Fritz Gitschner, CMC

cbp1956@aol.com

Developing a Profitable Food

Operation in Clubs

Before We Start...

• This will be a discussion-based session

• Assumptions– strong knowledge of controls– understanding of the menu engineering concept

• Is there an expert in the house?

• You know your operation

Menu Planning &Analysis

Developing a Profitable Menu Mix

Open Menu Planning• Create a creative environment

• Do your research

• Utilize your resources

• Solicit input

• Develop incentives

• Cross-train for understanding

• Support your team

Creating the Profitable Mix

• Use Open Menu Planning

• Utilize Under-Utilized Products

• Create Visual Value Perception

• Merchandise Menu Items

• Analyze the Menu

Menu Analysis

• Developed over 20 years ago

• Good concept…based on averages

• Should be used as a tool…not a rule

• Can’t do it in your head

• Can use it for multiple outlets

CM $ vs. FC%

• Bank dollars

• Judge by percentages

Computers• Just another tool

• Can’t make decisions - only information

Which Would You Rather Sell?Ribeye Chix. Florentine Lobster

Sold 15 25 8

Sales $284.25 $267.50 $280.00

Food Cost $99.48 $57.75 $112.00

Labor @ $8 (2hr) $16 (3 hr) $24 (1/2 hr) $4

Total Cost $115.48 $81.75 $116.00

ICM $11.25 $7.23 $20.50

TCM $168.77 $185.75 $164.00

TCM= (Tot. Sales – Tot. Costs) / # Sold

Menu Engineering - Some Issues

• 70% rule

• Categorical dispersion

• Interpreting item rankings

• Taking action - making the change

The 70% Rule

Each competing item should achieve 70% or better of its equal share to be considered to have a high popularity

index.

The Menu Engineering Grid

70%

ACM $

XX

Puzzle

The Puzzle

• High Average Contribution Margin

• Low Menu Mix Percentage

What are some examples?

The Menu Engineering Grid

70%

ACM $

XX

X

X

Puzzle Star

The Star

• High Average Contribution Margin

• High Menu Mix Percentage

What are some examples?

The Menu Engineering Grid

70%

ACM $

X XX

X

X

X

Puzzle Star

Plowhorse

The Plowhorse

• Low Average Contribution Margin

• High Menu Mix Percentage

What are some examples?

The Menu Engineering Grid

70%

ACM $

X X

X

X

X

X

X

X

X

Puzzle Star

Dog Plowhorse

The Dog

• Low Average Contribution Margin

• Low Menu Mix Percentage

What are some examples?

Interpreting Item Rankings

• Don’t ditch the “dogs”

• Use the whole worksheet– Potential Food Cost– Menu Contribution Margin

• Start with the numbers

• Find the reasons behind the performance

Menu Engineering Worksheet

Categorical Dispersion... Not all dogs are bad

70%

ACM $

X X

X X

X

X

X

X

X

Puzzle Star

Dog Plowhorse

Menu Engineering Worksheet

Menu Planning &Analysis

ProductUtilization

Developing a Profitable Menu Mix

Utilize Under-Utilized Products

• Move from primal to sub-primal cuts

• Use “lesser-known” seafood products

• Know your vendors and product sources

• Use regional and seasonal products

• Be creative

Menu Planning &Analysis

ProductUtilization

Managing theCycle

Developing a Profitable Menu Mix

Manage the Cycle: • Set Standards

• Monitor Product Quality

• Ensure Consistency

• Control REAL Costs

• Build your team

• Play an active role

Menu Planning &Analysis

ProductUtilization

Managing theCycle

MenuMerchandizing

Developing a Profitable Menu Mix

Profitability Flow Chart

Cost $$

Price $$

Flow

Presentation

Merchandise Menu Items

• Make “Culinary Music”

Roast Beefwith horseradish mashed potatoesand sautéed fresh garden vegetables

Culinary Music

Culinary Music

Slow Roasted Sirloin of Beef

with horseradish whipped potatoes and bouquetiere of fresh garden vegetables

Herb Infused Roasted Sirloin of Beefand horseradish potatoes

with organically grown macerated vegetables

Culinary Music

Culinary Music

Hand Selected Sirloin of Beefdry aged and seasoned with chef's selection of fine herbs, slow roasted, served with Yukon gold whipped potatoes flavored with fresh Oregon grated horseradish and confit of vegetables

Merchandise Menu Items

• Make “Culinary Music”

• Create “High Real-Estate Values”

• Use change as an asset

• Remember your markets

• Explore new territories

• Take calculated risks

The Profitable Menu MixMenu Planning &Analysis

ProductUtilization

Visual Value

Perception

Managing theCycle

MenuMerchandizing

Create Visual Value Perception

• Plate size, shape, color, style

• Functional garnishes

• Portion sizes

• Excitement

• Culinary blueprints

Gravlax with Mustard Dill Sauce

Curly Endive

Dill Sprig Puff Pastry Strip

Apple SmokedBacon Strip

MustardSauce

25 yr. OldBasalmic Vinegar

Beluga Caviar

Gravlax

Tortilla Ring

Gravlax with Mustard Sauce

Gravlax with Dill Sauce

Dill

Puff Pastry Strip

Bacon

Sauce

Vinegar

Caviar

Gravlax

Tortilla Ring

Endive

Let’s Review

• Why plate presentation?

• What is plate presentation

• How do I develop and implement:– plate presentations

– plate demonstrations

• What is the impact of presentations in the operation?

What is Plate Presentation?

• Balance

• Contrast

• Visual excitement

Baked Fillet of Seabasson piquante tomato sauce with aged balsamic vinegar and potato-olive tart

Developing and Implementing Plate Presentations

• Use Plate Diagrams

• Ask Questions

• Use Functional Garnish

• Train, Train, Train

• Use the Right Equipment

• Follow-up

The Basics

Creativity

Qu

alit

y

Training Consistency

•Staffing/Training

•Quality Control–Culinary Blueprints–Organizational Meetings–Communications

Quality, Creativity, and Consistency

Purchasing/Receiving

• Bid process/contacts

• Receiving/security

• Quality Standards

In the Storeroom

•Continue the Quality Quest

•Label and Date all Product

•Enforce Product Rotation Policy

Food Production Includes…

• The Butcher Shop

• Hot Food Preparation

• A la Carte

• Banquet Production

• Pastry and Baking

• Chef’s Tables

The Butcher Shop

•Quality

•2-Day Product Turnover

•Full Product Utilization

Hot Food Production

• Organization

• Training

• Technology

• Product Utilization

Garde Manger

• Recipes

• Quality

• In-House Production

A la Carte

• Food Safety

• Consistency

• Creativity

• Teamwork

Banquet Production

• Planning

• Culinary Blueprints

• Consistency

• Creativity

• Quality

Culinary Blueprints

1

2

3

45

6

Banquet Production• Planning

• Culinary Blueprints

• Consistency

• Creativity

• Quality

Developing and Implementing Plate Presentations

• Use Plate Diagrams

• Ask Questions

• Use Functional Garnish

• Train Train Train

• Use the Right Equipment

• Follow up

The Idea

Final Product

Implementing Plate Presentations in Your Operation

• Consistency

• Morale

• Planning

• History

• Win-Win Situation

Consistency• Purchasing

• Receiving

• Storage

• Pre-prep

• Production

• Service

Morale

• Employee

• Member/Guest

Planning

• Catering Department

• Manpower

• Equipment Needs

• China, Glass, Silver

• Smallwares

• Station/Line Setup

History• Events

• Food Items/Plate Diagrams

• Library

• Customer Inquiries and Referrals

Win - Win Situation

Summary

Plate presentation contributes to:

• consistency

• profitability

• visual stimulation

• high employee morale /development

• customer satisfaction