...Menu Engineering Menu engineering is a menu analysis food pricing method that is used to determine which menu item requires re-pricing, featuring, eliminating, repositioning or re-costing (Schmidgall, 1997; Bell 2002). This approach incorporates both the profitability and the popularity of menu items with an emphasis on contribution margins (CM). The CM is established by subtracting the food costs from the menu item’s revenue. Menu engineering requires each menu’s item food cost, selling price, and quantity sold over a specific time period. The gross profit margin of each menu item is compared to an average gross profit margin of all menu items and then classified as high or low. Each menu item is also classified as high or low by its popularity. A menu mix percentage for the item is established by dividing the total count of the item in the total count of all menu items. The dividing point for establishing low or high popularity is calculated by multiplying 70% by 1/n, where n equals the number of competing menu items. The profitability and popularity classifications of each menu item results in four categories. A menu item with higher than average popularity and profitability is referred to as a Star, while an item with higher than average profitability and lower than average popularity is called a Puzzle. Menu items with lower than average profitability and higher than average popularity are called Plow Horses. Finally, menu items with lower than average profitability...
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...operational skills. Unit abstract This unit introduces learners to the practical aspects of food and beverage production and service. Because of the nature of their job, hospitality managers need to have basic levels of practical skills, enabling them to work effectively within different kitchen and restaurant environments. Managers may need to work in kitchen and restaurant environments to support operational staff in times of need or to establish themselves as credible team players. Learners will develop understanding of a range of food and beverage production and service systems. Learners will undertake an investigation of staffing implications for different systems and businesses to inform system comparisons. Learners will study menu planning and recipes suitable for different industry contexts. They will also investigate the importance of financial processes including, purchasing options, costing of raw materials and...
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...14 February, 2011 To Mr. Navid Ahsan Chowdhury Course Instructor Department of Tourism & Hospitality Management University of Dhaka. Subject: Submission of term paper Sir, We the student of BBA 1st batch, Department of Tourism & Hospitality Management, University of Dhaka. In reference to your order to prepare a term paper on Food, Beverage and Bar Management. We have prepared this report by using primary data from Atrium restaurant, Dhaka Regency and Escape from Shanghai and secondary data from our textbook, lecture sheets and internet. We, therefore, hope that you would consider our limitations, restrictions and grant this report and oblige thereby. Faithfully Yours, Members of De Faustine BBA-14th batch Department of Tourism & Hospitality Management University of Dhaka. ----------------------- Arefin Azam Rohan Executive Summary Hospitality industry is a huge industry, food and beverage is an important part of it. After completion of the assignment we have gathered much knowledge and especially first hand experiences. We have visited Dhaka Regency, Atrium Restaurant and Escape from the Shanghai for our field work. We discussed many branches of this industry such as the food and beverage systems of those outlets, the methods of production and services, staffing implications, different menus and factors to develop those, factors that affect the compilation of alcoholic beverage list. Here we also discussed what actions...
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...Ethnic Food Restaurant Business Plan 1.0 Executive Summary Our initial statement to Investors and Financial Lenders is a candid disclosure of the Zara Restaurant & Lounge business proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability of this business venture. Entrepreneurs have a tendency to paint the business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows: Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical experience with similar ventures, validation against National Restaurant industry cost averages, and analysis against local Atlanta market averages. We have taken a collective look at all figures to make solid business estimates. Our business concept was derived from detailed Market Analyses. Instead of building a business around a preconceived concept, we analysed the market findings and built a concept around our consumers. In other words, our business is built to service an...
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...Coopers Hawk Winery and Restaurant When I turned 21 the legal age to drink always had a taste for wine. The background that I originate from is European based and wine is in our family history. Coopers Hawk is the first winery/restaurant that caught my attention that has just been established around the area which I reside in and I just had to give it a shot. The decision was made that they are not many winery/restaurants that have a high range of wines to taste from in the area and this was the perfect chance to experience. The location of the restaurant is attached to a local mall where it can attract shoppers and the structure of it looks like a high end state of the art building and great atmosphere to it. They have a wide variety of foods and depending on what you get to eat it’s a normal level price or it can be a high end price. The cleanliness of the facility will factor a test. As I walk into the restaurant the hostess immediately assist’s you in a way that you’re the number one priority to them. Also, the Wine Tasting Room greets you as well. What a great way to start off the experience by a phenomenal greeting and welcoming. The design of the building itself was astonishing. The layer of brick inside the facility and the lighting was well prepared for the human attraction. The website stated that it took some time for the planning of the design to be well played out to establish something that no one has ever seen before. They want something that will put a...
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...Question: The proliferation of western fast-food chains such as Mcdonald’s, pizza Hutt,Sub-ways and Dominos in the Indian market has only been a recent phenomenon .What are the reasons that have contributed to the increased popularity of western fast-food chain in India? Ans: Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away. The concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread, sausages and wine. As in Roman cities during antiquity, many of these establishments catered to those who did not have means to cook their own food, particularly single households. Unlike richer town dwellers, many often could not afford housing with kitchen facilities and thus relied on fast food. Travellers, as well, such as pilgrims en route to a holy site, were among the customers. since than fast-food business is thriving. It is not that there was no fast food shops before the proliferation of western food chain. But it is the western food-chain such as Mcdonald’s, pizza Hutt,Sub-ways and Dominos get the desired success. The reasons that have contributed to the increased popularity are: Targeting Markets: •Initial focus on...
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...McDonalds and Starbucks: Different But Similar Michal Jonson-Marquis American Public University Abstract Over the years it would seem even through these harsh economic times Starbucks and McDonald’s have stayed the course and have not had to suffer through the recession. Both are still able to make huge profits, this is a testament to the way they market and sell their products locally and globally. Over the past few years both have been competing against one another to grab a foothold (McDonald’s fast foods and Starbucks coffees) internationally. McDonald’s has chains in over one hundred countries, while Starbucks has over fifty-five. While they seem different, there are similarities between them that may be surprising. McDonalds and Starbucks are the elite in the respective domain of service. While McDonalds is the giant among the fast food market, Starbucks is the giant in the fast coffee market. They both have similarities in the way they present their products to the customers, “think globally but act locally” (Montgomery Research, 2008). Both are geared toward speedy service and customer satisfaction through their products. McDonalds is through the fast food (hamburgers, cheese burgers, Big Macs, etc) and Starbucks is through their coffee products. McDonalds has been in business for over fifty years and boast that they have sold to over a billion people. In the sense of things McDonalds has a restaurant on every corner. They use the theory of...
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...Nicole Maggio Operations Management 320 Ch.2 exercise questions 9/5/12 5. A) Competitive priority means making sure the operations strategy can develop and focus on specific capabilities that give the company a competitive advantage. B) The four categories of competitive priorities include: 1) Cost- Refers to offering the product at a lower price relative to the prices of competing companies. 2) Quality- Important to customers when choosing goods and services which drives companies to make quality their main emphasis. There are two perceptions of quality depending on the person. To some, quality refers to the life-span of a product, while others focus on a product’s potential to perform. It is important to know different kinds of quality in order to please the customer and gain the competitive advantage. 3) Time- Efficiency and speed in developing and delivering products are vital because all companies are competing to deliver high-quality products in the fastest way possible. 4) Flexibility- Refers to a company being able to offer a variety of goods and services to pick from and the ability to customize the unique needs of the clients. Understanding and utilizing product and volume flexibility will also help the company in the competition. 6. A) An example of a company that focuses on quality is McDonalds. McDonald’s offers the same products and taste consistency so there are no surprises. McDonalds is the most popular fast-food chain in the world which indicates that...
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...product and service quality and how does it plan to do so for its new Pronto concept? Firstly, Porcini’s is a people processing service and it requires the active cooperation of customers. It has always thought about the process and output in the customer’s point of view. It did not adopt a franchising or a syndication model of ownership and did not risk the company’s quality reputation and avoided the pace of growth that the company was ill equipped to handle • Quality could be traced to the long experience of individual restaurant managers, supervisory personnel and chefs, a relatively stable workforce and to the recipes of Chef who had won the coveted James Beard award • Chef Mlolise applied culinary principles to Porcini’s less pricey menu and personally trained each outlet’s chef in her “flash cooking” techniques • Each Porcini’s created the ambience of a unique family-owned restaurant in keeping with its North End roots, unlike competitors who had “Italian theme park” atmosphere • Table service matched the food in quality and New England restaurant guide gave Procini’s its “best Chain Service” award for the 4th consecutive year • Brought unsalaried annual turnover down to an eviable 42% from 75% 3 years earlier through experimenting with recruitin, pay and perks • “Pathfinder Team” would form the staff core at each Pronto, bringing experience and the company’s quality culture in tow. Each team receive a full week of training and indoctrination in the rapid, quality service...
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...SWOTT Analysis Strengths • Offers new type menu not available in the area • Huge selection of menu items to choose from • Prices are cheaper than competitors • Customer service is high • Small overhead • Menu Flexibility Weaknesses • Restaurant is not established and new – no market presence or reputation • Cash flow issues in early stages Opportunities • Food conscious – healthier choices • Working with local farmers to supply organics products • Little competition in market Threats • Operating costs • High turnover rates for employees • Changing customer demands • Perception of product Trends • Healthy, organic food Introduction A restaurant owner who fails to plan plans to fail. Most restaurants will succeed, provided that their owners are determined, stubborn, and willing to take control of those variables that can be controlled. Changes in markets, competition, products, and customer perceptions are inevitable. Restaurants that can adapt to such changes because of foresight and careful planning will profit. A written business plan is helpful in so many ways that the time and effort to write and update it are trifling in comparison to the benefits it gives. Concept Organics is a unique concept. It will very easily fit into the marketplace. This health conscious concept is very desirable. Organics Salad and Sandwich Shop will be a low priced...
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...to their customers, or risk losing them to their competitors. In the United States competition is fierce, especially in the restaurant industry where according to the National Restaurant Association there are about 970,000 establishments. In this essay I am going to determine the competitive advantage that Chipotle Mexican Grill chain has over its competitors. Chipotle Mexican grill first opened its doors in 1993 and has since expanded to over 900 restaurants. It serves to demonstrate that food served fast doesn’t have to be a fast food experience, and offers its customers a casual dining experience that’s in line with full service restaurants. Some of the strengths of the restaurant includes its use of high quality ingredients, healthy menu options, recipes, cooking techniques, and restaurant design. According to its website (www.chipotle.com), the restaurant also recently evolved its vision and states that “fresh in not enough anymore.” It proudly boasts “Food with Integrity,” and states that it “means serving the very best sustainably raised food possible with an eye to great taste, great...
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...food. There should never be a time when a person is unhappy with their meal. You are paying for it of course. However fast food is mostly frozen. This allows places to simply heat up or finish cooking food and have it served in no time. You do get what you paid for and sometimes fast food is inexpensive. Fine dining on the other hand isn't. Typically in a fine dining restaurant the food is of higher quality, fresh, and the wait time is longer. Both have good customer service just on different levels. In fast food you enter the building, order, seat yourself then get your ticket called out. If you are in a hurry there's even drive throughs. On the contrary to fast dining when you enter a higher end establishment you get seated and handed a menu. There is a waiter there to take down your drink. Waiters do good jobs in making sure it stays filled. You place your order at the table. The meal is brought out to you and you get frequent checkups on how you everything is going. Most places do a good job on the interior work and have an appealing look to them. Though I do think the atmospheres are different. An atmosphere in a fast food restaurant is sometimes loud and open, as opposed to a...
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...counted with a flexible system where you either can order and sit, counting with the waiters to bring the food directly to your table or directly wait for your your food to be ready and then take it to your table. The service is open, generally, was open since 7 a.m. until 11 p.m.. Offering you around the morning hours what is in the Breakfast Menu. Regardless you were free to choose anything in the menu in any time of the day. The outside of the restaurant offered parking lots with easy access that were pretty handy at the time i had arrived, and it had its own security to take a look on the cars while the costumers were inside. Took me around only three minutes to find a good spot, park and get inside of the establishment. My visit to this restaurant was in the afternoon, around 3 p.m.. It was considered the peak hour of the day where you should have seen the place crowded. That was not the case, the place has more than the average amount of people but it only made you feel relaxed atmosphere and, somehow, welcomed. After getting inside, you could easily see the menu on the board behind the cashier, but also had a double page printed menu aside...
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...Project Proposal Song Tang(stang34@fordham.edu) 1. System Introduction & System Type In today’s age of fast food and take-out, many restaurants have chosen to focus on quick preparation and speedy delivery of orders rather than offering a rich dining experience. Until very recently, all of these delivery orders were placed over the phone, but there are many disadvantages to this system, including the inconvenience of the customer needing to have a physical copy of the menu, lack of a visual confirmation that the order was placed correctly, and the necessity for the restaurant to have an employee answering the phone and taking orders. What I propose is an online ordering system, which is a technique of ordering foods online applicable in any food delivery industry. The main advantage of my system is that it greatly simplifies the ordering process for both the customer and the restaurant. When the customer visits the ordering webpage, they are presented with an interactive and up-to-date menu, complete with all available options and dynamically adjusting prices based on the selected options. After making a selection, the item is then added to their order, which the customer can review the details of at any time before checking out. This provides instant visual confirmation of what was selected and ensures that items in the order are, in fact, what was intended. This system also greatly lightens the load on the restaurant’s end, as the entire process of taking orders...
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...The Rules of Innovation and Chipotle ORG 530: Business Ethics and Sustainability Colorado State University-Global Campus Dr. Robert Vega April 19, 2014 The Rules of Innovation and Chipotle It’s common to see a restaurant open one year and the next year they are closing their doors. In the restaurant business, a place will either sink or swim. So, what factors lead to profit and growth and what factors can be contributed to a failed or stagnant restaurant? Staying above the curve and always looking to improving a product or offering something new, is an important aspect to keeping a company in the green. Generally speaking a company needs to be innovative, which is exactly what Chipotle has done. Rules of Innovation According to CSU-Global, “innovation not only provides an opportunity for businesses to grow, it also offers the opportunity to influence the direction of an industry, “ (CSU-Global, 2014). Not only does innovation help in these aspects, it also can help create a better process that positively impacts the customer experience and a company’s profits. In 1993, Steve Ells opened his first Chipotle restaurant near the University of Denver campus in Denver, Colorado. His main goal when opening the restaurant’s doors was to provide healthy, fresh food. Normally, offering food that meets these qualities results in a high bill and a long wait time. This was the opposite of what Ells desired for his restaurant, he aimed to provide quality food without...
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