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 $$)STAR – high contribution margin, high menu mix (high sales, high $$)

Menu Descriptions Entice us to buy the food Lead us to expect it will taste great

Chocolate Cake Belgian Black Forest Double Chocolate

Cake

Which menu is better? Red Beans & Rice Seafood Fillet Grilled Chicken Chicken Parmesan Chocolate Pudding Zucchini Cookies

Traditional Cajun red beans with rice

Succulent Italian Seafood Fillet

Tender Grilled Chicken Home-Style Chicken

Parmesan Satin Chocolate Pudding Grandma’s Zucchini

Cookies

Four Basic Themes Geographic Labels- Tex Mex Salad,

Kansas City Barbeque Nostalgic Labels-Grandma’s Chicken

Fricasse Sensory- Velvety Chocolate Mousse, Smooth,

silky Brand Labels- Jack Daniels Glazed Ribs,

Butterfinger Blizzard, Black Angus Beef Burger