Menu Development Flashcards
?: allows a manager to examine a menu item’s profitability and popularity so proactive decisions can be made
Menu engineering
Menu planning principles:
Color, food shapes, textures, flavors
?: menu does not change daily or seasonally
Static menu
?: has specials for the day, offers flexibility for small busy restaurants
Du jour menu
?: may vary en entree price
Table d’hote menu
?: prices each food item separately
A la carte menu
?: used once eg for special event
Single use menu
?: for each day of a cycle, menu is different, cycle repeats on a regular bases weekly or monthly
Cycle menu
Benefits of cycle menu:
save time/food cost, offers variety, ability to buy in bulk, staff become familiar so more efficient production
Contribution margin =
Profit
Menu mix =
Popularity
Plow horse:
High popularity, low profit
Star:
high popularity, high profit
Puzzle:
low popularity, high profit
Dog:
low popularity, low profit
Ways to improve popularity for puzzle items:
- reduce selling price
- feature as special
- give priority on menu
- offer small portion size
___ items: cost of money to make and don’t sell enough units to offset extra food cost
Dog
Ways to improve plow horse items:
- improve appearance
- decrease portion size
- decrease food cost
Popularity index=
unit sales/ total sales
Profit contribution=
profit ( selling price-food cost) / total profits
Ways to reduce food cost:
- standardize recipe
- ingredient and portion control
3 types of forecasting
1) Qualitative techniques
2) time series and projections
3) casual methods
?: based on expert opinons and consider special events.
Qualitative techniques
?: may or may not rely on historical data. include delphi methods, market research, panel consensus
Qualitative techniques
?: use exponential smoothing and moving averages
time series and projection methods
?: look at patterns and changes in patterns using only historical data
time series/projection methods
?: each point of the average if the average of n consecutive points prior
Moving average
?: includes regression models, econometric models, intention-to-buy survey, input-output models.
Casual methods
? methods are more statistically intensive than moving averages
Regression/Linear regression models within casual methods.
Effective production plan:
- reduce wasted time, labor cost
- reduce need for safety stock so reduce inventory cost
- optimize equipment usage and increase work capacity
?: includes receiving, purchasing, inventory control, storage. develops specifications, evaluate bids, chooses suppliers
Procurement
Informal procurement process:
1- Develop specifications in writing
2- identify sources able to provide products
3- contact sources
4- evaluate bidder’s response
5- determine responsive and responsible bidder at lowest price
?: scores bidders based on established scoring criteria
Formal procurement
Formal procurement :
scores bidders based on established scoring criteria.
1) competitive sealed bidding
2) competitive negotiation
?: uses invitation to bid
competitive sealed bidding
?: uses request for proposal RFP
Competitive negotiation
?: trade industry obtains products below retail value, sells to retail establishments and marks up price to retail value to make profit
Wholesale
?: purchase and sell goods and take ownership of goods
Wholesalers
?: independent sales representative who contract with certain manufacturers and prime source producers arranging transactions between parties
Brokers
?: not title to the goods sold
Brokers
?: sells manufactures products to wholesale and retail customers
Manufacturer’s representative
?: foodservice operations create collective buying power to purchase more products at a lower price
Group purchasing
?: used when product is subject to spoilage
cost-percentage pricing
?: request items from purchasing manager
Requisition form
?: lists items to be purchased from supplies and completed by buyer
purchase order
?: provided by supplier to buyer in order to request payment for items received
Invoice
Receiving process:
1- compare purchase order to invoice
2- inspect item against invoice
3- accept/reject items
4- complete receiving record, sign invoice
5- place products in storage
?: give receiving clerk invoice/purchase order without quantity, wt, price
Blind checking receiving method
ABC inventory classification system
A: 10-20% of inventory items with 60-80% of purchasing cost
C: 50-60% inventory items with 5-10% purchasing cost
B: in middle
?: running balance of inventory on hand
Perpetual inventory (TIME CONSUMING AND EXPENSIVE)
?: done once a month with physical counts recorded on spreadsheet
physical inveotry
?: how many times in a month inventory turned into revenue
Inventory turnover
?: will reorder in x days before reaching safety/par stock rather than waiting to reach par stock
Fixed order quantity systems
?: brings stock number up to par level each time order is place regardless of how much on hand
Par stock ordering
?: deplete stock to safety method before order is placed
Minimum-maximum stock method
?: purchase items needed for immediate production
Just-in-time purchasing
?: kitchens that produce items for immediate service. cook-to-serve
conventional
?: labor heavy and need equipment for food holding. workload unevenly distributed
conventional
?: ready prepared foodservice systems have kitchens that produce and chill menu items and then heat for service
Ready prepared
?: food prepared in large, central kitchen, delivered in bulk to satellite locations for final production and service. School systems, airlines
Commissary
?: prepared foods require minimal assembly or cooking prior to service being purchased
assembly/serve
?: convenience food/ minimal cooking concept
assembly/serve
?: food is prepared and portioned, assembled at central locations
Centralized delivery-service system
?: main kitchen with satellite locations. bulk locations prepared and transported to locations
Decentralized delivery-service system
Service based factors:
- facility type/layout
- personnel skill
- economic factors
- food safety concerns
- meal service timing
- energy usage
- service style
Customer based factors
number of customers serves, how quickly, and what environment served
?: customer carries food from display to dining area
self-service
?: customers follow each other in line and served by employees behind counter
Traditional cafeteria style
?: separate counter areas provide different menus
hollow square/free flow/scramble cafeteria style
?: outside company contracted to keep items stocked
Machine vending
?: many options and hold up under long presentation time
Buffet
?: talk to someone in car
drive thru
?: trays delivered to floor pantry/patient requires cooperation between subsystems
Tray service
Wait service:
- American, french, russian
