MENU AS SALES DEVICE Menu Characteristics Focal Points & Layout Methods of Emphasis Diversity and Signature Dishes Item Descriptions Menu Analysis Analyze.

MENU AS SALES DEVICEMenu Characteristics

Focal Points & LayoutMethods of Emphasis

Diversity and Signature DishesItem Descriptions

Menu AnalysisAnalyze 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 Selectionthe number of dishesexecutonal style—don’t kill one stationdiversity of key ingredients

MENU TYPES

Table d’hote, Prix Fixe

ADVANTAGES DISADVANTAGESPrice changes are simple No add-onsDecision-making is expedited More wasteQuick/easy movement through kitchen Control issues

A la Carte—each dish is priced individually

ADVANTAGES DISADVANTAGESEasier to increase check amounts 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 typeColorFont Type—what does a particular font

suggest about the item

Focal PointSingle & 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 ANALYSISPOPULARITY INDEX & PROFITABILITY INDEX

• .

UNIT $FOOD SALES TOTAL POP.ITEM SALES COST $COG PRICE SALES INDEX %CR

A 44 8.56 376.64 17.99 791.56 34% 52%B 37 5.89 217.93 16.99 628.63 27% 65%C 15 7.90 118.5 18.99 284.85 12% 58%D 17 4.86 82.62 15.99 271.83 12% 70%E 21 7.75 162.75 17.99 377.79 16% 57%

TOT. AVG. 958.44 2354.66 100% 59%

POP. INDEX 1/5 X 70% 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 DishesDifferentiate the EstablishmentBuffer against Price FluctuationsBuffer against Business Downturns

Write good descriptions of each dishHelp sell add-onsHelp move the customer through all items

Menu DesignDON’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• .CURRENT YEAR: WEEK

ITEM M T W T F S S TOTAL

CHICKEN 20 23 56 55 100 95 12 361SEAFOOD 21 21 18 19 32 37 7 155STEAK 51 50 51 41 108 121 35 457PASTA 12 18 12 19 20 28 35 144SALAD 100 67 121 119 261 26 91 785DESSERT 56 71 71 75 212 201 160 846

ENTRÉE TOT.

YEAR AGO: WEEKITEM M T W T F S S TOTAL

CHICKEN 20 18 20 16 181 210 12 477SEAFOOD 21 25 18 19 30 35 10 158STEAK 51 50 60 83 120 158 25 547PASTA 10 18 18 16 12 35 30 139SALAD 100 121 133 136 280 280 95 1145DESSERT 56 71 70 80 216 210 181 884

ENTRÉE TOT.

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 RevenueGUEST 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. Understand your clientele2. Price the menu correctly3. Menu analysis to determine CR4. Menu design5. Sell to more people, or sell more to the

same people.6. Pre-shift meetings7. 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) $.99Required $COG $.396CM to cover profit/labor/overhead $.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 pre-determined 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

• .

$COGSSALMON 2.18POTATO 0.12BROCCOLI 0.14ROLL- BUTTER 0.12BEVERAGE 0.12DESSERT 0.34TOTAL

COG% @ 35%LABOR @ 40%PROFIT @ 10%OPERATIONAL COSTS @ 15%SALES PRICE

3. MENU ANALYSIS

To Increase Profit:

Raise Prices—may lower covers/volume Lower Costs—may lower standards

BOH—lower quality ingredients Decrease portion sizeFOH—reduce service standard Increase productivity standard

Remember: The Customer always drives the business.

4. MENU DESIGN

Put emphasis on items with high CM

Signature itemsSpecial purchasesOver stocks

5. BROADEN YOUR MARKET

Bring in new clientele“Early-bird” specialsafter hours events

Increase check averages—sell add-ons and sell-upService staff training Menu selectionsBeverage specials“Supersize It”—extra ingredient costs are VERY small

part of overall costs

5. PRE-SHIFT MEETING

Topics of Discussion:

Events of previous nightUpcoming events—special parties, important reservationsSales techniques—what’s been working for everyoneStaff contributions should be encouragedSample 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 assetParticipation = 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