Title: Menu Analysis
1Menu Analysis Engineering
2References
- Mill, Robert Christie (1998) Restaurant
Management Customers, operations, and employees
/ Menu Scoring Menu Engineering, pp 114-116.
Upper Saddle River, N.J. Prentice Hall. - Drysdale, John A. Jennifer Adams Aldrich
(2002). Profitable menu planning / Chapter 5
Menu Analysis, pp. 101-115. 3rd ed. Upper Saddle
River, N.J. Prentice Hall, TX911.3.M45 D79
2002Â - CD-ROMÂ TX911.3.M45 D79 2002Â
3Objectives
- By the completion of this presentation you should
be able to - Analyze a menu for profitability
- Apply menu engineering to menu analysis
- Apply menu scoring methods to menu analysis.
4Important Terms
- Menu engineering
- Plowhorses
- Puzzles
- Stars
- Dogs
- Menu scoring
- Placement
- Pricing
5Introduction
- This presentation explains how to evaluate a menu
- When measuring a menu to see if it is successful
2 criteria must be met to declare it a winner - Must be profitable in terms of individual item
profitability - Most profitable item must be selling the best.
6Stars, Plowhorses, Puzzles, Dogs
- 1st Method, called menu engineering, developed by
Donald Smith Ph.D., Westin Hotels Distinguished
Professor at Washington State University - This method rates the menu by measuring each
entrée as to its profitability (gross profit) and
its sales. It then combines these measurements
and places each menu item into one of four
classifications.
Puzzle
Plow Horse
Dog
Star
7Contributing Margin
- Determine the contributing margin (CM) of each
item - CM same as items Gross Profit
- Use total food cost (include garnish,
accompaniments served with entrée such as salad,
potatoes, rolls, butter etc.).
Selling Price Food Cost Contributing Margin
8Contribution MarginDollars vs. Food Cost
Percentage
9Menu Engineering
39.93 2,004.32 7.03
(7) Food Cost Percentage (6) / (5)
(8) Total Contribution to Margin (5)
(6) (9) Average Contribution Margin/
Customer (8) / (2) (10) Contribution Margin
per menu Item (5) (6)
(2)
10Menu Engineering
- (11) Average Popularity
- 80 of the average item sales per entrée
- 100 / 4 X 80 20
- (12) Popularity of each menu item
- Number of portions sold divided by total number
of meals sold - Chicken 65 / 285 22.8
- Beef 75 / 285 26.3
- Turkey 90 / 285 31.6
- Filet 55 / 285 19.3
-
11Menu Engineering Analysis
100
Popularity
20
0 Contribution Margin 7.03
8
12The Four Key Menu Categories
- Plowhorses are items that are relatively popular
but have a high contribution margin. Items in
this category can have their menu prices
increased or the portion size cut in a attempt to
increase CM. If market is price resistant - Stars have both high popularity and high CM
- Puzzles have relatively low popularity and high
margins. - Dogs are both low in popularity and CM
13Menu Engineering Analysis
100
Popularity
20
0 Contribution Margin 7.03
8
14Menu Scoring
- Method developed by Michael Hurst, Professor of
Restaurant Management at Florida International
University, a restaurant owner and past president
of the NRA. - Devised to ascertain whether menu changes
(additions, deletions, and price adjustments)
actually improved the profitability of the menu
by comparisons of a menu score. - One advantage quick to complete because it does
not track every menu item.
15Menu Scoring
- Combines profitability and popularity of menu
items to arrive a a consensus score - The higher the score, the better the menu
- An existing menu can be scored, then compared
with a proposed menu, after sales for the new
menu have been estimated.
16Menu Scoring
- Meal Check Average 5 / 2
- Gross Profit 5 6
- Gross Profit 8 / 5
- Gross Profit Average Meal 7 x 9
- Total Meals Served
- Popularity of Meals Analyzed 2 / 11
- Menu Score 10 x 12
11.15 2,004.32 63 7.02 450 63 4.42
17The Higher the Score the More Profitable the Menu
- This method takes into account not only of
items sold, but also their contributing profit
18Placement
- Two Schools of thought
- Menu Sequence
- Menu should follow progression of meal
- Focal Points
- Use focal points on the menu to push certain menu
items
19Focal Points
Single Sheet Menu
Twofold Menu
20Focal Points
Focal Point
Threefold Menu
21Specials
- Larger Bolder type than the rest of menu
- Longer description
- Concept of Closure
- peoples eyes are drawn to what ever is enclosed
by a box - Color, illustration, and/or pictures, bullets
can be used to draw attention to signature items.
22Branding
- Fast food
- Coke / Pepsi
- TGIF
- Jack Daniels
23Menu Pricing
- Odd-Cents pricing
- Majority of prices end in either a 5 or a 9
- Price rounding.
- Within certain price bands, price increases have
little negative impact on customers - Placement
24Price Placement
25Price Placement
26Conclusion
- Menu analysis is important
- If demographic studies, internal capacities, cost
cards, and markups have been executed correctly,
the score should be a good one - Analysis should be done using either the Smith or
the Hurst methods to ascertain the profitability
of the menu - If the analysis shows a poor menu, make
improvements - Good menu first step has been taken toward
running a profitable operation. - Its just that simple
27Where to Get More Information
- Mill, Robert Christie (1998) Restaurant
Management Customers, operations, and employees
/ Menu Scoring Menu Engineering, pp 114-116.
Upper Saddle River, N.J. Prentice Hall. - Drysdale, John A. Jennifer Adams Aldrich
(2002). Profitable menu planning / Chapter 5
Menu Analysis, pp. 101-115. 3rd ed. Upper Saddle
River, N.J. Prentice Hall, TX911.3.M45 D79
2002Â - CD-ROMÂ TX911.3.M45 D79 2002Â
- Most Menu FB Management Books