Post on 15-Jan-2016
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Marketing and the MenuChapter 7
Chapter 7 What is a market? Customers What is marketing? A way of
communicating a message to a market Is there a difference between marketing
and advertising? Advertising is one part of marketing – marketing is much bigger than just advertising
Contemporary Marketing MixMarketing Activity for Restaurants
Product-service mix – food and services offered to customer.
Presentation mix – elements that make the operation look unique(color, lighting, furniture, decoration, uniforms, etc…)
Communication mix – Ways an operation tries to communicate with desired customer.
SWOT Analysis – for understanding current situations and looking for new opportunities.
S W O TStrengths Weaknesses Opportunities Threats
Where does this place
excel
Places to improve
(boring menu, dirty facilities, poor service, poor reputation)
Ways to increase
revenues or decrease
costs(delivery, take out,
kid’s menus, volume discounts from
supplier)
Factors outside the operation that could decrease
revenues or increase
costs (competition, product
cost, road construction)
Market Research Methods Experimental – try a product for a
limited time or to a limited group. Observational – Observing how
customers react in a natural setting toward a product.
Survey – Gather information on a questionnaire – examples??
Sampling – Focus group, sampling trial
Marketing Communications Advertising: paying to promote
products, services or identity. Advertising options?
Sales Promotion: limited incentives to get customers. Examples?
Personal selling: Key to financial success – well trained staff
Public Relations: how an operation interacts with the community. Examples?
Direct Marketing: connecting with certain segment of the market. How?
Types of Menus A la carte
Offers food separately at separate prices Du jour
“of the day” changes daily Cyclical
Repeated – institutional food services Limited
Few selections – quick service restaurants Fixed
Same items every day California
All meals any time Prix fixe
Complete meal grouped together for a single price
Table d’hote Complete meal but choices of appetizers,
entrees, desserts, etc… Set single price
Five Steps to Menu Planning1. List all possible items2. Eliminate items that are difficult to
purchase, prepare or serve3. Fine-tune remaining items to fit
operation4. Make sure all items can be successfully
prepared at an appropriate price5. Identify winning selections and create
your menu
Menu EngineeringA
Menu Item
B# SoldMenu Mix
CMenu Mix %B/N
DItem
Selling Price
EFood Cost Per Item
FContributio
n
MarginOverhead & Profit
D-E
GTotal MenuRevenu
e
H Total Food Cost
IContributi
on
MarginOverhea
d & Profit
TOTALG-H or F x B
JContributi
on
MarginCategor
y
KMenu Mix
Category
LClassificati
on
Chinese Chicken Salad
210 6.85 2.05 1438.50
430.50
Mexican Pasta Salad
63 4.50 1.36 283.50 85.68
Mexican Taco Salad
390 6.00 1.77 2340.00
690.30
Twisted Chicken Salad
140 4.00 1.16 560.00 162.40
Sweet and Sour Meatballs
277 6.25 1.86 1731.25
515.22
Pasta Provencal 80 5.50 1.63 440.00 130.4
0
Honey glazed Chicken Stir Fry
440 4.50 1.35 1980.00
594.00
Totals N1600
M
(J) – M_____________/ N______________ = Average Contribution Rate, DOG – low contribution margin, low menu mix (low sales, low $$) if F is above the average J is High if F is below the average J is Low PUZZLE – high contribution margin, low menu mix (high sales, low $$)
PLOW HORSE – low contribution margin, high menu mix (low sales, high $$)STAR – high contribution margin, high menu mix (high sales, high $$)
Now you create a menu
More excellent examples
Last ones