Professional Documents
Culture Documents
Menu Analysis
a b
John M. Antun & Catherine M. Gustafson
a
University of Tennessee , USA
b
University of South Carolina , USA
Published online: 22 Oct 2008.
To cite this article: John M. Antun & Catherine M. Gustafson (2005) Menu Analysis,
Journal of Nutrition in Recipe & Menu Development, 3:3-4, 81-102
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Menu Analysis:
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Design, Merchandising,
and Pricing Strategies
Used by Successful Restaurants
and Private Clubs
John M. Antun
Catherine M. Gustafson
INTRODUCTION
A menu tells a story about the dining operation. Its contents and de-
sign indicates to the consumer the operation’s overall concept and im-
age. The menu is a key factor in influencing the guest’s first impression
of the facility, the menu selections they are likely to order, and sets ex-
pectations about the food and beverages they are about to receive.
Closer analysis of a menu will also reveal many of the perceptions the
operator has of his or her customer base, the degree of culinary skills
likely to be found in the kitchen, and the level of service the patron can
expect in the dining room.
Menu development is an ongoing process. No longer can operators of
restaurants or clubs afford boring or stagnant menu selections. To main-
tain a competitive advantage, menus must remain flexible. Changes in
the menu can happen for many reasons. Restaurant and club operators
may choose to add new menu items, thereby initiating menu changes for
such reasons as, trying out new products, building consumer traffic,
cross-utilizing products already on hand, or simply offering their “regu-
lars” or members something new and different.
The average guest chooses to glance over a menu, and not read it
cover to cover, left to right, top to bottom. Research shows consumer’s
eye movements are predictable and will seek out visual points of inter-
est. The average restaurant guest spends less than three minutes reading
the menu (Main, 1995). In private clubs, often members do not even
open the menu prior to ordering, given they know it so well.
A dysfunctional relationship exists here–between diners and opera-
tors–of catastrophic proportions! How can restaurateurs and club man-
agers continue to place the lifeline of their operation in such a
precarious position, that a consumer can pass judgment on it in three
minutes or less–or worse, not even look at it at all. Of course it is likely
that closer analysis would reveal that restaurateurs and club managers
Menus 83
The hospitality industry has existed literally for many centuries. Ref-
erences to buying meals away from home, the equivalent of today’s res-
taurants, can be found dating back to the earliest travelers. References to
shared baths and coffee shops, the equivalent of today’s private clubs,
can be found dating back to the Roman and Greek Empires. However it
was not until after World War II, and then escalating in the 1970s, that
restaurateurs and club managers began to recognize the value, and its
potential, of their greatest marketing tool–the menu.
Club Industry
$2,444, up 24.8% from 1999 (York, 2002). In city clubs, the average
food and beverage spending per club member was $1,872 in 2000
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(York, 2002). Club managers and chefs must be responsive to the din-
ing needs and preferences of their membership. In 2003, 34% of manag-
ers in CMAA clubs reported their club had increased the size of the
informal dining space, while an additional 27% of managers reported
their clubs had increased the number of nights they offered casual din-
ing (CMAA, 2004).
Menu Design
draw attention to featured items and entice the customer to try ad-
ditional items. (Keegan, 1994, p. 132)
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There are a few “rules of thumb” which are well respected and often
shared throughout the hospitality industry. These include design ele-
ments need to reflect the concept of the dining room–casual is expected
in a pub, upscale in fine dining, and laminated in high volume establish-
ments. Mill (2001) states at a minimum in designing the menu, the menu
should identify the name of each dish, the major ingredients, and how
the dish is prepared. Main (1994) states the “back-to-basics, common
sense approach . . . the first item in every categorical listing should be
the one that has the highest gross profit contribution, and the last item in
every categorical listing should be the second-highest gross profit con-
tributor” (p. 79).
Sheridan (2001) recognizes the enormous impact menus can have on
a business. Using an analogy between the theater and restaurants, she
calls the menu the “coming attractions” to the restaurant business as
they whet the appetite, create expectations, and ultimately influence de-
cisions. She highlights numerous success stories of restaurants with
well matched menus to their theme. Sheridan shares design tips from
Molly Smith of Atlanta, whose clients include the Ritz Carlton, and
Lois Grimm of Chicago.
These two highly sought professional menu designers suggest:
• Do not crowd the menu with too many items or long, flowery food
descriptions. It intimidates and tires the reader.
• Use boldface type to highlight only the entrée name, not the de-
scription. Get the reader to glance over the menu first, then return
to read the description. Boldface grabs the eye.
• Use print size that can be easily read in any lighting. Test by read-
ing it in candlelight.
• Keep the size of the menu in proportion to the size of the table.
• Be practical. Menus in high-end restaurants change daily. Make
sure inserts can be printed in-house and are easy for the hostess to
assemble.
88 JOURNAL OF NUTRITION IN RECIPE & MENU DEVELOPMENT
tect and interior designer to use colors and textures that comple-
ment via typeface and paper stock.
• Menus need visual continuity to suggest style of dining, price, and
ambiance.
• Do not fear white space. Use it. White space allows the eye to
pause and rest. (Sheridan, 2001, p. 87)
Menu Merchandising
those items whose sale was the most advantageous to the house” re-
quires experience and extensive knowledge in both culinary arts and
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the consumer, wait staff, and chef. Consumers are demanding healthy
choices on the menu, and this is expected to only increase in the future.
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(7) Get back to basics. People enjoy basic foods, and like seeing some-
thing on the menu that is familiar (Sell the sizzle, 1995, p. S18).
Menu Pricing
Price points are what customers want to spend on certain menu items.
Each price point is influenced by the patron’s perception of value, mar-
ket driven prices, and fluctuations in demand (Main, 1994). These facts
are reinforced by Laube (1999), who states that determining menu
prices can be among the trickiest and most perplexing decisions for op-
erators. However, the customer’s purchase decision, based on their per-
ception of value, ultimately determines the price. Laube also suggests
operators should be aware of what their competition is charging for sim-
ilar menu items, and seek advice from their wait staff as they hear com-
ments directly from the customer.
Gordon (2003) examined three quantitative methods used for calcu-
lating menu pricing. However he cautioned that the price derived from
any method must be analyzed in relation to its perceived-price-value
from the customer’s viewpoint.
Several menu analysis techniques have been explored, created, ad-
justed, debated, and a few have claimed to be the best. Miller (1980) pio-
neered this area, and developed a matrix so operators could compare
different menu items. Miller stated the best items to have, and promote,
on the menu where those with the lowest food cost percentage, and high-
est popularity. Pavesic (1983) did not agree with Miller’s perspective,
and explained that operators who chose pricing and menu strategies that
promoted the overall lowest food cost were sacrificing total operational
revenues. Pavesic pointed out that with reduced total revenues, the
fixed-cost percentages needed in the operational may not be met.
Kasavana and Smith (1982) developed menu engineering as an advanced
analysis matrix. Menu engineering examines the contribution margin of
an individual menu item and its popularity. Menu engineering computer
software is available today to assist operators with this process.
Menus 91
Many research studies support the concept that a well designed and
well written menu can increase food and beverage sales, and ultimately
profits. “Properly priced, designed, and presented, the menu can increase
the average check, boosting sales of specialty items while completing the
overall atmosphere of the facility” (Mill, 2001). Frei (1995) states a menu
determines the image, price range and profit potential of a restaurant.
Frei (1995) interviewed restaurateur Bill Main, seeking advice on
creating a profitable menu. Main identified a five-step strategy to make
menus more profitable.
METHODOLOGY
Sample
Data Collection
follow up letters were sent to those not responding, and, finally, several
establishments were later called and personally asked for their coopera-
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tion. These efforts yielded 61 menus from private clubs and restaurants.
A matrix was created to facilitate the evaluation of each menu and an ac-
curate comparison of all the menus in the study. According to Kiewra, a
matrix is a grid or cross-classification table representing information
along two dimensions. Column headings designate topics; row headings
designate repeatable categories common to the topics (1994). Relational
information is drawn more easily from a matrix. In particular, the matrix
is computationally efficient because it localizes the information and facil-
itates perceptual enhancement (Larkin & Simon, 1987).
These data from these matrices were then entered onto the statistical
software program and prepared for the application of several statistical
descriptive data and Inferential tests.
Findings
What follows are bar charts comparing private clubs and restaurants
menu pricing. Particular problems were encountered when making
price comparisons across the sample. Difference in recipes and the in-
gredients included in different recipes resulted in undiscoverable rea-
sons for differences in prices. Consequently, the researchers “leveled
the playing field” by listing the menu items according to their major in-
gredient–beef, pork, etc.
The data presented below is charted so as to best compare the entrée
prices of private clubs and restaurants.
The data on Charts 1 and 2 clearly indicate that, in general, private
clubs menu offerings are either the same or less expensive than the res-
taurants. This might fly in the face of conventional wisdom which dic-
tates that “meals in private clubs are usually more expensive than in a
local restaurant.” Although the poultry items are slightly more expen-
sive, restaurants had offerings at a far higher level than the private clubs.
In the seafood area these same phenomena occurred.
Charts 3 and 4 identify a clear divergenance among private clubs and
restaurants. Few private clubs offered pork items on their regular fine
96 JOURNAL OF NUTRITION IN RECIPE & MENU DEVELOPMENT
10 POULPRIC
10-12.5
8
12.6-15
6 15.1-17.5
17.6-20
4 20.1-22.5
22.6-25
2
25.1-30
Count
0 30.1 +
Club Restaurant
Type
14
12
10
FISHPRIC
8
12.6-15
6 17.6-20
20.1-22.5
4
22.6-25
2
Count
25.1-30
0 30.1 +
Club Restaurant
Type
dining menu whereas restaurants offered a broad array. The lamb of-
fered by clubs was almost all above $25.00 per entrée whereas restau-
rants offered a broad base of lamb dishes.
This would indicate that, in general, restaurant menus seem to be
more broadly based than private clubs’ menus.
Here again (see Chart 5) it can be deduced from the data shown above
that clubs tend to offer their entrees at a lower price than restaurants.
Menus 97
6
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4
PORKPRIC
15.1-17.5
3
17.6-20
2 20.1-22.5
22.6-25
1
7
Count
0 30.1 +
Club Restaurant
Type
16
14
12
10 LAMBPRIC
15.1-17.5
8
17.6-20
6
20.1-22.5
4
22.6-25
2 25.1-30
Count
0 30.1 +
Club Restaurant
Type
98 JOURNAL OF NUTRITION IN RECIPE & MENU DEVELOPMENT
14
12
10
BEEFPRIC
8
15.1-17.5
6 17.6-20
20.1-22.6
4
22.6-25
2 25.1-30
Count
0 30.1 +
Club Restaurant
Type
Chart 6 indicates that the breadth of the seafood offerings at both pri-
vate clubs and restaurants appears to be almost the same. This also ne-
gates the normative consensus that private clubs only offer small menus
that appeal to a limited number of people–affluent members.
CORRELATIONS
“Your menu is more than a mere listing of every dish you offer. It is
a resume, an autobiography, an extension of sell presented strategi-
Menus 99
10
Type
Club
Count
Restaurant
0
crustacean grilled w/sauce both
FISHTYPE
TABLE 1. Correlations–Restaurants
Correlations
TABLE 2. Correlations–Clubs
Correlations
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cally, it can also be your most successful profit making device” (Frei,
1995, p. 144). Hence, what is offered via the menu sets the tone for the
establishment, be it a private club or a public restaurant. Clearly there is
fierce competition in the marketplace for food dollars. This would then
necessitate these two large segments of the fine dining arena to under-
stand each other as competitors and deal with each other in a manner
consistent with competition.
That is, restaurants are offering menus with selections, breadth of se-
lection and pricing that is far more similar than it is different from pri-
vate clubs. Restaurants and private clubs are competitors for the same
dollars spent by diners in both their establishments. If either or both of
these market segments want to remain a force to be reckoned with, they
will need to take the other into account when strategically planning their
activities.
Menus 101
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