MENU AS SALES DEVICE
Menu Characteristics
Focal Points & Layout
Methods of Emphasis
Diversity and Signature Dishes
Item Descriptions
Menu Analysis
Analyze Data
MENU AS MARKETING TOOL
Once the Customer is on-site, the menu
becomes your best marketing tool.
Second most important are well-trained
servers.
Everything begins with the clientele.
MENU DESIGN
Things to consider
Wording—how much do you want to rely on
servers
Paper—what impression are you trying to give
Menu Selection
the number of dishes
executonal style—don’t kill one station
diversity of key ingredients
MENU TYPES
Table d’hote, Prix Fixe
ADVANTAGES
Price changes are simple
Decision-making is expedited
Quick/easy movement through kitchen
DISADVANTAGES
No add-ons
More waste
Control issues
A la Carte—each dish is priced individually
ADVANTAGES
Easier to increase check amounts
DISADVANTAGES
More prep
More controls needed
Menu Types
Combination—set platings
Cycle Menus —item/plate featured on a regular basis
Institutional feeding--menus are written for a
four-week period and then repeated
Soups featured on the same day of the week
Daily specials--the same every day of the
week for a
MENU DESIGN
Much research has been done on how to best utilize
the physical menu
Focal points—where does the eye go first
Font Sizes—attract attention via type
Color
Font Type—what does a particular font suggest
about the item
Focal Point
Single & Double Paged Menus
Single Page Menu
Double Paged Menu
Emphasize Low-Volume, High Margin items that increase profitability.
POPULARITY INDEX
Popularity Index = $Item Sales
$Total Sales
1
= % x .7 = Index #
# Menu Items
EXAMPLE:
If menu contains 20 items, what is the popularity index for the menu?
1 / 20 = .05 x .7 = 3.5%
Burger sales $100/$1000, then the popularity index for burgers would be ….
1/10 = 10%
Therefore burgers, would be considered a “popular item” on the menu.
MENU ANALYSIS
POPULARITY INDEX & PROFITABILITY INDEX
•
.
ITEM
A
B
C
D
E
UNIT
SALES
$FOOD
COST
$COG
44
37
15
17
21
8.56
5.89
7.90
4.86
7.75
376.64
217.93
118.5
82.62
162.75
TOT. AVG.
POP. INDEX
958.44
1/5 X 70%
SALES TOTAL POP.
PRICE SALES INDEX
17.99
16.99
18.99
15.99
17.99
%CR
791.56
628.63
284.85
271.83
377.79
34%
27%
12%
12%
16%
52%
65%
58%
70%
57%
2354.66
100%
59%
14%
Using Menu Analysis/Popularity Index
Popular/Profitable
Leave it Alone
Popular/Unprofitable
Fix CM
+Price or -Cost
Unpopular/Profitable
Increase Sales
Feature /Promote
Unpopular/Unprofitable
Get Rid of It
MENU DESIGN
DO’S:
Use the FOCAL POINT to feature Unpopular/Profitable Items
Consider the length of time the menu will be in use
Diversity of Key Ingredients & Preparations
Signature Dishes
Differentiate the Establishment
Buffer against Price Fluctuations
Buffer against Business Downturns
Write good descriptions of each dish
Help sell add-ons
Help move the customer through all items
Menu Design
DON’T:
List in order of price point
Break categories page to page
Overload any single station
Over diversify
Waste becomes a bigger issue
Overwork kitchen with excessive items
Create false expectations—”truth in advertising”
Forecasting Sales
•
•
•
•
•
Understand Steps in Sales Forecasting
Qualitative vs. Quantitative Data
Calculate Menu Analysis
Sales Control Techniques
Theft Protection Techniques
Controls in Sales & Revenue
Data Used for Forecasting
-Quantitative Data
-Historic sales data
-POS equipment generated data
-Qualitative Data
-Weather
-Road Repair
-Events
SIX STEPS IN FORECASTING
1. Predict # of customers
-historical data (i.e. Y/A., last month, last
week)
2. Check surroundings & make adjustments
-weather
-events (i.e. conventions, holidays, etc.)
-reservations (i.e. catering, meals)
-competition /new competition
-market conditions
Six Steps in Forecasting
3. Establish total expected sale
4. Use MENU MIX to forecast items to be sold
5. Prepare plans
-Purchase quantities
-Productions schedule
-Labor schedule
-Specials schedule
6. Monitor/Reconcile/Correct
MENU ANALYSIS
•
.
YEAR:
CURRENT
M
ITEM
CHICKEN
SEAFOOD
STEAK
PASTA
SALAD
DESSERT
20
21
51
12
100
56
T
W
T
F
S
S
WEEK
TOTAL
23
21
50
18
67
71
56
18
51
12
121
71
55
19
41
19
119
75
100
32
108
20
261
212
95
37
121
28
26
201
12
7
35
35
91
160
361
155
457
144
785
846
ENTRÉE TOT.
YEAR AGO:
ITEM
CHICKEN
SEAFOOD
STEAK
PASTA
SALAD
DESSERT
ENTRÉE TOT.
M
T
W
T
F
S
S
WEEK
TOTAL
20
21
51
10
100
56
18
25
50
18
121
71
20
18
60
18
133
70
16
19
83
16
136
80
181
30
120
12
280
216
210
35
158
35
280
210
12
10
25
30
95
181
477
158
547
139
1145
884
MENU ANALYSIS
1. Using the figures, how many seafood entrees
would you expect to sell on Tuesday using figures
from both years?
2. How would you say the business is doing this year
vs. year ago? Are there any days that have
changed significantly and how?
3. How has menu selection changed this year vs. year
ago?
CONTROLS of SALES REVENUE
Bonding—Insurance against theft by a particular
person who is trusted with cash, property or security
Background Checks
Reference Checks—predisposed for positive reviews
Pre-employment screening tests
-positive personality traits (www.humanmetrics.com )
-integrity
-reliability
Controlling Sales Revenue
Manual Checks
-Use numbered checks—every check must be accounted for
-Dupes (duplicates) of checks can be used to reconcile food leaving
the kitchen and payments received by the cashier
POS (Point of Sale) Technology
-Act as a central system for printing orders directly in the kitchen,
printing customer checks; nothing leaves the kitchen without an
order
-Can be tied to inventory control system; help control COGS
-Provide minute-to-minute summation of sales revenue, menu
analysis and individual productivity
Controlling Sales Revenue
Limit the number of people handling cash
Establish strict systems for handling cash and monitor
them
Voids should be investigated; floor managers should be
asked to sign off on voids as they occur
Under reporting cash and stealing is common; cashiers
should be required to account for differences
Kickbacks cost money
Controlling Cash Revenue
GUEST PILFERAGE
Souvenirs
Dine and Dash; get checks to tables immediately after the meal is finished
CREDIT CARDS
Credit card companies charge for service
-charges vary by card
-charges are negotiable depending on volume
Promotional materials on credit cards accepted should be displayed
Credit Card take cash off the floor
Customers credit card numbers MUST be protected
MAXIMIZING SALES
1.
2.
3.
4.
5.
Understand your clientele
Price the menu correctly
Menu analysis to determine CR
Menu design
Sell to more people, or sell more to the
same people.
6. Pre-shift meetings
7. Employee empowerment
MAXIMIZING SALES
$SALES
-$EXPENSES
$PROFIT
Increase $SALES
decrease -$EXPENSES
Increase $PROFITS
STRATEGIES FOR MAXIMIZING SALES
1. UNDERSTAND THE TARGET AUDIENCE
-Design with them in mind
-Interior
-Menu
-Plates and Plating
-Product & Product Mix
-Burgers vs Fillet Mignon
-Goat Cheese Pizza vs Pepperoni
-Service
-Tuxedo service vs. T-shirts
-Full service vs. Self-serve
-Price
2. MENU PRICING
“If an item doesn’t have a positive contribution margin,
maximizing sales only hurts profit. “
FOUR PRICING STRATEGIES:
1. Selling Price First (follow the leader)—pricing to meet the competition.
Price (Dollar Menu)
Required $COG
CM to cover profit/labor/overhead
$.99
$.396
$.594
2. Individual Pricing (differentiated pricing)—a signature item, something unique in
the market, or a unique audience (i.e. captive audiences at airports, sports
stadiums)
-high perceived value
-lack of competition
3. Actual Cost Method –standard recipes are costed, and predetermined COGS% is applied
-standards MUST remain constant
-costs MUST remain the same
-adjustments may be needed over time
4. Contribution Margin Method —pre-determined $CM is
added to the cost of each dish
-least common method
-accurately forecast fixed costs and covers
-divide FC/Covers; add to costs
INDIVIDUAL MENU PRICING
•
SALMON
POTATO
BROCCOLI
ROLL-BUTTER
BEVERAGE
DESSERT
TOTAL
.
COG% @ 35%
LABOR @ 40%
PROFIT @ 10%
OPERATIONAL COSTS @ 15%
SALES PRICE
$COGS
2.18
0.12
0.14
0.12
0.12
0.34
3. MENU ANALYSIS
To Increase Profit:
Raise Prices—may lower covers/volume
Lower Costs—may lower standards
BOH—lower quality ingredients
Decrease portion size
FOH—reduce service standard
Increase productivity standard
Remember: The Customer always drives the business.
4. MENU DESIGN
Put emphasis on items with high CM
Signature items
Special purchases
Over stocks
5. BROADEN YOUR MARKET
Bring in new clientele
“Early-bird” specials
after hours events
Increase check averages—sell add-ons and sell-up
Service staff training
Menu selections
Beverage specials
“Supersize It”—extra ingredient costs are VERY
small part of overall costs
5. PRE-SHIFT MEETING
Topics of Discussion:
Events of previous night
Upcoming events—special parties, important reservations
Sales techniques—what’s been working for everyone
Staff contributions should be encouraged
Sample specials and/or menu items
Service staff are the employees in direct guest contact
What are they carrying away on plates after the meal?
What comments are they hearing over and over?
How do customers feel about the facility/design/layout?
6. EMPLOYEE EMPOWERMENT
TQM (Total Quality Management) philosophy of leadership
Employees are your most valuable asset
Participation = Satisfaction
Motivation = Performance
Give employees power to deal with front-line problems.
-comp a meal
-give a free drink or dessert
-can eliminate the spread of bad word-of-mouth
-management is still responsible for
investigating source of the problem