2.

Menu planning (Tiff) 

2.1 Standard menu 
The Keg has two menus, one for Lunch and one for Dinner. The Lunch
menu offers 5 categories: Starters and Soup, Salads, Steak+Prime Rib,
Casual Plates, and Sandwich+Tacos. Whereas the Dinner menu offers
8 categories: Appetizers, Salad, Burgers, Steak+Prime Rib,
Steak+Seafood, Keg Classics, Seafood Chicken and Ribs. “The Keg
classic” menu is one of special options that brings the restaurant the
amount of profits. 

The Keg offers a Kids menu as well as a separate Dessert menu. The
Kids menu consists of Meals, Sides, and Smoothies, while the Dessert
menu offers an assortment of after dinner treats and Coffee choices as
well. 
- the Keg has what’s called “Hero” products, which are the most well-
known and have the highest profit margins. Prime Rib is an example
a Hero product with a set price. Another category would be
Features. These are specifically designed to bring in new guests.
These items will usually be priced closer to cost. For example, the
Lobster Salad is an item that earns comparatively less than most of
the other menu items, but it is already priced at 60 dollars. The Keg
is currently utilizing the Features section as a method to appeal to a
younger demographic
- The Classics category are the top selling items at the Keg. This
category all comes with a starter salad, appealing to the customer
as a value deal, however, this also works quite well for the
restaurant as salads can be relatively inexpensive.
 Advantage: Its easy to forecast menu sale and revenue
also discard the precooking item. 
 There are several factors affect menu pricing
(COMPETITION, SERVICE level, Guest type, Quality &portion
size, Ambience, Meal period, Location: look at background
of information.)

+ The competitor from Earls, Cactus Club, Milestones,

Browns Social House, and many more. They offer the lower
price, attract more younger people.

+ The other factor: location, where too far from the city
centre-> attract more old people but does not bring that
much profit.

+ The weather, seasonal and inventory vending.

2.2 Happy hour

  The strategy to bring more profit 
 They offer happy our that depends on location.  
 Happy hour on drinking menu                          
(https://www.ultimatehappyhours.com/restaurants/keg-
steakhouse-alberni/?
fbclid=IwAR1q9F3aVOpgHr4cd1h2tbI4_qHHPtvxAP8tsM2s07G9k_
cKzSh2-UnOZVA)
- They also offer the gif card- convenient.
         2.3 Menu analysis and menu engineering
1. - Operation Costs?
Around 25-35%. Following the 30/30/30/10 Rules. 30% Food Cost, 30%
Operations Cost, 30% Labour Cost, 10% Profit.
2. In terms of revenue, about 20% comes from drinks and 80% comes
from food.
-The keg is famous for its classic (food cost around 27%). They have the
highest contribution margin. They come with a salad

-Their lobster for instance have a low CM because of its very high food cost
price. It is an expensive dish ($60) that drives others expenses (wine,
entrees, tips)

-Average guest check : $45-$50, more customers in summer or Hockey

season.

- 80% of their food revenue comes from their classic and their
beverage represents 20% of their total sales
- Vodka moves very fast in terms of liquor
- The menu items at the Keg are priced into different categories.
For example,.
- The Prime Rib Roast is very profitable. Three slices will pay for
the entire roast. 27-30% profit. Food cost can be quite stable as
the Keg benefits from economies of scale.
4.1 labour cost and capacity planning (Tiff)

the Keg traffic is largely based around events. The restaurant keeps an
“events calendar” and will often plan their hours and staff around
these events. The Keg also uses OpenTable, an online table booking
web application. This will give the restaurant a good indication of the
daily traffic. Squirrel is another software used as their Point of Sales
software which generates reports. These reports allow for historical
analysis which allow the restaurant to predict their seasonal rushes
Dayforce is used as the scheduling software in coordination with the
accounting department. The Keg Staffing is cyclical. When the holiday
season comes, they will increase their staff as they do about 40% more
business from November to January. This can result to doubling or
even tripling staff to account for all the additional demand. On a slow
night 6 people on the line cooking 4-5 support staff, about 10 servers
and 2 managers up to 24 people, compare to a busy night during
Christmas can see up to 8 people on the line cooking, 2 dish washers,
5 host, 5 bussers, 5 managers, 5 servers up to 45 people.
-The organizational structure: General Manger (who manage all the
restaurant system, revenue, operational system). In each department,
they have the head management: Dining Room Manager, Bar Manager,
Kitchen Manager, Guest Services Manager.
-