Factors Affecting Decisions Involved In Menu Planning - Assignment Example

Menu Planning Contents Factors affecting decisions involved in menu planning 0 Discuss the principles of recipe development 3 How to Develop Recipe 4 Assessment of Factors having influence on menu planning decision 5 Factors to Consider in Menu Planning 5 Discuss factors that influence service methods 7 Understand menu product development planning processes 7 The stages of menu product development planning 8 New product development 8 Evaluate influences on the development process 10 Reference List 14 Factors affecting decisions involved in menu planning List of items that are available for sale in food services operations is known as Menu. Customer for making decision regarding what goods to purchase and what not to purchase requires a menu. And without this menu customer won’t be able to make purchase decision. Menu card if effectively designed and is conveying all relevant information provided by it, can be used as both sales and marketing tools. Menu card also is source for generating sales transactions and as stated above if it is conveying all relevant information, it can also lead to increase in number of customers (Gustafsson, Öström, Johansson, & Mossberg, 2006). Hence, automatically increasing sales volume. How the menu looks, reflects as to what is company’s mission and objective. So the menu should be designed in such a manner that it is in accordance to theme and values of the company. Core objective and image of the company should be in line with market dynamics. Factors which can affect customers can vary from market to market. These can be how readable content on menu card is, overall physical scheme, outline, and font styles. As for other factors in communication it is the presentation that is more important rather than what content has been presented in menu card (Glanz, et.al. 2007). Example of this can be fast food restaurants where they have limited items presented in menu. However they sell in bulk quantities. Concept of common counters is present in fast food chains. Hence separate menus aren’t required for each customer. Class of customer coming to fast food chains don’t require descriptions of each product as they are familiar with products being offered. If description is present in the menu it would only serve to slow down decision making process. In these common menus on common sales points, only product name, price and other add ups are being shown along with enlarged picture of product being sold. For avoiding reputational risk, fast food chains need to keep the original product as being shown on sales point. This overall strategy which has been implemented across fast food chains leads to quick service and limited products available at same price at all units of fast food chain (Born, & Purcell, 2006). Alternatively, when we move towards restaurants which present sophisticated theme, class and group of customers being catered change and with it overall theme of menu changes. Number of food items being presented on menu also increases (Ayala, et.al. 2005). Catering to upper class, table service restaurants need to have elegance. Hence menus are designed like books having in-depth detail regarding each and every dish being offered. It is also to be known that customers coming to these types of restaurants have ample time as they want relaxing and enjoyable dining. Hence detailed menu isn’t a problem for them. Many restaurants now have daily items or shall we call them specialties being offered on menu card. I order to increase attention of customers on these items; menu card is designed in such a manner that it is boxed in the menu. This boxing technique enhances attention of customers towards given items. Another technique which can enhance sales volume which also is good for gaining attention of incoming customers is by listing down specialties on board just near or at entrance of the restaurant. An example of this can be a sea food restaurant which on entrance has placed a chalk board which lists down timings of each items fresh catch. This gives a positive message to customer base being catered that all items being presented are fresh. This leads to strengthen of customer’s confidence (Menu Planning Considerations). In a fast paced evolving food business, menus also need to be dynamic. However it is to be noted that dynamics heavily depend on obtainability of raw material, number of dishes being offered, how can be leftovers being utilized, ingredients readily available in local market, what do the customers prefer most and ever changing demand of customer base. Prices also play key role in distinguishing a menu of fast food restaurant from that of traditional one. Where menus are presenting seasonal foods, prices are excluded. Example can be traced back from restaurants offering sea food, prawns or lobsters are mostly listed with prices as per market due to fluctuation in prices of these items on daily basis. When dealing with such items, owners of restaurants either assume that customers demanding such items either does not worry about pricing or in second case with inquire as to what are the rates. Setting up menu prices is the second barrier that the menu designer faces is how to decide the price. Customers coming in for dining look for products that offer more value in price being paid. Hence offerings should be designed in such a manner that they are competing market prevailing prices and offering more to customer as per his requirements. However, offering too much on given price can fire back as customer would think negatively about given business hence effecting reputation of the business (Menu Planning Considerations). Menu on first sight only reflects that it has been designed to serve the customer. However on back end it is also serving the entire food service system running at back end (Gustafsson, Öström, Johansson, & Mossberg, 2006). All basic operations related to food are connected to how well food menu has been designed. While designing food menu, resources on hand of food manager should also be given ample consideration. At back end what planning has been done by food manager should be made part of menu designing. This will help in providing best possible combinations on menu card being presented to customer which can either increase or decrease sales. Discuss the principles of recipe development First basic question which comes up is what is recipe? In lay man language it could be defined as standard and tested procedures involved in preparation of food, in which food ingredients involved are to be used in acceptable proportion and time and temperature have already been decided. This all is being done in order to achieve specific product which is in line with taste of customers. Small mistake in dimension of certain ingredient, procedures and equipment may create final product which is against taste of customer (Cooper, & Edgett, 2006). This leads to customer dissatisfaction which automatically has negative impact on sales volume. How to Develop Recipe Project Planning Designing of recipe is the initial step however even before this step, planning of project should be done. This step is important keeping in view that it would consider all minor details of the project. Planning process will help in following: Deciding on objective and priorities Defining the actions which need to be taken along with priorities Listing down tasks Allocation of time affectively Evaluation of physical factors having impact on project Communication pattern to be imparted Motivational techniques Evaluation of information being received It is also a key to identify what are key objectives of customer, background details, mission goals, information regarding the product, trends persisting in the market, features of end users and market dynamics. RECIPE TESTING Testing of recipe includes either testing new product or test being conducted on existing recipes. These hold key towards success of recipes. Another technique which could be used in is conducting focus groups. This helps in testing procedures and results. It is general experiences that while creating a recipe; adjustments and adaptations are required somewhat in order to achieve the best possible outcome. Many of us while visiting certain restaurant have had the experience of getting the opportunity to have the special recipe. However when given customer goes home and tries it, final product never comes out to be same as promised in recipe. Conducting a focus group on busy street is the best possible manner to measure the success. It helps in minimum amount of adjustments and produces the final product in accordance to the likes of customers (Ottenbacher, & Harrington, 2007). Assessment of Factors having influence on menu planning decision Factors to Consider in Menu Planning Availability of Foods – Menu is to be designed in such a manner that it should have no such thing included which cannot be brought from the market. In case such an error is made, reputation of whole restaurant is on stake. Availability of specific goods should be the basis of designing particular menu (Cooper, & Edgett, 2006). Seasonality should also be given enough weight as it also has an important role. Availability hence becomes the single most important factor. Money Available – No business can claim unlimited amount of cash availability. Before planning for designing of menu or food to be included or made part of menu, one should give enough consideration to the budget and constraints. Another key aspect is predicting future cash flows and expenses. If future cash inflows are properly forecasted keeping in view all environmental factors than proper planning can be done. Time Availability – Providing customers with timely delivery is also another key in gaining top level customer satisfaction. Keeping in view that customers also have to manage the time, hence delivery of order to customer should be in such a time frame that it meets customers demand (Ayala, et.al. 2005). Ordered items should be prepared in shortest time possible in such a manner that it is meeting the quality standards being promised. In order to achieve this saving technique should be implemented. Type of Customers – Customer base to be targeted should be segmented according to occupation, sex, age, socio economic factors and nutritional trends in the society. Example can be of a canteen operating in university. Since it is catering to teenagers it should have mixture of both healthy and junk items. Combination is necessary in order to cater all types of teenagers. Menu should also be price considerate. Since both upper and middle class students would be approaching the canteen. Seasonality should also be considered. Environmental Conditions – Setting up a restaurant in a particular locality is one step but setting up the menu in accordance to the local environment is another key in the chain Han, H., Back, K. J., & Barrett, B. (2009). Dishes on offering should be in line with the environmental temperature. Dishes which are hot in nature can be useful in serving on cold rainy days but if same are on offering in hot humid days, it would not only add up to the cost of doing business but will also result in spending of budget on inventory not useful or inventory which isn’t generating income. Hence menu card offering dishes should be kept as per weather conditions. Occasions – Every community has their own set of set of special events which tend to be celebrated as per culture. Christmas, birthdays, anniversaries etc. are key examples. Such events and others require special menus; menus which are according to the event to be celebrated. Type of Business – Menu card should also be in line with type or form of business being operated. If restaurant is catering to fine dining than dishes on offering and menu card also should be as per theme of the restaurant. Hours of doing business should also be considered as it also has an immediate effect on customer base (Witkowski, 2007). Discuss factors that influence service methods Before planning on menu, planner should have sufficient knowledge on customer base which is to be catered. Also planner should know the number of employees and their respective backgrounds. As servers are the ones who come face to face with the customer and play key role in satisfaction of customers. Facility where kitchen is to be locate and looks or layout of kitchen area also play important role. Serving pattern also gives the restaurant cutting edge over other competitors. Understand menu product development planning processes In order to setup a standard menu which has all items on offering which could cater to the needs of targeted customers, proper & in-depth SWOT analysis, and consumer / market trends should be analysed (Booth, et. al. 2001). Proper analysis should also be done on customer needs, consumer habits and changing trends in the society. In next step, is budgeting. In this step appropriate market feasibility report is created reflecting all sorts of costs that would need to be allotted. Also sales volume forecast, estimated selling price, profitability, breakeven, technical aspects of launching a product and advertising/ promotion budget. While planning promotional activity, appropriate tools should be considered. Market analysis would cater identification of competitors, pricing strategy, and fixed/ variable costs to be incurred. Forecasting of sales volumes and revenues should also be done (Witkowski, 2007). The stages of menu product development planning New product development Process of developing a new product is a process which starts from developing a particular idea and finishes with launching of new product in the market. Whole process is based on two parallel pillars. One is idea generation, deciding the design of product and minute details. Other pillar involved detailed analysis of market situation. For majority companies developing of idea regarding a given product is initial step of product life cycle management and is effectively used for maintaining growing market share (Ottenbacher, & Harrington, 2007). Following are the steps of New product development (Kotler, 2010): The Process 1. Idea Generation - Initial stage of Product Development includes Idea Generation. Basic techniques which are applied across the board include SWOT Analysis, Market/ consumer trends to be analysed, research on competitors, conducting specific focus groups, trade shows and different researches on consumer habits existing in the industry (Antun, & Gustafson, 2005). Idea generation step starts with proper analysis of what opportunities and threats exists for the company. Idea Generation step is followed by Idea Screening step 2. Idea Screening The purpose of second step is to remove illogical ideas which don’t match with specific company goals, prior to resource allocation. Following questions should be asked by person or individuals doing screening (Born, & Purcell, 2006). Will the customer in the target market benefit from the product? Who is our target market? What is the size and growth forecasts of the market segment/target market? What are the industry sales and market trends persists? Is it viable to produce such a product? Will the product be profitable when manufactured and delivered to the customer at the target price? 3. Concept Development and Testing Develop the marketing details Examine rational property issues and search patent data bases Who is the target market? What product features should be made part? What benefits which product will be able to deliver? Consumer reaction to product? Will the product development be able to achieve cost effectiveness? Prove feasibility through test models What will it cost to produce it? 4. Business Analysis In business analysis, appropriate estimates should be made regarding selling price and appropriate customer review. And estimate of sales volume which should be based on size of market should also be presented. 5. Beta Testing and Market Testing Produce a physical sample Test the product (and its packaging) in typical market situation Focus groups and customer interviews Produce an initial run of the product and test it in test market environment Check and review level of customer approval 6. Technical Implementation New program commencement Confirm Quality management system Resource approximation Prerequisite publication Publish technical communications Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies – Deciding on plan B 7. Commercialization Unveiling of new product Leading promotions and other marketing tools Hammering distribution lines with product Critical path analysis 8. New Product Pricing Impact of new product on entire portfolio Value Analysis Competition and use of technology Differing value segments (price, value, and need) Fixed and Variable costs Forecast of unit volumes, revenue, and profit Evaluate influences on the development process Product Control Procedures: Product line of F&B should be under control. If a certain item has been listed in menu card than it should be available to customers 24/7. For this all ingredients should be purchased at best possible price, stored and prepared as per requirement of the customer. Cost Control Procedures: Cost plays vital role in success of any product. Careful cost control procedures should be implemented in such a manner that forecasted revenues are efficiently achieved. In order to set appropriate cost of all products, customer feedback also plays a very vital role in setting up the bench mark (Glanz, et.al. 2007). Production Requirements: Consistency is must for producing of food items mentioned in menu. For this appropriate ingredients should be readily available. The following parameters are all dictated by the Menu: Quality of the product Productivity of staff Skills which presently employees have and what in future would be required Timing and Scheduling Nutritional Content of Meals: Globally awareness is spreading regarding nutritional requirements and standard of kitchens in which meal is being prepared (Cooper, & Edgett, 2006). People visiting restaurants are also more concerned about ingredients being used in meals. All this is happening due to increase in awareness regarding impact of ingredients on health. Equipment Needs: All Equipment required to yield the Menu must be available. The Menu must be balanced such that no one station in the Kitchen is Pressurized or under – utilized. Hygiene Management: Maintenance of hygiene standards is termed as the key control point after which customer base of restaurant could be increased (Witkowski, 2007). Management of the restaurant should consider all possible standards. Potential risk identification should be done effectively and then relevant steps should be taken to reduce the given risk. Layout and Space Requirements: Appropriate space should be available for both production facility and storage of relevant items. Space also plays an important role in setting high standards of preparation of meals. Hence physical space and relevant production equipment play key role in setting appropriate standards. Staffing Needs: Staff should be aware of customer needs and should be able enough to communicate effectively what the customer requires. Serving in best possible manner also is an important step since it helps in satisfying customer appropriately (Han, Back, & Barrett, 2009). Health of staff both on production unit and serving should keep their health in good shape. Revenue Control Procedures: In today’s competitive environment, revenue management plays vital role in success of business. For a fast food, items that are profitable and liked by customers should be made part of the menu card. Items that are giving constant cash inflow should also be given importance, hence star products and cash cows should be combined in such a manner that customer satisfaction increases. Items that aren’t giving cash inflow should be firstly changed a little to check customer response. If response isn’t positive, product should be taken off the menu card (Booth, et. al. 2001). Reference List Antun, J. M., & Gustafson, C. M. (2005). Menu analysis: Design, merchandising, and pricing strategies used by successful restaurants and private clubs. Journal of nutrition in recipe & menu development, 3(3-4), 81-102. Ayala, G. X., Mueller, K., Lopez-Madurga, E., Campbell, N. R., & Elder, J. P. (2005). Restaurant and food shopping selections among Latino women in Southern California. Journal of the American Dietetic Association, 105(1), 38-45. Booth, S. L., Sallis, J. F., Ritenbaugh, C., Hill, J. O., Birch, L. L., Frank, L. D., ... & Hays, N. P. (2001). Environmental and societal factors affect food choice and physical activity: rationale, influences, and leverage points. Nutrition reviews, 59(3), S21-S36. Born, B., & Purcell, M. (2006). Avoiding the local trap scale and food systems in planning research. Journal of Planning Education and Research, 26(2), 195-207. Cooper, R. G., & Edgett, S. J. (2006). Stage-Gate® and the critical success factors for new product development. BP Trends, 1-6 Gustafsson, I. B., Öström, Å., Johansson, J., & Mossberg, L. (2006). The Five Aspects Meal Model: a tool for developing meal services in restaurants. Journal of Foodservice, 17(2), 84-93. Glanz, K., Resnicow, K., Seymour, J., Hoy, K., Stewart, H., Lyons, M., & Goldberg, J. (2007). How major restaurant chains plan their menus: the role of profit, demand, and health. American Journal of Preventive Medicine, 32(5), 383-388. Han, H., Back, K. J., & Barrett, B. (2009). Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers.International Journal of Hospitality Management, 28(4), 563-572. Kotler, P. (2010). Marketing Management. (Millennium Ed.). Upper Saddle River: Prentice Hall International. Menu Planning Considerations. [Online] Available at: http://www.anfponline.org/Publications/articles/2004_05_Menu. Accessed on 26th March 2015. Ottenbacher, M., & Harrington, R. J. (2007). The innovation development process of Michelin-starred chefs. International Journal of Contemporary Hospitality Management, 19(6), 444-460. Witkowski, T. H. (2007). Food marketing and obesity in developing countries: analysis, ethics, and public policy. Journal of Macromarketing, 27(2), 126-137. Read More