Transcript Marketing and the Menu

Marketing
and the
Menu
Chapter 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 Mix
Marketing 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
T
Strengths
Weaknesses
Opportunities
Threats
Where does
this place
excel
Places to
improve
Ways to
increase
revenues or
decrease
costs
Factors
outside the
operation
that could
decrease
revenues or
increase
costs
(boring menu, dirty
facilities, poor service,
poor reputation)
(delivery, take out,
kid’s menus, volume
discounts from
supplier)
(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



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
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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 Planning
1.
2.
3.
4.
5.
List all possible items
Eliminate items that are difficult to
purchase, prepare or serve
Fine-tune remaining items to fit
operation
Make sure all items can be successfully
prepared at an appropriate price
Identify winning selections and create
your menu
Menu Engineering
A
Menu
Item
B
# Sold
Menu
Mix
C
Menu
Mix %
B/N
D
Item
Selling
Price
E
Food
Cost Per
Item
F
Contribution
Margin
Overhead
& Profit
G
Total
Menu
Revenue
H
Total
Food
Cost
D-E
I
J
Contribution
Contribution
Overhead
& Profit
Category
Margin
Margin
K
Menu
Mix
L
Classification
Category
TOTAL
G-H or
FxB
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
277
6.25
1.86
1731.25
515.22
80
5.50
1.63
440.00
130.40
440
4.50
1.35
1980.00
594.00
Meatballs
Pasta
Provencal
Honey
glazed
Chicken
Stir Fry
Totals
N
1600
(J) – M_____________/ N______________ = Average Contribution Rate,
if F is above the average J is High if F is below the average J is Low
M
DOG – low contribution margin, low menu mix (low sales, 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