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Application of menu engineering in restaurants

Anonim

Restaurants are undoubtedly an important representative within tourism, a growth factor in many regions, since they contribute to economic growth, the generation of jobs and the representation of a place, which makes them a social, cultural and economic phenomenon. of importance for any place that seeks to be promoted as a tourist destination.

engineering-menu-restaurant

In the area of ​​food and beverages, undoubtedly the main objective, as in any for-profit company, is to achieve high income and effective cost management. This translates into having a good management of the establishment. All this is closely related to who are the main actors who achieve the operation and operation of the establishment and the techniques that allow these achievements.

For the application of the Menu Engineering technique we took the Vuelta Abajo restaurant belonging to the Habaguanex company and chose a month of January 2015 discharge, which corresponds to the high season of tourism in Cuba. We consider it appropriate that the universe of dishes that is related in the menu-menu was divided into 4 groups according to their destination, that is Starters, Side dishes. Main Dishes and Desserts and apply the Menu Engineering package separately in each of the groups and in this way know by groups the positive and negative elements in their marketing

Menu Engineering is a marketing technique that allows the adjustment of prices, as well as the permanence of the dishes on the menu and is based on the analysis of the behavior of demand before the prices of the basket of dishes offered on the menu, the profit of each plate and the tastes or preferences of the clients By means of this method the great differences in prices that may exist and their relation to the preference of each plate are eliminated.

In summary, the Menu Engineering technique makes it possible to analyze the correspondence between the offer of the dishes of a group or family (starters, meats, fish and seafood, etc.) on the menu and their demand by customers in a certain period. The dishes are classified according to the popularity index obtained and according to the resulting gross profit index, according to both indexes and averages calculated for the period analyzed.

Steps to follow for the application of Menu Engineering

To apply Menu Engineering we must register a data set that allows us to classify the dishes in the future. The data to be recorded in the time established for the analysis are:

  • Name of the dish Times that each dish is offered in the menu in the defined time Cost of ingredients (material) of each dish Price of each dish and gross profit or commercial margin obtained Amount of times the dish is sold in the time analyzed

The results achieved through the Menu Engineering technique allow an analysis to design the tactical measures to be taken into account for the changes to be made in the prices and in the portfolio of dishes to be offered on the menu.

Figure 4. Diagram of the Menu Engineering technique

The steps to follow are the following :

  • Relate the dishes according to the family to which it belongs, indicating the number of presentations of each dish on the menu during the period analyzed, the cost of the ingredients, the sale price and the gross profit, per dish and the number of dishes sold in said period.

O í = number of presentations (times offered on the menu) dish i in period T

. CM i = Material cost (cost of ingredients) according to the cost sheet of plate i in period T.

T? = ∑Pi ?? i

3.- Calculate the sale indexes of each plate, that is, the coefficient that shows that part of the total quantity of plates sold represents the number of plates i sold in said period. It can be expressed in decimal form according to the relationship by 100, between both values ​​or in percentage form if we multiply it

IV i = Index of the sale of plate i in period T, being ??? =

P?

? P

4.-Calculate the total number of presentations of the dishes during the period.

TO = Total presentations in period T, with TO = ∑ O i

5.-Calculate the presentation indexes of each dish, that is, the coefficient that shows what part of the total number of presentations of all the dishes on the menu represents the number of presentations of dish i in the period analyzed. that the sale index of each dish can be expressed in decimal or percentage form

IO i = index of presentations of plate i in period T, being

O i

IO i =

TO

6-Calculate the average popularity index of each dish within the same family of dishes, where the popularity index is the coefficient that shows the relationship between the sales index and the presentation index of dish i. This indicator expresses to what extent the dish is accepted by customers when it is offered by customers when it is offered on the menu, during the period analyzed.

I saw

I Pi = popularity index of plate i in period T, where Pi =

IO i

7.-Calculate the average popularity index and classify the dishes according to the comparison of the popularity index per dish with the average popularity index, within the same family of dishes.

Average popularity index = IP i = √π I Pi in period T

This average popularity index corresponds to the geometric mean of all the Popularity Indexes, therefore, each popularity index of each dish i can be compared with this average index, some being equal or greater and others less.

Yep? ≥ IP, popularity is high

Yep? ≤ IP, popularity is low

8-Calculate the average gross profit and classify the dishes according to the comparison of the contribution margin or gross profit per dish with the average gross profit index, within the same family of dishes.

TM

Contribution margin or average gross profit MC =

TP

S i ??? i≥ M̅̅̅̅? ̅ the profit is high

If ??? <M̅̅̅̅? ̅, the benefit is low

Then, according to the popularity index and the profit index, the dishes are classified into "Star", "Cow", "Unknown" and "Eliminate", (or other names can be used), as indicated below:

Table 1. Classification of dishes according to popularity and benefit indexes

Classification According popularity index According to profit index
Star high high
Cow high Low
Unknown Low high
Remove Low Low

The indications for each classification are as follows:

The “Estrella” dishes have a popularity index and contribution margin above the average indexes. They are very profitable and popular dishes, highly preferred by customers. Its quality must be maintained, both in its preparation and in its presentation and promotion, occupying an attractive place on the menu or menu. Its elasticity should be analyzed by testing whether its demand continues by slightly increasing the price by approximately 5 to 10%.

The “Vaca” dishes are above the popularity average but their contribution margin is low compared to the average. However, if these dishes are sold in sufficient quantities, with caution, the effect on demand by slightly increasing the price. Control of costs should be kept trying to reduce them and not developing their contribution to profits is not negligible. It is convenient to examine their elasticity by testing greater efforts in advertising and promotion for these products.

The dishes “Incognita” have a high contribution margin but a low popularity index, so when they present little demand, their contribution to profit is not significant. These dishes must be improved in terms of presentation and promotion and try any possible reduction in their prices. In some cases it may be suggested to change the name of the dish avoiding comparisons with other dishes, for example, shrimp enchilado, lobster enchilada. You can also highlight the dish on the menu or menu with other colors to increase customer service. You can also place the plate in a more visible place within your group and lower its sale price. If your popularity index is very low and requires a lot of work and does not contribute to the image of the offer in general, it is convenient to eliminate the product.

"Eliminate" dishes are the worst dishes, since they have little acceptance and contribute little to profit. They should be replaced by similar dishes, of better quality and presentation, with new names and more advantageous prices.

The dishes are grouped by family: starters, main dishes, side dishes and desserts through the menu-menu. The data registered in the month of January 2015 month chosen for the application of the Menu Engineering technique in each of the groupings of dishes mentioned above, are shown below:

Table 1. Data recorded to apply the Menu Engineering Method in the Starters group

Offer times- Cost according Price of Margin
tadas in the Tab of sale of contribution Quantity
menu Plate i Plate i of the plate i sold
DISHES O i CM i PV i MC i P i
Chicken sticks 30 1.04 3.50 2.46 60
Shrimp cocktail 30 1.28 4.50 3.22 fifty
Salmon Tartar 24 1.9 6.00 4.10 Four. Five
Chef's salad 30 1.52 5.00 3.48 66
Cheese and Serrano Table

30

3.12

10.00

6.88

10

Lobster Carpaccio 22 2.29 7.00 4.71 fifty
Beef carpaccio 30 1.89 6.00 4.11 55
Sea tempura 30 1.86 6.00 4.14 40
Fish eperlan 30 1.06 4.00 2.94 60

256

436

Source: Own elaboration according to data registered in January 2015

Table 2.Data recorded to apply the Menu Engineering Method in the Main Dishes group

Times- Cost according Price of Margin
offered in the Tab of sale of contribution Quantity
menu Plate i Plate i of the plate i sold
DISHES O i CM i PV i MC i P i
Pork Rolls in Fruit Sauce 30 2.59 8.50 5.91 52
Sautéed shrimp with garlic and piquillos 30 3.13 10.00 6.87 fifty
Villanueva Great Grid 30 7.16 25.00 17.84 5
Steamed Mussels Garnished with Candied Tomatoes 30 2.07 7.15 5.08 two
Griot of Pork to the Creole 30 1.50 6.50 5.00 35
Rosemary Chicken Supreme 30 1.75 8.00 6.25 43
Cut of Beef Fillet in Malt Sauce 30 4.27 16.00 11.73 37
Colonial Trapiche Fish Fillet 30 2.76 10.00 7.24 61
Roast Chicken with Peanut Layer 30 1.72 7.00 5.28 53
Asopao Back Down 30 3.21 13.50 10.29 38
Pork Scallops with Red Wine 30 2.03 7.00 4.97 42
Grille Fish Fillet 30 7.00 9.00 2.00 30
Roasted Pork Rashers 30 2.32 12.00 9.68 74
Lobster and Shrimp Skewers 28 2.90 12.00 9.10 80
Sautéed Shrimp with Garlic and Pepper 30 2.79 12.00 9.21 65
Grille Fish Fillet 30 2.15 12.00 9.85 70
Old clothes 30 2.86 12.00 9.14 61
TOTAL 508 798

Source: Own elaboration according to registered data January / 2015

Table 3. Data recorded to apply the Menu Engineering Method in the Garnish group.

Times of <ofer- Costs Price Margin
tadas in the Tab of sale of contribution Quantity
menu Plate i Plate i of the plate i sold
DISHES O i CM i PV i MC i P i
White rice 30 0.20 1.50 1.30 30
Moorish rice

30

0.28 2.00 1.72 90
Pilaf rice 30 0.37 2.00 1.63 100
Vegetable caponata 30 0.60 3.00 2.40 80
Sauteed vegetables 30 0.50 3.00 2.50 75
Viands with mojo 30 0.28 2.50 2.22 fifty
Fried viands 30 0.28 2.50 2.22 40
Mashed potatoes 30 0.20 2.50 2.30 70
TOTAL 240 535

Source: Own elaboration according to registered data January / 2015

Table 4. Data recorded to apply the Menu Engineering Method in the Desserts group.

Offer times- Costs according

File

Price of Margin
tadas in the Tab of sale of contribution Quantity
menu Plate i Plate i of the plate i sold
DISHES O i CM i PV i MC i P i
Sweet potato and coconut cream 30 0.55 2.50 1.95 80

Iced cake

30

0.77

3.00

2.23

100

Tiramizu 30 0.82 3.50 2.68 90
Milk rice mousse 30 0.24 2.00 1.76 69
Caramel flan 30 0.14 2.00 1.86 fifty
Jam with cheese 30 0.28 2.00 1.72 48

TOTAL

180

437

Source: Own elaboration according to registered data January / 2015

Menu Engineering Results

The tables corresponding to the calculation of indicators and the popularity and benefit indexes, for each group of dishes: Starters, Main Dishes, Side dishes and Desserts, are found in Annex 1. The calculated indicators are the total cost per dish and cost total of all dishes, total sale per plate and total sale of all dishes, gross profit per plate and gross profit of all dishes, percentage sales ratio per plate, presentation index per plate and popularity index per dish. The average popularity index and the average profit index are calculated.

These last indicators establish the comparisons of the popularity indexes per plate with the average popularity index and of the profit indexes per plate with the average benefit index and according to the results, the plate is located in one of the four categories: Star, Cow, Unknown and Dog.

The tables and graphs corresponding to these comparisons and classifications are of our own elaboration according to the tables in Annex 1 and are shown below for each group, and the analysis of said results is subsequently carried out.

Starters Group

Table 5. Classification of Dishes in the Starters group

Index

According to index

DISHES MC i According

popularity

benefit

Classifications

Chicken sticks 1.17 2.46 HIGH LOW COW
Cocktail

0.98

.98o.989,988

3.22

3.22

HIGH

LOW

COW

prawns
Salmon Tartar 1.10 4.10 HIGH HIGH STAR
Chef's salad 1.29 3.48 HIGH LOW COW
Cheese and Serrano Table 0.20 6.88 LOW HIGH UNKNOWN
Lobster Carpaccio 1.33 4.71 HIGH HIGH STAR
Beef carpaccio 1.08 4.11 HIGH HIGH STAR
Sea tempura 0.78 4.14 LOW HIGH UNKNOWN
Fish eperlan 1.17 2.94 HIGH LOW COW
TOTAL 0.91 3.66

Graphic. Plates location according to Popularity and Benefits indexes

The Star dishes: Lobster Carpaccio, Beef Carpaccio and Salmon Tartar, have a popularity index and contribution margin above the average indices, making them very popular and very profitable. These dishes must maintain their quality with respect to their preparation and presentation and not make changes in their promotion. In the menu they should be located in an attractive place and easy for the customer to see. It is possible to test whether the price of Beef Carpaccio and Salmon Tartar can be increased by 5% and that of Lobster Carpaccio by 10%, according to the position they occupy in the graph.

The Vaca dishes: Chicken Canes, Shrimp Cocktail, Chef's Salad and Fish Eperlán, although they are above the average popularity, their contribution margin is low. However, the quantities sold of these dishes are the highest in this group, so their contribution is not negligible given the level of profit they generate. It is recommended to try a slight increase in the price of these dishes, around 5% and observe the effect they cause on demand. The costs of the ingredients, the handling and elaboration must also be observed, trying to achieve a decrease but without affecting the quality.

The Incognita dishes: Cheese and Serrano Table and the Tempura del Mar, having a popularity index under the contribution is not significant. Of the Table of cheese and serrano only 10 dishes were sold and 40 of the Tempura del Mar. This last dish has a profit index very close to the average so it is not recommended to lower its price to increase its demand and the most acceptable is its elimination replacing it with a new plate. In the case of the Cheese and Serrano Table it would be convenient to test a 10% decrease in its price and observe its effect on demand.

This group does not present dishes with a low popularity index and a low profit index or that belong to the classification

Main Dishes Group

Table 6. Classification of Dishes in the Main Dishes Group

According to index According to index
DISHES MC i popularity benefit Classification
Pork Rolls in Fruit Sauce 1.10 5.91 HIGH LOW COW
Sautéed shrimp with garlic and piquillos 1.06 6.87 HIGH LOW COW
Villanueva Great Grid 0.11 17.84 LOW HIGH UNKNOWN
Steamed Mussels Garnished with Candied Tomatoes 0.04 5.08 LOW LOW REMOVE
Griot of Pork to the Creole 0.74 5.00 LOW LOW REMOVE
Rosemary Chicken Supreme 0.91 6.25 HIGH LOW COW
Cut of Beef Fillet in Malt Sauce 0.79 11.73 HIGH HIGH STAR
Colonial Trapiche Fish Fillet 1.29 7.24 HIGH LOW COW
Roast Chicken with Peanut Layer 1.12 5.28 HIGH LOW COW
Asopao Back Down 0.81 10.29 HIGH HIGH STAR
Escalo Pork pins to Red Wine 0.89 4.97 HIGH LOW COW
Montecristo Lobster 0.64 2.00 LOW LOW REMOVE
Roasted Pork Rashers 1.57 9.68 HIGH HIGH STAR
Lobster and Shrimp Skewers

1.82

9.10

HIGH

HIGH

STAR

Sautéed Shrimp with Garlic and Pepper

1.38

9.21

HIGH

HIGH

STAR

Grille Fish Fillet

1.49

9.85

HIGH

HIGH

STAR

Old clothes 1.29 9.14 HIGH HIGH STAR
TOTAL 0.78 8.20

Classification of Group Dishes Main Dishes

The star dishes: Cut of Beef Fillet in Malt Sauce, Asopao Vuelta Abajo, Roasted Pork Slices, Lobster and Shrimp Skewers, Sauteed Shrimp.

With Garlic and Pepper, Grillé Fish Fillet and Ropa Vieja, they have high popularity and benefit rates. With the exception of the Cut of Beef Fillet in malt sauce and the Asopao Vuelta Abajo, the other dishes in this group have a high popularity index but the benefit index is very close to the average index, therefore, it is not recommended to increase the prices of these dishes. In these dishes, the production and service processes must be reviewed in order to analyze the possibilities of reducing costs. The Cut Beef Filet dishes in malt sauce and the Asopao Vuelta Abajo have a popularity index very close to the average index and a relatively high profit index, making it possible, in these dishes,decrease their prices by 5% and observe the effect on demand to see how sales increase.

The Vaca dishes: Pork Rolls in Fruit Sauce, Rosemary Chicken Supreme, Red Wine Pork Scallops, Sautéed Shrimp with Garlic and Piquillos, Roast Chicken with Peanut Layer, Fish Fillet with Colonial Trapiche. The latter has a high degree of popularity and its benefits index is very close to the average index, so with respect to this dish it is recommended to increase its price by 10% and observe its effect on demand. The Roast Chicken dishes with Peanut Layer, Pork Rolls in Fruit Sauce and Sautéed Shrimp with Garlic and Piquillos, have a high popularity index but have a lower profit index than the average index, so it is suggested to increase their prices in 5% and observe the effects on demand.

The Incognita Gran Grillada Villanueva dish presents a very high profit index but also a very low popularity index, that is, the indices are at extreme limits. The most advisable solution is to decrease its price by 10% and observe the effects on demand and if it does not increase, it should be eliminated or replaced on the menu.

The Dog dishes: Steamed Mussels garnished with candied tomatoes, Creole pork Griot and Montecristo Lobster, have low popularity and benefits indexes, belonging to the Eliminate group, which is why they should be transformed with lower-cost ingredients and with another name, or replace them with new products or remove them from the menu without substitution.

Garrison Group

Table 7. Classification of dishes in the Garnishes group

According

According

DISHES MC i

popularity

benefit

Classification

White rice 0.45 1.30 LOW LOW REMOVE
Moorish rice 1.35 1.72 HIGH LOW COW
Pilaf rice 1.50 1.63 HIGH LOW COW
Vegetable caponata

1.20

2.40

HIGH

HIGH

STAR

Sauteed vegetables 1.12 2.50 HIGH HIGH STAR
Viands with mojo 0.75 2.22 LOW HIGH UNKNOWN
Fried viands 0.60 2.22 LOW HIGH UNKNOWN
Mashed potatoes 1.05 2.30 HIGH HIGH STAR
TOTAL 0.93 2.05

The Star dishes: Puré de Viandas, Vegetables Sautéed and Caponata de Vegetales, have popularity ratings and owe benefits higher than the average rates, but the differences are not very significant, so it is suggested that they be kept in the same conditions.

The Vaca: Arroz Pilaf and Arroz Moro dishes are highly popular, notable with respect to the average index, but have a lower profit index than the average index, but very close to the latter, so it is suggested that these dishes increase their price. by 5% and observe the effects on demand.

The Incognita dishes: Fried meats and Meats with mojo, present low popularity indices and high profit indices but very close to the average index, so it is suggested to analyze the elaboration process of both and achieve cost reductions to decrease the price of said products by 5%. If this measure is not successful, these components should be considered as complements to other offers that could have high popularity ratings, maintaining at least 5% higher in their profit rates than the average rate.

Desserts Group

Table 8. Classification of Dishes in the Desserts group

According

According

DISHES

IPi

MC i

popularity

benefit

Classification

Sweet potato and coconut cream

1.10

1.95

HIGH

LOW

COW

Iced cake 1.37 2.23 HIGH HIGH STAR
Tiramizu 1.24 2.68 HIGH HIGH STAR
Milk rice mousse

0.95

1.76

LOW

LOW

REMOVE

Caramel flan 0.69 1.86 LOW LOW REMOVE
Jam with cheese 0.66 1.72 LOW LOW REMOVE
TOTAL 0.96 2.10

The Estrella dishes: Tiraminu and Torta Helada have high popularity and benefit indexes, although Torta Helada has a profit index very close to the average index, so for this product, given its high popularity index, its price could increase by 10% and of course, observe the effects on demand. The Tiraminu plate would remain unchanged, placing itself in visible places on the menu.

The Vaca Crema Sweet Potato and coconut dish has a popularity index lower than average and a profit index lower than average but very close to it, so it is recommended to increase its price by 5% and observe its effects on demand.

There are no dishes in this group in the Unknown category. In the Delete category we have the dishes Marmalade with cheese, Caramel flan and Mousse of rice pudding. The first two are far from the average popularity index but close to the average profit index. In both products, it is suggested to review the elaboration process and reduce the portion to be served. In the case of rice pudding mousse, its popularity index is remarkably close to the average index but a little far from the average benefit index, so it is suggested to review the composition and portion thereof to analyze the possibility of any change in said dish..

In general, we have for the universe of dishes the classification by Menu Engineering shows that 30% of the dishes are Unknown and only 20% are stars, which implies a revision of the menu menu of the restaurant and its adequacy given these results All this is shown in the graph below.

CONCLUSIONS

  1. The menu, in the period analyzed, has presented dishes with different states or positions in relation to supply-demand. There are dishes with low and high sales volumes, others with very high or low benefits, others showing lows in both indices, where prices and customer acceptance play the fundamental role. There is no doubt that the menu plays its role as representative and informant of the restaurant offers, its design and updating is essential. However, the quality and professionalism of the service, if the evolution of the supply-demand relationship is not continuously being controlled, situations arise in the menu items, which can be maintained over time if corrective measures are not taken. Quantitative techniques are essential in the analysis of supply-demand.Although only this technique has been applied for said analysis, the results are eloquent to define the strategy to be taken into account in the improvement and updating and to take the corresponding measures, which in some cases has been easily identified.

RECOMMENDATIONS

  1. The restaurant must redesign the menu-menu based on the results of the analysis carried out. The process of control and supervision of the supply-demand relationship must be continued through periodic analyzes of its behavior. Carry out a study on the offers of the competition and analyze the possibilities of inclusion in the menu of unique and specialized offers. Continue to apply other techniques with the same objective and find with their applications a more timely design and structure of a menu-menu that allows better economic results.
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Application of menu engineering in restaurants