount necessary to achieve the desired food cost percentage.percentage.

• May lead to weighted average approach: May lead to weighted average approach: Food cost percentage, contribution margin & sales Food cost percentage, contribution margin & sales

volume are weighted.volume are weighted.

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VALUE CREATIONVALUE CREATION Two components:Two components:

• What you provide?What you provide?• What you charge for it?What you charge for it?

To build value, you need To build value, you need to:to:• Increase the perception Increase the perception

of value of what you of value of what you provide.provide.

• Lower the price you Lower the price you charge for it.charge for it.

• Do both of the above.Do both of the above.

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FOOD COST PERCENTAGEFOOD COST PERCENTAGE Varies with sales.Varies with sales. Target is about 33% of sales.Target is about 33% of sales. Calculating food cost percentage:Calculating food cost percentage:

Opening inventory + purchases – closing inventory =Opening inventory + purchases – closing inventory =

Cost of food consumed.Cost of food consumed.

Food cost/sales of food = Food-cost percentageFood cost/sales of food = Food-cost percentage

EXAMPLE: $10,000 Opening inventory + $66,666 Purchases+ storeroom requisitions

= Percentage

$76,660 Total food consumed - $10,000 Closing inventory $66,660 = Cost of food consumed $66,660 / $200,000 = 33%

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NUTRITIONAL VALUENUTRITIONAL VALUE• Greater public awareness of healthy food & individual Greater public awareness of healthy food & individual

wellness has prompted a change in cooking methods.wellness has prompted a change in cooking methods.• Demand for healthier items like chicken & fish is increasing.Demand for healthier items like chicken & fish is increasing.• Changes in type of cooking oil.Changes in type of cooking oil.• Boiling, poaching, steaming, roasting, etc., as opposed to Boiling, poaching, steaming, roasting, etc., as opposed to

frying.frying.• Lower-fat menu items.Lower-fat menu items.• More meatless and vegetarian options.More meatless and vegetarian options.

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CONTRIBUTION MARGINCONTRIBUTION MARGIN

• Difference between the sales & the cost Difference between the sales & the cost of the item.of the item.

• Amount goes towards covering fixed & Amount goes towards covering fixed & variable costs.variable costs.

EXAMPLE:EXAMPLE: Steak selling price: $10.95Steak selling price: $10.95- Steak cost: - Steak cost: $ 5.00 $ 5.00 = Contribution margin: $ 5.95= Contribution margin: $ 5.95

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FLAVORFLAVOR• Flavor is the sensory Flavor is the sensory

impression of a food impression of a food or other substance or other substance determined by determined by chemical senses. chemical senses.

• Taste involves all Taste involves all the senses: the senses: • AromaAroma• TextureTexture• SightSight• SoundSound

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ACCURACYACCURACY• Restaurants must be Restaurants must be

accurate and truthful accurate and truthful when describing when describing dishes on the menu. dishes on the menu. • If beef is described as If beef is described as

prime, then it must be prime, then it must be prime.prime.

• Some restaurants Some restaurants have been heavily have been heavily fined for violations of fined for violations of accuracy in menu. accuracy in menu.

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KIDS’ MENUKIDS’ MENU• Restaurants that cater Restaurants that cater

to families usually to families usually have a separate kids’ have a separate kids’ menu—one using bold menu—one using bold colors & catchy make-colors & catchy make-believe characters. believe characters.

• Most restaurants can Most restaurants can provide fun placemats, provide fun placemats, crayons & small take-crayons & small take-home prizes for kids. home prizes for kids.

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MENU ITEMSMENU ITEMS• Independent restaurants tend to be more creative Independent restaurants tend to be more creative

than chain restaurants.than chain restaurants.• Menu items selected depend on type of Menu items selected depend on type of

restaurant.restaurant.• Appetizers and soups:Appetizers and soups:

• 6-8 is adequate for most establishments.6-8 is adequate for most establishments.• Salads:Salads:

• Preferred starter in many restaurants.Preferred starter in many restaurants.• Entrees:Entrees:

• At least 8 in a table-service restaurant.At least 8 in a table-service restaurant.• Desserts:Desserts:

• Can be purchased, made or finished off in-house.Can be purchased, made or finished off in-house.• Matching/pairing:Matching/pairing:

• Couple a type of wine with a general class of food.Couple a type of wine with a general class of food.

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MENU TYPESMENU TYPES Dinner-house:Dinner-house:

• Separate similar entrees.Separate similar entrees. A la carte:A la carte:

• Individually priced items, most often used menu.Individually priced items, most often used menu. Table d’hôte :Table d’hôte :

• Selection of several dishes from which patrons make a Selection of several dishes from which patrons make a complete meal at a fixed price.complete meal at a fixed price.

Du jour menu:Du jour menu:• Lists the food items served only on a particular day.Lists the food items served only on a particular day.

Cyclical:Cyclical:• Generally used in institutions. Generally used in institutions. • Menus are repeated in cycle every few days. Menus are repeated in cycle every few days.

California:California:• Can order any menu item at any time of day.Can order any menu item at any time of day.

Tourist:Tourist:• Used to attract tourists to a particular restaurant. Used to attract tourists to a particular restaurant.

Degustation:Degustation:• A sample of the chef’s best dishes.A sample of the chef’s best dishes.

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MENU ANALYSISMENU ANALYSIS• Should be a balance between a Should be a balance between a

menu too high in food cost & menu too high in food cost & too low in food cost.too low in food cost.

• Menu engineeringMenu engineering• Best menu items are those Best menu items are those

with highest contribution with highest contribution margin per unit & highest margin per unit & highest sales.sales.

• It is recommended to analyze It is recommended to analyze by:by:• Individual menu items.Individual menu items.• Categories of menu offering.Categories of menu offering.• Meal periods or business Meal periods or business

categories.categories.

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PRICING GUIDELINESPRICING GUIDELINES• Use odd increments for cents.Use odd increments for cents.• Do not write price increases over old prices.Do not write price increases over old prices.• Resist increases that raise the dollar Resist increases that raise the dollar

amount of an item.amount of an item.• Give items that have been drastically Give items that have been drastically

increased in price a less noticeable menu increased in price a less noticeable menu spot.spot.

• Try to reduce large portions before raising Try to reduce large portions before raising prices.prices.

• Never increase price of whole menu.Never increase price of whole menu.• Put “market price” on items that fluctuate.Put “market price” on items that fluctuate.• Do not list menu items according to cost.Do not list menu items according to cost.

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DESIGN AND LAYOUTDESIGN AND LAYOUT

• Menu size may range from Menu size may range from one to several pages.one to several pages.

• Come in a variety of shapes.Come in a variety of shapes.• Generally 9 x 12” or 11 x 17”.Generally 9 x 12” or 11 x 17”.• Printing and artwork should Printing and artwork should

harmonize with theme of the harmonize with theme of the restaurant.restaurant.

• The names of the dishes The names of the dishes should be easy to read & should be easy to read & understand.understand.

• It should includes a strong It should includes a strong focal point.focal point.

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FOCAL POINTSFOCAL POINTS

Focal point of a single- page menu.

Focal point of a 2 or 4 page menu

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The EndThe End

Copyright © 2008 John Wiley & Sons, Inc.