CHAPTER 4: THE MENU: FOUNDATION FOR CONTROL

Assalamualaikum and hi again! today, we are going to discuss a topic which is menu: the foundation of control. today's topic is going to be long so grab a seat and hold on because there a lots to discuss.

first, we need to understand what is a menu. so basically, menu is the food available or to be served in a restaurant or at a meal. through menu, we can decide whether we make profit or not. that is why, controlling the menu is important to avoid wastage and loss.

The menu as a control and marketing tool

Menu is the primary sales tool for any restaurant operation, the menu must:

- Satisfy guest expectations

- Achieve quality goal

- Cost effective

- Must be accurate

1. Must satisfy guest expectations

2. Must attain marketing objectives

3. Must help to achieve quality objection

4. Must be cost-effective

5. Must be accurate

Menu planning

• Basic rules of menu planning

- know your guest
- know your operation

• Menu design

- First impressive is important the rest is the operation.

• Menu balance

- Business balance

- Aesthetic balance

- Nutritional balance

Rationalization and cross-utilization

Menu planing strategic:

- Rationalization: simplification for the sake of operation efficiency 

- Plan menu carefully can be a streamlining of the purchasing, receiving, storing, issuing, production, receiving, storing, issuing, production and serving control points.

- High quality convenience foods make it easier to offer new items

Contribution margin: basis of profitability

Profit pricing:

factors profits requirements and non-food expenses into menu item selling prices

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

Using mark-up pricing to calculate menu selling prices

• 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

If food cost is to be 40%

Multiplier = 1/desired food cost%

= 1/.40

=2.5

Menu engineering and improving the menu

Basic menu engineering process:

• Stars - items that are popular profitable
• Plow-horse - item that are not profitable but popular
• puzzles - items that are profitable but no popular
• Digs - items that are neither profitable nor popular.

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

*Formula*

Average Contribution Margin = Total Contribution Margin / Total Number of Item Sold

one thing for sure, controlling the menu is important as i said in the beginning. one must understand how menu can affect loss, profit and a tool for marketing in the industry. i hope you can use this knowledge if you want to open up a restaurant one day. thank you!