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1. menu engineering is actually quite interesting as this gives us an opportunity to evaluate our menu and our and our operations in so many different ways. For example, we can use an analysis of sales within a period to see what menu items sold teh most and which ones did not. Some menu items sell a lot but are not as profitable, and perhaps they can be signature menu items that bring in people. Once they do this, customer tend to order other stuff and this is where servers should apply suggestive selling. There is a lot more we can learn from this and that we can discuss, because once all of this is done, we see what menu items to keep and which ones to replace, say after a quarter, bi-annually, etc.
2. A few years ago when I worked on-site at a resort, I used to use a program called Avero for menu engineering (Averoinc.com, n.d.). We could run reports that would tell us which items sold the most, the contribution margins, and menu profits. We made many decisions about a menu based on the statistics this program would provide us. With being able to focus on the average check, what items were more profitable, and which items the servers tend to sell more of. If you want a profitable menu, you need to learn to balance high-priced and low-priced foods to help you reach your food cost goals (BCCampus, n.d.). First, it is important to calculate menu item costs, which we have done in one of our CLC assignments. Then a calculation of food cost percentages should be done. Contribution costs will determine, based on the selling price of the food, how much the item contributes to the profit. We also did this in one of our CLC assignments. This is calculated by subtracting the cost of the food from the price of the plate. Profitability is important and is based on the average profit of other items on the menu. You want to have items on the menu that are similar in profit, not something that is much lower in profit. The popularity of a dish is based on the total number of dishes, for example, on the entree menu divided into 100%. If one item is more popular than other items, it might be time to remove the less popular items from the menu. The arrangement of items on a menu can be very important. Some items that are maybe chef's choice should be highlighted on the menu to bring attention to them. It is best if these are the most profitable items, even if they aren't the chef's actual choice. How can a chef even nail down their specific choice? Although this is not a menu, I am responsible for the sort order of items on a website when a guest books a hotel room. I first start out with the most profitable on the top and hope those are the ones that are bought more frequently. I normally move them around monthly to see if the sort order does effect the sales, and it certainly does.
3. Menu engineering is a powerful analytical tool that helps restaurant owners and managers identify the most profitable items on their menu, make informed decisions about menu modifications, and maximize profitability. The process involves analyzing sales volume, contribution margins, and menu profits to determine which menu items are performing well and which are not. This information can then be used to modify the menu to drive sales, enhance customer experience, and maximize profitability. The first step in menu engineering is to analyze sales volume. This involves tracking the number of times each item on the menu is sold during a given period, such as a week or a month. The goal is to identify the menu items that are most popular among customers, as these items are likely to be the most profitable. For example, if a restaurant sells 100 burgers per week and 50 salads per week, it's clear that the burgers are more popular and may be more profitable. The next step is to analyze contribution margins. This involves calculating the cost of each menu item and subtracting it from the selling price to determine the profit margin. For example, if a burger costs $5 and is sold for $10, the contribution margin is $5. This information helps restaurant owners and managers understand which menu items are the most profitable and which may need to perform better. Menu items with high contribution margins are likely more profitable, while items with low contribution margins may need reevaluation. After analyzing sales volume and contribution margins, the next step is to map out the menu's profitability. This involves plotting each menu item on a grid that shows its sales volume and contribution margin. The grid is divided into four quadrants, with high sales volume and high contribution margins in the upper left quadrant, low sales volume and high contribution margins in the upper right quadrant, high sales volume and low contribution margins in the lower left quadrant, and low sales volume and low contribution margins in the lower right quadrant. The goal of menu engineering is to focus on the menu items in the upper left quadrant, which are both popular and profitable. These items are called "stars" and should be prominently displayed on the menu to attract customers and encourage sales. Menu items in the upper right quadrant, which are not as popular but have high contribution margins, are called "plow horses" and should also be featured on the menu but may need to be promoted or paired with other items to increase sales. Items in the lower left quadrant, popular but with low contribution margins, are called "puzzles" and may need to be reevaluated or repositioned on the menu to increase profitability. Items in the lower right quadrant, which are neither popular nor profitable, are called "dogs" and should be removed from the menu.
4. Depending on the market or customer-base for your restaurant, you will want to choose the right menu pricing model for your specific audience.
A few restaurant menu pricing models are:
Promotion-based with feature items heavily favored/featured
Upscale with minimalist menus, no currency signs, and whole numbers
Limited menu for farm-to-table or fluctuating supply operations
Prix Fixe (price fixed) menus
A menu organized by cuisine
In addition to the strategies outlined above, restaurants also use a number of other pricing strategies as well. You must choose a pricing strategy that is most relevant to the target audience and pricing structure of your business. In the case of fast casual restaurants, a more promotional approach may be chosen, as opposed to the case of fine dining restaurants choosing a Prix Fixe menu.
5. The more menu items that are on a menu can be confusing to customers because they will not be able to decide what they would like to eat. According to menu engineer Gregg Rapp, When we include over seven items, a guest will be overwhelmed and confused, and when they get confused, theyll typically default to an item theyve had before (Krook, 2022). The total number of entree items that they say should be on a menu is seven. Your customers will know no difference. Limiting their choices by offering a smaller menu or creating a prix fixe menu frees them up to try your star dishes, helping you see more profit on every check.
6. Usually, menus that feature a "chef's choice" meal assume that the chef knows the best available items and that allowing the chef's discretion will produce the finest possible meal. This is sometimes true ... but former sous chef (and current food influencer) Nick Morin Ganas of Patria in Toronto, ON, warns that leaving the decision up to the chef may not lead to the desired result. The menu has a reason, and we worked hard to perfect the dishes. This will not be a magical off-menu item we will create for you; it will be something from a menu we select. It will likely be a menu item that needs to be moved. Suppose I have ten delicious fish fillets portioned for a particular fish that are not selling well. In that case, you can probably be sure you will receive the specific fish (thank you for enabling me to move product that would have gone bad if left unpaid), Morin Ganas tells The Manual.
7. Successful restaurant managers must understand all aspects of the business in today's competitive industry. While specialized knowledge in one field, such as wine or cuisine, can be useful, restaurant management requires a big-picture perspective. "The Making of a Manager" by David Flaherty explores why big picture knowledge is more valuable than specialized learning. Flaherty suggests that managers can benefit from specialized learning. Customers and staff can benefit from the expertise of a manager who worked in a wine bar. This type of knowledge should not be a manager's sole focus. If a manager knows only one area well, he or she may make decisions based on personal interests rather than the business' overall health. Managers with big-picture knowledge can make informed decisions that consider the restaurant's overall health rather than just one area's success. Understanding how the different components of a restaurant work together can create a sustainable business that meets customers' needs and keeps costs low. Successful managers understand how to balance the demands of different areas of the business. Restaurant managers with big picture knowledge might understand the importance of offering high-quality food and beverages, but also how to keep prices reasonable. The manager could balance high-quality ingredients with competitive pricing. With this approach, the restaurant would be appealing to a wide range of customers while keeping costs low. Managers with big-picture knowledge also understand the importance of effective communication and teamwork. To ensure excellent customer service in a busy restaurant, every staff member must work together. A manager who understands teamwork can foster a positive working environment and encourage effective communication. A manager like this would ensure that all employees understand their roles and responsibilities and feel comfortable asking questions. Furthermore, a manager with big-picture knowledge could respond quickly and effectively to changing circumstances. An experienced manager with a big-picture view would be able to adjust the menu or negotiate with the supplier to keep costs down if a supplier suddenly raised the price of a key ingredient. Managers with specialized knowledge may struggle to respond to unexpected changes outside their area. Lastly, a manager with big-picture knowledge understands customer satisfaction. Customers are the lifeblood of any restaurant, and a manager who understands their needs can create loyal customers. Managers of this type ensure that the restaurant offers high-quality food and beverages, excellent service, and a pleasant environment. In addition, they would understand the importance of marketing and advertising. Having specialized knowledge in one area of restaurant management can be useful, but it is not sufficient for success in today's competitive industry. With a broad understanding of restaurant management, a manager can make informed decisions that take into account the restaurant's overall health, balances the demands of different business areas, fosters staff cooperation, responds quickly and effectively to changing circumstances, and creates loyal customers. Successful restaurant managers understand how all the components work together.
8. The accuracy of menu information is crucial to providing a duty of care to restaurant customers for several reasons. First, many customers have specific dietary requirements or allergies and rely on menu information to make informed food choices. It is possible for customers to inadvertently consume something that they are allergic to if the information on the menu is inaccurate, which could result in a severe or even life-threatening reaction. If the customer is injured, the restaurant may be liable for damages. A restaurant's duty of care to its customers includes providing accurate menu information. A duty of care is a legal concept that requires businesses to take reasonable steps to ensure the safety and well-being of their clients. This includes providing accurate information about the food and drink served in a restaurant. If a restaurant fails to deliver accurate information, a customer is injured. As a result, the restaurant may be found to have breached its duty of care and may be subject to legal action. From a customer service perspective, providing accurate information on menus is essential. It is common for restaurant customers to expect to be able to rely on the information provided by the restaurant and may feel disappointed or frustrated if the information provided on the menu needs to be corrected. As a result, the restaurant may receive negative reviews and damage its reputation. In summary, the accuracy of menu information is critical to providing a duty of care to restaurant customers. This is because it helps to ensure their safety and well-being, is a legal requirement, and is a crucial aspect of effective customer service.
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