Food and Beverage

Management
Applications
Sales Analysis
 Menu Planning
 Sales Forecasting
 Menu Item Pricing
 Ingredient Purchasing
 Inventory Purchasing
 Inventory Control
 Labor Scheduling
 Payroll Accounting
Sales Reports
 Daily sales report: itemizes and summarizes
revenue for a day.
 Weekly sales spreadsheet: weekly summary of
daily sales report.
 Sales category analysis report: amount sold by
sales category and day-parts.
 Marketing category report: weekly totals
summarizing revenue earned by department and
category.
Menu Engineering is a menu management
application used for evaluating decisions
regarding current and future menu pricing,
design, and contents.
Menu Mix (MM) / Contribution Margin (CM)
Menu mix item is high when its MM is + or
= of 70% of its menu sales. Is low when is
– than 70%. Its CM is high when is + than
its average CM and low if its less.
 Menu items high in both MM and CM are stars
(winners)
 Menu items high in MM but low in CM are
plowhorses (marginal)
 Menu items low in MM but high in CM are
puzzles (potential)
 Menu items low in MM and low in CM are dogs
(losers)
Strategies
 Retain Stars
 Reprice plowhorses
 Reposition puzzles
 Remove dogs
 Menu Engineering Summary

Total Average Low High

Price $22,050.00 $7.35 $4.50 $9.95

Food Cost $12,374.70 $4.12 $1.95 $5.65

Contribution Margin $9,675.30 $3.23 $2.45 $4.55

Demand Factor 3,000.00 $300.00 $60.00 $600.00

Food Cost Percentage 56.12%

Number of Items 10
 Menu Mix Analysis

MM %MM Group % CM Contr. Group Menu

Item Name Count Share Rank Share Margin Rank Class
Fried Shrimp 210 7.00% HIGH 6.73 $3.10 LOW PLOWHORSE
Fried Chicken 420 14.00% HIGH 11.89 $2.74 LOW PLOWHORSE
Chopped Sirloin 90 3.00% LOW 2.37 $2.55 LOW DOG
Prime Rib 600 20.00% HIGH 18.6 $3.00 LOW PLOWHORSE
King Prime Rib 60 2.00% LOW 2.67 $4.30 HIGH PUZZLE
NY Strip Steak 360 12.00% HIGH 14.88 $4.00 HIGH STAR
Top Sirloin 510 17.00% HIGH 19.24 $3.65 HIGH STAR
Red Snapper 240 8.00% HIGH 7.44 $3.00 LOW PLOWHORSE
Lobster Tail 150 5.00% LOW 7.05 $4.55 HIGH PUZZLE
Tenderloin Tips 360 12.00% HIGH 9.12 $2.45 LOW PLOWHORSE

3000 $3.23
(Sum) (Average)
Managing Plow horses
Plow horses: menu items high in menu mix but low in
contribution margin
Strategies:
 Increase prices carefully
 Test for demand
 Relocate to lower profile on menu
 Shift demand to more profitable items
 Combine with lower cost products
 Assess the direct labor factor
 Consider portion reduction
Managing Puzzles
Puzzles: menu items high in contribution
margin but low in popularity.
Strategies:
 Shift demand to these items
 Consider a price decrease
 Add value to the item
Managing Stars
Stars: menu items high in contribution margin
and high in popularity.
Strategies:
 Maintain rigid standards
 Place for high visibility location on menu
 Test for selling price inelasticity.
 Use suggestive selling techniques
Managing Dogs
Dogs: Menu items low in contribution
margin and low in popularity.
Strategies:
 Increase selling price
 Remove from menu
Pre/Postcosting
Precosting: uses forecasted sales to
determine a menu’s profitability before
menu produced.

Postcosting: uses actual sales figures to

determine a menu’s profitability after menu
produced.