Menu management week 4 31 oct 2012

Week 4
MENU MANAGEMENT
Dimitris S. Dimitriou

Hotel Management Program
www.citycollege.ac.cy

Nutrition for Food Service Operation
• Nutrition and Food Issues are Huge
• Two-thirds of Americans are overweight.
• 48 million fall ill to pathogens in food annually.
• 12.6 million don't have enough food to stay
healthy.


Nutrition: The Science of Food
• Nutrition: the study of nutrients in food,
how the body uses nutrients, and the
relationship between diet, health and
disease. Major food manufacturers employ
nutritionists and food scientists.
Nutritionists may also work in journalism,
education and research. Many nutritionists
work in the field of food science and
technology. Hotel Management Program

The human body requires seven major
types of nutrients

 A nutrient is a source of nourishment, an
ingredient in a food, e.g. protein,
carbohydrate, fat, vitamin, mineral, fiber and
water. Macronutrients are nutrients we need
in relatively large quantities. Micronutrients
are nutrients we need in relatively small
quantities.


Marine Ecosystems in Danger
From Climate Change
Climate change is projected to shrink the
body weight of marine fishes by 14 to 24%
globally by 2050, according to a recent study
from The University of British Columbia. The
results of the study provide a new
understanding of climate change’s impact on
marine ecosystems.

• Indeed, changes in temperature and oxygen
content directly affect the ecophysiology (the
adaptation of an organism’s functions to
environmental conditions) of marine water-
breathing organisms and lead to a reduction in
both individual and assemblage-level body size.


Nutrition and Food Service Managers
Services include the following, and they specialize
in requests:

Evaluation of meal services

Periodic reviews of food production, meal
preparation and sanitation

Training of the staff in all aspects of food service
management, food safety and sanitation, resident
acceptance and the concept of hospitality

Menu development and analysis Hotel Management Program

•Policy and procedure manuals

•Detailed in services to your food service and dietary staff
including precepting of Dietary Manager course as needed

•Fiscal education and support including: development of
comprehensive fiscal controls and analysis of food and labor
budgets

•Quality Assurance: monitor adherence to facility policies,
menu systems, and purchasing and ordering systems


Contemporary Dietary Concerns
• Images If you've ever combed the supermarket for affordable,
quality, nutritious foods, you know how difficult it can be. With rising
food costs, the need for convenience and the frequent inability to
read and understand ingredients lists, you may end up with a basket
full of unhealthy foods. However, even with these challenges, six in
10 Americans consider nutrition "very important," according to a
recent poll by the American Dietetic Association. Though the
number of people concerned about nutrition has increased in the
past few decades, life-threatening, diet-related problems like cancer,
heart disease, diabetes, digestive conditions and obesity plague the
population.
http://www.livestrong.com/article/342878-contemporary-nutrition-
issues-insights/#ixzz2AjyGlEEG


-
Economy
The ADA reports that over half of those polled believe "organic"
foods to be healthier. This, however, may not be enough for
Americans to purchase them regularly, as "sticker shock" from
common organic products has some wondering if they are worth it,
reports the New York Times.

Rising fuel costs, higher demand, supply shortages and production
costs are all contemporary factors contributing to the price increases
for both organically produced and standard foods.

http://www.livestrong.com/article/342878-contemporary-nutrition-issues-
insights/#ixzz2Ajz2ArU5


Fast Food Culture
In 30 years, the number of hours worked by Americans
has increased by 20 percent, states the Journal of the
American College of Nutrition. With dwindling time,
families find the "fast food" meal more convenient and,
in some cases, less expensive than traditional home
cooking.
insights/#ixzz2AjzcfLMF


More than 90 percent of Americans know that
information, but less than half have heard about
probiotics and allergen-free foods.
insights/#ixzz2Ak09qY3w

Solutions
With seven out of 10 Americans dying from chronic
disease these days, solutions are being addressed by
organizations like the Centers for Disease Control and
Prevention and the ADA.
insights/#ixzz2Ak4oSGVe


•
Future Trends
Recent research shows a trend toward group wellness
coaching. Wellness coaching can not only improve health
for individuals but may "leverage change" in the overall
population
insights/#ixzz2Ak5EJJby


Contemporary Diet and Concerns
• Portion Sizes
Some of the most startling evidence of the changes in
contemporary diet lie in portion sizes. The typical portion
size for a hamburger increased up to 223 percent from
the 3.9 oz. burger in 1954. Portion sizes for an order of
french fries increased nearly 200 percent from 1955
figures. These two examples point to a possible change
in nutritional intake. With increased size of hamburgers
and french fries comes a greater saturated fat intake.
Over-consumption of saturated fats can increase your
risk of developing atherosclerosis, or hardening of the
arteries.
http://www.livestrong.com/article/454528-contemporary-diet-and-
nutrition/#ixzz2Ak6iqGwM

• Added Sugars
• Americans' passion for sweets is reflected in the amount
of added sugars the average person consumes. The
"Dietary Guidelines for Americans 2010" estimates that
added sugars make up 16 percent of the current
American diet, far higher than the recommended 10
percent. High consumption of added sugars can lead to
weight gain and poor nutrition. Sugar consumption, like
fat or cholesterol, can become addictive. This
consequence has fueled the food industry as it tries to
satisfy the American sweet tooth.
• http://www.livestrong.com/article/454528-contemporary-diet-and-
nutrition/#ixzz2Ak7DEZ00

Fast Food Consumption
• Another trend affecting diet and nutrition is fast food
consumption. A 2003 study by Columbia University and
the Obesity Research Center at St Luke's-Roosevelt
Hospital in New York found that restaurant food
consumption by children ages 6 to 11 increased almost
300 percent between 1977 and 1996. It's hard to deny
the convenience that fast food offers.
•
nutrition/#ixzz2Ak7hDq1Q


Sodium Intake
• The increased intake of prepared foods along with
processed foods has brought about another change in
the contemporary diet that might affect future cases of
high blood pressure, or hypertension. The Centers for
Disease Control and Prevention warns that the American
diet contains far too much salt. Americans consume
more than 3,400 mg of sodium each day, well more than
the recommended 2,300 mg intake. With the increase in
sodium comes a heightened risk for heart disease and
high blood pressure. These trends might lead to changes
in life expectancy for future generations.
•
nutrition/#ixzz2Ak8ApUV4 Hotel Management Program

The Menu
Menu pricing need to fulfill two needs, for the caterer the
need to make adequate profits and for the customer the
need to satisfy getting value for money.
Menu Pricing Styles
Cost plus pricing
Competition pricing
Rate of Return pricing
Elasticity Pricing
Backward Pricing
Prime Cost
Departmental profit margins
Differential profit margins

Menu Schedule

It can be designed from Monday to Sunday on
spreadsheet having the Lunch and the Dinner
menus.


Types of Menus
• What are the different types of menu in a
restaurant?
• the types of menus at a restaurant can be: a
static menu, a cycle menu, a market menu, a
hybrid menu, an à la carte menu, semi à la carte
menu and a table d'hote menu.
Read more:
http://wiki.answers.com/Q/What_are_the_differe
nt_types_of_menu_in_a_restaurant#ixzz2AoPZ
5z5X

What is menu planning?
• Menu planning is the selection of a menu for an event.
Such as picking out the dinner for your wedding or even
a meal at a Birthday Party. Menu planning is when you
are preparing a calendar of meals and you have to sit
down and decide what meat and veggies you want to
serve on each certain day. You also can plan reunions
and wedding receptions like this. Sometimes it can be
challenging.
• It never ends.
• Menu planning is ongoing process, dynamic process
which meets the guest expectatios – present and
potential

What are the factors to consider in menu
planning?
• Who is the menu for? Child, elderly, active person and
what particular nutrients they would need. What type of
menu is it, breakfast, lunch dinner, snack.. daily menu
should include all four. Balanced using the food pyramid,
adequate servings of all food groups. Variety is also key.
Read more:

• http://wiki.answers.com/Q/What_are_the_factors_to_consider_in_m
enu_planning#ixzz2AoUSb3Qe

The Psychology of Menu Design
• The menu is the most important internal marketing and
sales tool a restaurant has to market its food and
beverage to customers. It is the only piece of printed
advertising that you are virtually 100 percent sure will be
read by the guest. Once placed in the guest’s hand, it
can directly influence not only what they will order, but
ultimately how much they will spend. Menu design
directly influences sales revenue. Management is
constantly forecasting business volume to estimate how
much to buy, keep in inventory, and prepare. A properly
designed menu makes these kinds of decisions easier
and more accurate. Hotel Management Program

The Psychology of Menu Design
• A well-designed menu can educate and entertain the
customer as well as be a communication, cost control,
and marketing tool for your restaurant. The menu is
designed to help the guest decide what to order. When
you strategically place menu items on the menu, you will
sell more of them than if you placed them randomly.


Evaluate Menus
• The final process of nutricient analysis is to evaluate the
menus and modify according to meet the nutrient
standards.
1. Review the menus for variety
2. Evaluate how well the current menus meet the
appropriate nutrient standards.
3. Review the portion of serving sizes


Menu Management software
• Restaurant Food Cost Professional Software is a complete
restaurant inventory software, menu and recipe cost software and
also a great restaurant accounting software rolled into one great
restaurant software program. This software has both a periodic
inventory and also a perpetual inventory based on how you set it up.
The restaurant accounting software has many useful features such
as an invoice tracking program that keeps track of your invoices and
expenses from all sources like food vendors, hood cleaning,
equipment rentals and much more. The program with its restaurant
menu software also has a menu and recipe costing feature that lets
you set up your menu and recipe cost and keeps your food cost
numbers correct and current all the times. With any change in price
on any item in your restaurant inventory that is an ingredient in a
menu item or recipe the cost of all items in the menu are
automatically updated. Hotel Management Program

Standard Product Costs and Pricing
Strategies

What is the definition of a standard recipe?

• A standard recipe is as its said..to standardize each
dish..this is beneficial to consistency in quality and cost
control.
• What are the advantages to staff and customer of a
standard recipe?
. Consistancy and familularzation.


Menu Engineering
Menu engineering provides the manager with
information about a menu item’s profitability, as well as
popularity, so that proactive planning, recipe design and
customer pricing decisions can be made.

Menu engineering is not a substitute for proper
purchasing, food rotation, standard recipes or any of the
other basic kitchen controls that can negatively impact
your costs.

Rather it is a method of evaluating every item on your
menu relative to its present contribution to bottom line
dollars, thereby allowing managers to recognize the
items they want to sell! www.citycollege.ac.cy

Menu prices

If they are too high;

Sales Suffer

If they are too low;

Profits Suffer


Menu Prices

1. Be directly related to costs
2. Help product profitability
3. Serve as a cost control tool
4. Refresh realistic markups (the difference
between a menu item’s cost and selling price)


Maximum allowable food cost
The maximum allowable food cost figure determines the
food cost percentage an operation needs in order to
achieve its profit objectives. It is calculated from the
actual operating budget of the business.

To calculate the maximum allowable food cost
percentage, select a representative accounting period
and determine the amounts for:
• payroll related expenses (salaries, wages, taxes, and
fringe benefit)
• overhead expenses (advertising, utilities,
maintenance, other supplies excluding food costs).
• Also include a target figure for profits before tax.

Actual Food Cost

The actual food cost percentage appears on
the monthly income statement. This is the cost
of the food consumed by your customers, and
does not include employee meals or spoilage.

Although the actual food cost indicates what
the food cost is currently running, it has little
value unless the operator knows what the
target percentage should be.

Potential food cost
Potential food cost is a theoretical or ideal percentage
which indicates what the food cost should be in a
perfectly run restaurant, given the sales mix. It reflects
the fact that the most popular menu items will have the
greatest influence on the overall food cost percentage.
To calculate the food cost percentage of each dish:

• Multiply the food cost per item with the number of
portions sold
• Multiply the sales price by the number of portions sold
• Add both columns and then multiply the total cost by
100 and divide it by the total of the sales column.
This will result in the potential food cost. Hotel Management Program

Standard food cost
Management needs to adjust the potential food cost to
include waste and spoilage that occurs during normal
preparation, as well as an allowance for complimentary
or discounted meals to employees and guests. An
acceptable variance will range from half to three
percentage points of food sales.
The exact percentage is determined from management
studies. The standard food cost percentage is
calculated by adding this variance percentage to the
potential food cost. Hotel Management Program
The difference between actual food cost and standard
food cost reflects inefficiencies that should have been
controlled by management.

Standard recipes for beverages

• Standard recipes must be established for each drink.
It is straight forward for the basic types of liquor served,
since a recipe is a standard portion. It is important for the
staff to be familiarized.

Requisitions
Some establishments use the daily requisitions, costed and
totaled as a basis of calculating a daily beverage cost


Measuring devices

• Two measuring devices are the shot glasses and
jiggers.
• The shot glass is generally used for the basic highball
drink that the establishment serves.
• The jiggers is usually of stainless steel and measures
smaller quantities of ingredients


Establishing Drink Selling prices

• Consider gross profit in pricing drinks
• Drink selling prices are established to yield on overhaul
desired beverage cost percent, in the same way as food-
menu prices.


Interbar Transfer

• In establishments with several bars, it is sometimes
necessary to transfer beverages from one bar to
another.

Spillage Allowance
Some establishments permit spillage allowance. This
allowance aknowledges that it is not practical to expect
that the liquor from a bottle can be accounted for down
to the last drop.


Common Menu Pricing Methods

•
Your restaurant concept, that is, the type of food, service and ambience
has a lot to do with the different challenges a restaurant owner might face
when pricing menu items.

Ideal Food Cost Pricing Method
This method calls for an owner to consider the actual cost of a menu item,
then consider his or her ideal food cost percentage. Ideal food cost
percentage varies, but typically lies somewhere between 25 and 30 percent.
The two are divided and voila, you have a menu item price. See the example
below:


Things to Consider Before Pricing

• Direct costs
• Indirect costs.
• Preparation and labor.
• Overhead expenses.
• Volatile food costs.
• Competition
• Service type.
• Pricing boundaries.


Thank you


Menu management week 4 31 oct 2012

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