1. M ENU A NALYSIS W EEK 9 L EC.8 1 Menu Planning and Design (HM 431) Fall 2012

2. L EARNING O BJECTIVES Analyze a menu for profitability Apply menu Engineering to menu Analysis I MPORTANT T ERMS : o Menu Engineering o Star o Plow horses o Puzzles o Dogs 2 Menu Planning and Design (HM 431) Fall 2012

3. M ENU E NGINEERING M ETHOD This method rates the menu by measuring each entrée as to its profitability and its sales. Then combines these measurements and place each menu item into one of the four classifications: a. Star b. Plow horses c. Puzzles d. Dogs 3 Menu Planning and Design (HM 431) Fall 2012

4. M ENU E NGINEERING M ETHOD The method mainly measure the level of contribution margin related to level of sales. Thus the formula looks like this: CM = SP – FC 4 Menu Planning and Design (HM 431) Fall 2012

5. U SING M ENU E NGINEERING M ETHOD The main details which basically used are: A. Menu Items B. No. of Purchases C. Menu Mix % D. Mix Total Level E. Selling Price F. Food Cost G. Contribution Margin H. Revenues I. Total Food Cost J. Total Contribution Margin K. Contribution Margin % L. Contribution Margin Level M. Class Category N. Final Decision 5 Menu Planning and Design (HM 431) Fall 2012

6. U SING M ENU E NGINEERING M ETHOD 6 Menu Planning and Design (HM 431) Fall 2012

7. T HE F OUR K EY M ENU C ATEGORIES 7 Menu Planning and Design (HM 431) Fall 2012

8. U SING M ENU E NGINEERING M ETHOD Example Example.xlsx 8 Menu Planning and Design (HM 431) Fall 2012

9. 9 H OW TO U SE THE C ATEGORIES Leave it alone but with Regular check Can carry large portion in cost changes Can carry large portion in labor salaries increase

10. H OW TO U SE THE C ATEGORIES Increase their Price Carefully Change its Positioning Reduce Standard Portion Package it to other side dishes Better Value Alternative 10 Menu Planning and Design (HM 431) Fall 2012

11. H OW TO U SE THE C ATEGORIES Decrease its selling Price Use advertising and promotions Reposition it Use up selling technique Rename it Eliminate it but in certain cases 11 Menu Planning and Design (HM 431) Fall 2012

12. H OW TO U SE THE C ATEGORIES Use the Stock then Terminate it Raise its Price 12 Menu Planning and Design (HM 431) Fall 2012

13. Home Work Answer the Question No. 1, 2, 3 in P 108.109 13 Menu Planning and Design (HM 431) Fall 2012