SITHKOP002 - Plan and Cost Resource

Plan and cost basic
menus
SITHKOP002
Plan and cost basic menus
Application
This unit describes the performance outcomes, skills and knowledge required to
plan and cost basic menus for dishes or food product ranges for any type of
cuisine or food service style. It requires the ability to identify customer preferences,
plan menus to meet customer and business needs, cost menus and evaluate their
success.
It does not cover the specialist skills used by senior catering managers and chefs
to design and cost complex menus after researching market preferences and
trends. Those skills are covered in SITHKOP007 Design and cost menus.
The unit applies to hospitality and catering organisations. Menus can be for
ongoing food service, for an event or function, or for a food product range such
as patisserie products.
It applies to cooks, patissiers and catering personnel who usually work under the
guidance of more senior chefs.
No occupational licensing, certification or specific legislative requirements apply

to this unit at the time of publication.
Pre-requisite Unit
NIL
Competency Field
Kitchen Operations
Unit Sector
Hospitality
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Elements and Performance Criteria

ELEMENTS PERFORMANCE CRITERIA
(Describe the (Performance criteria describe the performance needed to
essential outcomes) demonstrate achievement of the element)
1. Identify 1.1. Identify current customer profile for the food business.
customer
preferences. 1.2. Analyse food preferences of customer base.
2.1. Generate a range of ideas for menus for dishes or food production
ranges, assess their merits, and discuss with relevant personnel.
2.2. Choose menu items to meet customer preferences.

2. Plan menus.
2.3. Identify organisational service style and cuisine, and develop
suitable menus.
2.4. Include balanced variety of dishes or food production items for the
style of service and cuisine.
3.1. Itemise proposed components of included dishes or food
production items.
3.2. Calculate portion yields and costs from raw ingredients.

3. Cost menus.
3.3. Assess cost-effectiveness of proposed dishes or food production
items and choose menu items that provide high yield.
3.4. Price menu items to ensure maximum profitability.
4.1. Write menus using words that appeal to customer base and fit with
the business service style
4. Write menu
4.2. Use correct names for style of cuisine
content.
4.3. Use descriptive writing to promote sale of menu items
5.1. Seek ongoing feedback from customers and others, and use to
improve menu performance
5. Evaluate menu 5.2. Assess success of menus against customer satisfaction and sales
success. data
5.3. Adjust menus based on feedback and profitability.
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Table of Contents
1 Introduction ..................................................................................................... 1
2 Customer preferences .................................................................................. 2
2.1 Strategies to identify customer needs ..................................................................... 2
2.2 Needs of the customer ............................................................................................... 3
2.3 Information on customer profile and preferences................................................ 4
2.4 Customer groups .......................................................................................................... 5
2.4.1 Age range ...........................................................................................................................5
2.4.2 Buying power or income level.........................................................................................5
2.4.3 Gender.................................................................................................................................6
2.4.4 Social and cultural background .....................................................................................6
2.5 Food preferences......................................................................................................... 6
3 Service styles ................................................................................................... 8

3.1 Table service ................................................................................................................. 8
3.2 English service ............................................................................................................... 8
3.3 French service ............................................................................................................... 8
3.4 Silver service .................................................................................................................. 8
3.5 American service ......................................................................................................... 9
3.6 Russian service .............................................................................................................. 9
3.7 Cart service / Guèridon service ................................................................................ 9
3.8 Snack bar service ......................................................................................................... 9
3.9 Self service ................................................................................................................... 10
3.10 Buffet service ........................................................................................................... 10
3.11 Cafeteria service .................................................................................................... 10
3.12 Single point service ................................................................................................ 10
3.13 Room service ........................................................................................................... 10
3.14 Take away service ................................................................................................. 11
3.15 Mobile pantries ....................................................................................................... 11
3.16 Blue plate service ................................................................................................... 11
3.17 Automatic or conveyer belt service .................................................................. 11
3.18 Robotic service ....................................................................................................... 11
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4 Plan the menu .............................................................................................. 13

4.1 Menu planning ........................................................................................................... 13
4.1.1 Standardized Recipe Cards ......................................................................................... 14
4.2 Types/styles of menu ................................................................................................. 15

4.2.1 By price ............................................................................................................................. 16
4.2.2 By meal schedules .......................................................................................................... 18
4.2.3 By meal times ................................................................................................................... 20
4.2.4 By speciality ..................................................................................................................... 20
4.3 Creating a menu ........................................................................................................ 22

4.3.1 Design ............................................................................................................................... 23
4.3.2 Categorization ................................................................................................................ 23
4.3.3 Description ....................................................................................................................... 23
4.3.4 Photos................................................................................................................................ 24
4.4 Constraints in developing a menu ......................................................................... 24

4.4.1 Type of menu ................................................................................................................... 24
4.4.2 Customer profile .............................................................................................................. 24
4.4.3 Sales records .................................................................................................................... 24
4.4.4 Location ............................................................................................................................ 25
4.4.5 Pricing structure ............................................................................................................... 25
4.4.6 Personnel .......................................................................................................................... 25
4.4.7 Kitchen capabilities ........................................................................................................ 26
4.4.8 Bench, cool room and storage space ....................................................................... 26
4.4.9 Seasonality ....................................................................................................................... 26
4.4.10 Accessibility of supplies .................................................................................................. 26
4.4.11 Profitability ........................................................................................................................ 26
4.5 Menu balancing ......................................................................................................... 27

4.6 Menu descriptions ...................................................................................................... 28
4.6.1 Tips in writing a menu ..................................................................................................... 29
4.6.2 Menu spelling and grammar ........................................................................................ 30
4.7 Menu design options ................................................................................................. 30

4.7.1 Paper stock ...................................................................................................................... 30
4.7.2 Format ............................................................................................................................... 31
4.7.3 Layout ............................................................................................................................... 31
4.7.4 Font style ........................................................................................................................... 31
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4.8 Menu evaluation ........................................................................................................ 32

4.9 Standard measures.................................................................................................... 34
4.10 Popularity of menu items ...................................................................................... 35
4.11 Naming convention and culinary terms for variety of cuisines .................... 37
5 Cost the menu .............................................................................................. 39

5.1 Rules while pricing the menu ................................................................................... 41
5.2 A well-priced menu must be: .................................................................................. 42
5.3 Portion size and cooking .......................................................................................... 42
5.4 Portion size and food cost ........................................................................................ 42
5.5 Food cost ..................................................................................................................... 43
5.5.1 Calculating food cost .................................................................................................... 43
5.6 Food cost percentage .............................................................................................. 46

5.7 Yield percentage ....................................................................................................... 48
5.8 Butcher’s test ............................................................................................................... 49
6 Customer feedback .................................................................................... 51

7 References .................................................................................................... 53
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1 Introduction
Menu is the vibrant marketing and sales tool for the restaurant to market its food to
the customers. The design of the menu directly affects the restaurant income. A
strategically designed menu will help the restaurant to take appropriate decisions on
how much to buy, keep in inventory and how much to prepare.
Menu is the restaurant’s business card. The menu must draw customer attention to
menu items and pricing. Strategically designed menu will improve the turnover time
of both customer and the restaurant. Naming the items specifically or creatively
using dynamic descriptions of the item ingredients makes the food sound more
enticing and exotic.
The menu design must be consistent with the idea and image of the restaurant and
must successfully communicate the overall eating experience to the customer. In
addition, it must also convey the restaurant’s brand which makes the customers
enthusiastic to be there, to visit again and to recommend it to family and friends.
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2 Customer preferences
Customer preference is the tendency to specify choices either positive, negative or
neutral options with regard to the specific product. Customer taste is as unique as a
fingerprint. Hence, while developing a menu, wide variety of customer tastes and
styles are considered. The customer likes and dislikes can be simply identified by the
types of dishes that are sold well and those dishes that move slowly.
The food industry management must give high priority on understanding the growing
demands in the markets such as rapid urbanization and increasing tourists. Food
industry has a huge impact on the global economy but is affected by customer
preferences.
The important customer preferences for food are taste, price, quality of service, halal
(permissible in Islam community) and branding. Identifying customer’s needs and
preferences helps the business to formulate the strategies and methods in planning
a menu. This results in:
• Attracting more customers

• Setting the best price for the dishes
• Increasing the amount spend by customers
• Increasing the frequency of customer visit
• Increasing the sales
• Improving the customer service
2.1 Strategies to identify customer needs
a) Recognizing customers
Each customer is different based on the place they reside and the needs. Business
must identify the specific customer needs to which they are willing to serve or sell the
product. This can be achieved by addressing the unique customer preferences.
The initial step is to recognize the customers, to get complete picture of them and to
highlight the key characteristics of the potential customers. This will help the business
to understand how to target their customers.
b) Learning customer needs and preferences
Business must take time to learn about customer needs and preferences such as
what they know, what they value and what their preferences are?
The more the business learns about the customer’s needs and preferences, the more
successful the sales will be.
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c) Building customer relationships
Businesses must build customer relationships which will motivate the customers to visit
again and refer others. Building relationships need customer attention at all stages.
Acquiring new customer is more expensive to the business than to retain the existing
one. Hence, efforts on building relationships are profitable.
d) Service recovery and continuous improvement
Despite the best efforts, business makes some mistakes which dissatisfy the
customers. The mistakes can be handled quickly and effectively with customer
oriented sales strategies and by continuously seeking information from customers
about the products and services that need to be improved.
2.2 Needs of the customer
The basic needs of the customer are:
a) Service: Customers expect the appropriate service for the level of purchase
made.
b) Price: Customers use their financial resources efficiently. Many products which
were earlier considered as unique offerings are now considered as commodities.
Hence, pricing is important for every customer.
c) Quality: Most of the customers are less likely to question the product price if the
company is delivering good quality product. Hence the quality of the product
served or sold must meet the regulations.
d) Help and backup: Customers always need help when problem arises. The help
from the business can be through many ways such as customer support
telephone lines, flexible return policies, personal contact etc.
e) Appreciation: Customers must be appreciated for providing the feedback. This

encourages the customers to provide the effective feedback which helps the
business to grow.
The other needs of the customers are:
a) Sincerity and communication: Customers must be treated as humans and

not as numbers. Sincere contact with customers leaves a positive note to the
restaurant.
• Give a real greeting instead of a general “hello”.
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• Remember the names of regular guests and greet them with name when they
visit next time. Customers feel appreciated and acknowledged.
• Know the preferences of regular guests.
• Communicate with the customers online as per the need and occasion.
• Negative reviews and customer disputes must be attended directly and
decently.
b) Menu Flexibility
Customers generally have food preferences, especially people with allergies and
dietary restrictions. Have flexible menus to satisfy such customers.
• Must be ready and open to proposed alternatives to prove to customers that
their needs and preferences are given attention.
• Must be aware of potential allergens.
• Must have planned substitutes for items that may cause problems for customers.
• Have healthy alternatives such as fresh and organic items.
c) Knowledgeable staff members
Knowledgeable staff about fine dining, wine pairings, health information, seasonal
menu etc. is the key element of customer’s experience. Customers expect their
servers to have this information.
• Staff must be trained and updated about new menu items, dietary
requirements, seasonal menus etc.
• Ensure that the staffs are knowledged about all specials and cooking methods.
• Ensure that the staffs use technology to learn additional information about the
menus.
d) Quick payment
Customer always likes to pay and leave after the meal. Staff must respect the
customer time. Always have software that will split bills quickly.
e) Overall Experience
Good quality and economical food is vibrant to the restaurant experience. This will
help the customers to visit again.
2.3 Information on customer profile and preferences
The customer preference information must be collected from the meaningful data.
Understanding customer preference plays a vital role in selling a product or offering
a service as the customers defines the success of the business.
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Email, website and social networks are a big source to know about the customer
preference. Business intelligence software can be used to watch the customers and
their preferences. The customer surveys will also help to understand the customer
preferences.
Offline channels such as direct mail campaigns (sending brouchers or coupons to

the customers), cash registers or electronic payment terminals that collect data on
people walking through the door, organising events to publicise the business etc. will
also aid to know the customer preference.
Identifying the customers’ needs and preferences allows to shape the strategies and
methods that are used in the marketing plan. This aids in:
• Attracting a greater number of customers

• Setting the best price of the products
• Increasing the amount the customers spend
• Increasing the frequency of the customers spend
• Increasing the sales
• Enhancing the customer service.
2.4 Customer groups
Understanding the demographics of the target customers plays a vital role in the
success of any business. Demographic details not only help to provide the product
or service to the customers but also aids in pricing, packaging and promotion.
The first step of customer research is identifying the customers. The market research
will help to understand the potential customers. Customer research will also help to
develop a more detailed picture of customers and understand how to target them.
The key characteristics of the customer groups are:
2.4.1 Age range
Though customers of various ages may buy products or services, it is vital to know the
primary ages of the most common customers. For example, mothers with young
children and elderly people select the restaurants that serve bland and soft foods for
kids.
2.4.2 Buying power or income level
Education, income and occupation are often different attributes in the customer
profile. The general idea is to identify how educated the customer is, where the
customer works and how much they earn. High-end service providers often target
upper-income consumers that can afford and want their goods. Low-cost service
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providers usually target a lower-to-middle-class income consumers who focuses on

low price, affordability or great value.
2.4.3 Gender
Gender is the another important demographic trait in the customer profile while
looking at specific food groups, cuisine types and particular order trends. Women
spend three percent more, on average, per order than men. They also tend to order
more often than men on weekdays whereas men tend to order more during
weekends and late nights.
2.4.4 Social and cultural background
Race and ethnicity also plays a major role in customer profiles. Some ethnic-oriented
restaurants target customers with specific ethnic origins. A Japanese restaurant
would naturally target a customer of Japanese ethnicity who has a desire for certain
types of foods and products familiar to their native culture.
In order to understand the details for nutritional and dietary customs in any religion,
a brief orientation of the basis for such practices and laws is required. Many religious
customs and laws are traced to early concerns for health and safety in consuming
foods or liquids. Religious leaders developed rules about the consumption of foods
and drinks, and religious practices, restrictions, and laws evolved.
2.5 Food preferences
Food preference is defined as the way in which people choose from available items
based on the biological or economic conceptions. The factors that influence the
food preferences are:
Individual energy and nutrient needs
The amount of energy, carbohydrate, fat, protein, vitamins and minerals needed
differs between different age groups and between males and females. The amount
of energy required also depend on activity levels.
Health concerns
Diets which exclude or include many foods due to a person’s health concerns or for
medical reasons.
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Cultural or religious practices
Ethical and religious practices, such as avoiding meat, avoiding eggs, or limiting the
range of foods people eat.
Cost
Food cost is the important factor for people with low incomes. They prefer to eat at
home as it is cheaper than eating out or buying take-aways.
Food availability/seasonality
Most foods are grown in a particular season of the year and are called as seasonal
foods. Example: strawberries are harvested in summer. Seasonal foods cost low and
are of premium quality. Hence, many people prefer to buy seasonal foods.
Social considerations
Human welfare and animal welfare are a concern for many people. These welfares
provide fair trading, where growers or producers are paid a good minimum price to
cover their costs.
Environmental considerations
Scientific interventions in the food chain are also a concern for some people. Such
foods are labelled properly (Genetically modified or Organic) so that people may
decide to choose the foods. Such foods must be certified before purchase.
Advertising or sales information
Advertisements that encourage people to select foods often appear on the

television, internet, radio, posters, magazines and newspapers. This will assist people
in making healthier choices.
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3 Service styles
The service style of the restaurant defines the layout, menu, inventory, food prices
and décor of the restaurant. The selection of service style depends on the personal
preference, target customers and location. There are many different styles adopted
by the restaurants.
3.1 Table service
• Table service is the service wherein guests are seated at the table and order
from the menu. This style is considered as a category service style which consists
of English service, American service, Pre-plated service etc.
• The guests are greeted with an eye contact and a warm welcome.
• The server or waiter will address the guest by sir or madam and must assist them
in seating as per the number or any special requests.
• The menu be at first presented to women, then the host and other guests.
Special attention must be given to kids.
3.2 English service
• This service needs the food to be placed on large platters or in large bowls and
then delivered to the guest's table by waiters/servers.
• Once the host approves the food, it is passed to the guests around the table
and food is mostly served by themselves and sometimes by waiter on the
request.
• This service needs little dining area or space and has higher table turnover rate.
• The major disadvantage of this service is the difficulty to control the portion sizes
as the last guest may or may not get sufficient food if earlier guests had taken
more.
3.3 French service
• It is an elaborative, highly skilled and expensive type of service usually followed

by most of the fine dining restaurants.
• The chefs demonstrate the culinary skills in front of the guests.
• Plated entrees are served from the right and all others from the left.
• This style needs professional waiters to server the dishes carefully.
• The ambience and decor of the restaurant are luxurious.
3.4 Silver service
• This service is similar to French service and the only difference is that sterling
silverware is used to serve food and beverages.
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• As silver cutlery is expensive, most of the hotels and restaurants use Electroplated
Nickel Silver (EPNS). Only the speciality restaurants use silverware.
• The table is set with sterling silverware and the food is portioned into silverware
from the kitchen itself.
• Waiter will present the food to the host, and on approval starts servicing.
3.5 American service
• This is the most commonly used food and beverage service.

• The servers take orders from the guests in the dining area and the KOT (Kitchen
Order Ticket) is sent to the kitchen staff for preparation and the prepared food is
pre-plated in the kitchen itself by the chef.
• Pre-plated food is served to the guests by the server.
3.6 Russian service
• It is similar to that of the French service but faster and less expensive.
• The dishes are elaborately garnished and dressed.
• Whole food is presented to the host and on approval server starts portioning and
serving. One server is allotted for one table.
• This service is well suited for banquet service with the fixed menu.
3.7 Cart service / Guèridon service
• Partially cooked food from kitchen is brought to the service area in a Guèridon
trolley that has a portable heating unit for completing the cooking process.
Prepared food must be garnished as per the standards before serving.
• A wide variety of fish, meat and poultry is either cooked or flambéed in the
trolley.
• Food is served mostly by chefs and so it provides highly personalised guest
service.
• This service style has highest level of customer satisfaction as the dishes are
prepared and carved in their presence.
3.8 Snack bar service
• A tall stool is placed at the counter so that the guest can order and eat at the
counter itself.
• The guest can select the item from the menu card or can choose the food
directly from the display counter. Sometimes the items are displayed on the
blackboard or LCD monitor.
• This service is common in bar and pubs.
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3.9 Self service
• The guest is guided to help himself/herself. Food is either kept on a counter or

buffet.
• The customer picks up the required food from the counter or the buffet.
• Payment is done either before or after the food pickup.
3.10 Buffet service
• Buffet service displays food in counters or tables.

• Guests or customers help themselves to pick up the required quantity of food
they would like to eat.
• Plate and cutlery are placed at the starting of the buffet counter.
• Servers behind the counters will help the guests to serve the food from the
chafing dish to the plate.
• The staff must keep the buffet containers full.
• Some buffet setup like sit-down buffet serves the food to guests sitting at the
table.
• Some dishes are cooked on the spot.
• One buffet counter must serve 70 – 75 guests. Hence, the number of buffet
counters must be decided based on the number of guests.
• This service is recommended for large gathering or party.
3.11 Cafeteria service
• This service is commonly used in canteens, industries, staff cafeterias etc.

• This service will have a fixed menu with limited space and basic facilities. The
price may or may not be at a subsidised rate.
• This service is for authorised persons only and the guests will clear the used plates
by themselves.
3.12 Single point service
• This service is commonly used in fast food centres, takeaways, kiosk, drive
through etc.
• The guest will order and pay for the food and beverage over the counter and
will receive the order at the counter itself.
• Automated vending machines are also considered as single point service.
3.13 Room service
• This type of service is provided to guests in the guest room and must match
guest needs, expectations and hotels operations.
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• Guest will order the food from the room telephone, interactive television or
hotels mobile app.
• For small orders, room service tray is used and for large orders, a room service
trolley is used for serving.
3.14 Take away service
• This is similar to that of the single point service style.

• Take away orders are received from guests either over the counter, driveway,
telephone, website or mobile app.
• Payments are either made in advance via online payment or paid by cash at
the time of order pickup.
• Almost all fast food restaurants provide take away option.
• The automated vending machine is also used for this type of service.
3.15 Mobile pantries
• These are the mobile food preparation pantries installed in service elevators.
• Orders received form guests are passed on to the moving pantry, the food is
then prepared and served on the appropriate floor. Sometimes food is prepared
in the main kitchen and then send to the floor with a mini mobile pantry.
• Dining staff will pick up the food from the floor and serve to the guest room if
requested.
3.16 Blue plate service
• Blue plate service is commonly used for a small group of guests.

• The pre-plated meals with meat and veggies are served to guests on tables.
• The serving plate might also have divided ridges.
3.17 Automatic or conveyer belt service
• This service serves food to guest via a conveyer belt.

• In this service, the guest makes the order through the restaurants or hotels mobile
app after selecting the table or seat number.
• The food is then delivered as per the time schedule through a conveyer belt to
the table.
• Most sushi restaurants contains continues conveyer belt circulating around the
counter and the chef places the prepared dishes on the conveyer belt.
3.18 Robotic service
• This service is commonly found in casino's and luxury cruise liners.

• Guest orders the food on an interactive touch screen after scanning their room
key card.
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• The selections are then sent to the robotic arms processors, the order is then
prepared and placed on a small conveyor belt.
• Payment is automatically charged to the guest room account.
• This service is most commonly used to prepare cocktails and mock tails in bar.
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4 Plan the menu
4.1 Menu planning
Menu planning is the first step in planning and preparation of any dish. Daily
activities and scheduling variations may complicate the menu planning process.
Effective menu planning is satisfying in terms of time and money, especially given
how little effort it takes.
The factors involved in planning a menu are:
a) Availability of foods: A menu is primarily based on what can be bought in the

market. Always consider food in season. Think of available ingredients as
substitutes for that off-season. Availability is the basis for planning specific
appetizers.
b) Food habits of customers: This considers the culture and health of people living in
that vicinity (their customs, traditions, religion etc.). People will utilize a food
business where their needs and desires, as well as their beliefs and practices are
not violated in the food they eat.
c) Amount of money available: A food establishment has a definite budget

proposed for food preparation. Control in expenses and by operating within a
given budget allows the food manager to predict cost and at the same time
predict profit.
d) Amount of the time available: Food preparations must meet deadlines.

Customers have their own meal schedule to meet. Quick service is one important
asset of the ideal business. Food orders must be prepared in the shortest time
possible.
e) Type of customers: The customer factors that need to be considered are age,
sex, occupation, socio-economic status and nutritional needs (malnourished,
deficiencies like scurvy, diabetes etc.).
f) Environmental conditions: Specific dishes offered in food businesses must

consider the environmental temperatures. These are called the seasonal
offerings. Including local and seasonal products in the menu will reflect the time
and place of the event.
g) Occasions: Special occasions like festivals, birthdays, anniversaries etc. needs

special appetizers.
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h) Types of business: This includes the type of food establishments such as luxurious
hotels, restaurants, canteens, coffee shops etc.
i) Personnel and facilities available: This includes the number of employees needed
to work in different areas such as in preparation, cooking and serving. This also
includes the type of equipment available, kitchen facilities and kitchen layouts.
4.1.1 Standardized Recipe Cards
Standardized recipes are a key part of a well-managed food business. A

standardized recipe particularly explains the precise, measurable amount of
ingredients and the method of preparation needed to consistently produce a high-
quality product. The exact procedures, the type of equipment, and the quantity
and quality of ingredients are listed in the standardized recipe.
Standard Recipe Cards are used throughout the retail food service industry and they
make good sense for canteens too.
Benefits of Standardized Recipes:
• Product Quality - Provide consistent high-quality food items that have been
systematically tested and evaluated.
• Projected Portions and Yield - Precisely calculate the number of portions from
each recipe and clearly define serving size. Reduce unnecessary leftovers or
replacements because required quantity was prepared.
• Cost Control - Better management of purchasing and storage due to precise
amount of ingredients specified.
• Creativity - Standardized recipes encourages creativity in cooking. Chefs must
be encouraged to continuously develop new recipes. All modifications must to
be recorded so they can be repeated the next time the recipe is used.
A Standard Recipe Card (SRC) provides the information needed for food orders. An
SRC has the quantities and method that must be used to attain a certain volume
and quantity of food. The card also gives the cost of a standard prepared amount.
Portion numbers will vary depending on the type of business using the cards.
Knowing the price of each food portion is essential to decide the selling price of the
product.
Standard Recipe Cards:
• Eliminate guessing ingredients, quantities and cost.

• Eliminate wastage of commodities and labour.
• Preserve standards in ingredients, work methods/techniques, garnishing,
presentation and quality.
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• Economical through accurate measurement of products.

• Maintain correct costing and pricing.
• Support staff in giving precise instructions.
• Helps in staff training.
Sample SRC
4.2 Types/styles of menu
Menu is essential for all restaurants and it plays an important role in promoting the
business. A menu must not only provide information about the food available with
price but also must attract the customer to order the food. Menu must always be
attractive and informative.
Different restaurants have diverse approaches on serving and pricing the food. So,
restaurants follow different menu styles. The menus are classified based on the price,
meal schedules, meal times and by speciality.
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4.2.1 By price
4.2.1.1 À la carte menu
It is the free choice from the card or menu. It is a larger menu with great choice. The
dishes will be listed under the course headings and each dish will be priced
separately. À la carte menus are generally found in cafes, pubs, bistros and fast
food outlets.
À la carte pricing is best if the person is not a big eater, or has special dietary
requirements, or enjoy ordering several appetizers as an entire meal. Every item in
this menu comes with a short narration underneath to explain that dish.
À la carte menus are not suggested to cater for large parties because of their
complex preparation process, service and range of choices.
The food item is generally prepared only after the order. The large size of the menu
and unknown demand makes it difficult to control the wastage of the food. Staff
with greater skills is required to prepare the dishes which results in high labour costs.
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4.2.1.2 Table d'hôte menu
This is the meal divided into a set of courses with limited dishes. The price is fixed and
all dishes are usually ready at set time. The menu will be changed daily as per the
need. It is also named as set meal or set menu.
This menu is suited for larger groups such as conference centres, theme restaurants,
large group of tourists etc. This is common when large group sit at the same time
and are served fast.
Table d'hôte menu ensures minimum wastage and easy food operation. This is a
classified menu where in the items are prepared at the set time. Popular food items
are generally produced in this menu. The limited dishes reduce the labour cost.
Table d'hôte menus are usually offered for breakfast, lunch and dinner.
Pre-cooked food may deteriorate during service time which reduces customer
satisfaction. Hence, the food must be handled as per the regulations.
4.2.1.3 Buffet menu
The menu in which hot and cold dishes are served by chef or self-served. This style is
suitable for weddings, company functions, casual and social gathering. This is served
in buffet style. This menu is decided by the host.
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The host pre-determines the number of people attending, time of arrival, time of
departure, umber of courses and the menu. This menu is usually used in function
centers, convention centers, reception centers, tourist attractions etc.
Foods are arranged on tables and the guests usually move along the buffet line and
serve themselves. The best feature of buffet menu is that the customers can directly
view the food and can select dishes as per the choice and quantity. Buffets are
effective to serve large groups at once.
Sometimes, the pre-determined service does not run strictly on time. This may keep
the cooked food on hold which will deteriorate the quality of food.
4.2.2 By meal schedules
4.2.2.1 Cyclic menu
Cyclic menu is a series of menus that is repeated over a specific period of time. The
menu is different during each day and at the end of the cycle, the menu is
repeated.
Cyclic menus save time and allow the menu planners to offer a variety of menu
selections. Cyclic menus also regulate the costs in the number of ways. Cyclic menus
are usually used in canteens, hospitals, schools, universities, airlines, boarding homes
etc.
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Cyclic menus are also used in private clubs, cafes and restaurants wherein cyclic
style is used for entire menu or for some parts of the menu such as daily specials,
soups, desserts etc.
Cyclic menu provides structured variety and nutritionally balanced meals. The menu
gets standardized over the period of time and hence reduces preparation time,
labour costs, storage costs and food waste.
The cyclic menu planning will be complex and time taking. The repeat nature of the
menu will become tedious and boring for the staff.
4.2.2.2 Static menu
Static menu offers same dishes every day. These menus are usually used in
restaurants, fast food outlets, and institutions etc. for ease of preparation, to deliver
quality food and to meet good customer satisfaction. Static menu can be fixed or
changed as per the need such as every season, month or week.
Static menu is usually categorized into groups such as appetizers, soups, salads,
entrees, desserts etc. As the menu is fixed, the wastage and labour costs are
reduced.
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4.2.3 By meal times
• Breakfast menus: Offers variety of dishes for breakfast
• Lunch menus: Offers variety of dishes for lunch varying from light meals to
elaborate ones.
• Dinner menus: Offers variety of dishes for dinner and usually accomplished with
an alcoholic menu.
• Brunch menus: Menu designed for guests who wake up late and prefer to have
brunch (Breakfast + Lunch)
• Snack menus: Designed to supply quick dishes between large meals. Lightly
priced and small in portions.
4.2.4 By speciality
• Poolside menus: Provide small dishes in pool side area.
• Children’s menu: Designed for kids.
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• Diet menus: Planned for health-conscious persons.
• Wine menus: Offers different types of wines.
• Degustation menu
It is the French culinary term that refers to the series of small dishes served one after
the other. Degustation menu focusses on the gustatory system, the senses, culinary
art and good company.
The main aim of the chefs through degustation menu is to show off their skills.
Degustation menu generally consists of six or more dishes accompanied by a
matching wine.
• Ethnic menu
These are offered by restaurants that concentrate on a type of special cuisine.

Example: French, Chinese, Japanese, Indian etc. provide ethnic menus. This menu
translates the name of the items in to English, explain the ingredients and cooking
style and specify whether the dish is spicy or not.
Restaurants take care of the ambience of the restaurant to reflect the menu.
Kitchen staff must be trained to know how to use the ingredients and also the
cooking methods.
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• Seasonal menu
The main aim of the seasonal menu is to bring foods that are seasonal which are
readily available in abundance at their supreme quality, ripeness and flavour.
Seasonal ingredients helps to get the distinctive flavour to the dish and also makes it
economical.
4.3 Creating a menu
A well designed menu is essential for success of the restaurant. The basic guidelines
that need to be considered while creating the menu are:
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4.3.1 Design
Menu will communicate brand of the restaurant to customers. The colour and
overall tone of the menu must be consistent. Different techniques that can be
followed while designing a menu are use different typography, use different colours
and shades, add a box around the items, draw a box around group of items etc.
Make sure that the menu is shorter as the customers do not spend much time in
going through the menu.
4.3.2 Categorization
Menus can be categorized as per the common consumption i.e. breakfast, lunch
and dinner or as per the meals, appetizers and alcoholic drinks.
The menu categorized must meet the specific purpose and must focus on the
restaurant speciality. The categorization style and design must be easy for the
customers to navigate. Confusing menus will result in annoyed customers.
Menu matrix is the tool that helps to create the menu categories. Menu engineers
will assign menu into four categorize:
Stars: Indicates high profitability and high popularity. These items are
emphasized prominently on a menu.
Plow-Horses/Cash Cows: Indicates low profitability and high popularity. These
items are usually popular and customers don’t need to be reminded about.
Puzzles: Indicates high profitability and low popularity. These items must be
renamed or strongly emphasized on the menu.
Dogs/Duds: Indicates low profitability and low popularity. Instead of cutting
these items, think how best these items can be moved into another category
either by adjusting their preparation or cost.
4.3.3 Description
Good descriptions must accurately explain what the item is. It must describe the
ingredients and also express the feeling. The descriptions must be straight and not
too lengthy. If the descriptions are not on the menu, ensure that the staffs are well
aware about the item and can answer the customer as per the need. The
description must not exceed 10 words per item.
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4.3.4 Photos
Food photography is extremely challenging. The photo must increase the appeal of
the item which will attract more customers. Few restaurants believe that photos do
not increase the appeal and so they leave it for the customer’s imagination.
4.4 Constraints in developing a menu
4.4.1 Type of menu
Each food business need different types of menu such as à la carte, cyclic, table
d’hôte, buffet etc. based on the type of business and customers. The selected menu
can be altered as per the changing trends, customers and business expectations.
Meal styles are also of different types such as modern, classical, casual, international
and meals designed for nutrition and health. Defining the meal style is the starting
point for building the menu. It is vibrant to match the meal style to the menu type
and the establishment.
4.4.2 Customer profile
The more the information gathered about customer eating habits and preferences,
the better will be the decision making. The information can be gathered by:
• Asking customers for feedback about the meal.

• Reading updated industry magazines which will provide the latest eating trends
and preferences.
• Analyzing the eating habits of the customers.
• Making a record of the items that are sold well and the items that don’t.
4.4.3 Sales records
Sales records provide a valuable insight of the items that are sold well and the items
that don’t. Sales record can be collected either through a link with electronic cash
registers or through physical counts at the end of each service. Sales analysis records
can be done daily, weekly or monthly as per the business standards.
Analysing sales
Analysing sales over a period of time helps to identify the critical information such as:
• The average number of customers served per day/week/month.

• Dishes that are sold best or worst.
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• Percentage of customers that order each dish on the menu. This can be
achieved by the following formula:
• Percentage of customers that order entrée, main course, desserts etc.

• Percentage of customers that order number of courses either two or three or
more.
Sales information is useful in menu planning as it will identify the popular and non-
popular items, rush and free periods. This aids the business in ordering, rostering and
planning the menu.
4.4.4 Location
Location also plays a vital role in planning a menu. If the food business is close to
other similar food businesses, the menu must provide something unique that attract
the customers from the competitors.
Food business have a different target groups in the outback, rural areas, holiday
locations, suburbs and inner city. Customers in these areas have different spending
capacities and lifestyles which will affect how often they wish to dine out, how much
they can afford, atmosphere requirements and food preferences.
4.4.5 Pricing structure
The menu selected depends on the business type, customers and location. All these
factors in turn affects the pricing structure of the menu. A dining business in a city will
have noticeably higher expenses such as rents, rates etc. than a dining business in
suburban. Other factors which affects the pricing are interest rate rises, petrol prices,
inflation and world affairs (SARS, terrorism etc.).
4.4.6 Personnel
The skill level of the staff involved in preparing the dishes also decides the type of
menu and items that need to be included in the menu. This staff includes both the
kitchen staff and food service attendants. The staff must:
• Meet the standards required by the enterprise and the customers.

• Meet the target within the available timeframe.
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Menu designed must not be too simple which may lead to dissatisfied customers
and uninterested staff. Your aim should be the menu developed must match the skill
levels and capabilities of the staff and also must satisfy the customers.
4.4.7 Kitchen capabilities
The size of the kitchen and the available equipment also influence the menu. The
small and large fixed equipment must be identified by the staff. The equipment
selected must produce the required quality and quantity of the product within the
time frame. The equipment must not be used beyond its capacity as this will reduce
the quality of the food produced which will result in customer dissatisfaction.
4.4.8 Bench, cool room and storage space
Check the availability of enough bench, cool room and storage space before
planning a menu. Sufficient kitchen equipment and facilities will enable the staff to
produce good quality product within the time frame.
4.4.9 Seasonality
Seasonal availability of the products such as fruits, vegetables and some meats must
be considered while planning a menu. The availability of many seasonal products
increased greatly throughout the year because of the innovations in technology,
scientific breeding, cultivating programs, transport, storage and distribution
techniques.
Seasonal products are available at high price. Hence, the menu must be planned as
per the establishment and customer budget.
4.4.10 Accessibility of supplies
Supplies in major cities and metropolitan areas have more options when compared
with small country towns or the outback. The following must be considered while
planning a menu:
• Range of consistent and honest suppliers.

• Selection of commodities available.
• Quality aspects of the products that are ordered.
• Suitable packaging, transportation, preservation and storage systems.
4.4.11 Profitability
Food business is mostly run to generate a profit or to operate within a specified

budget. Hence, the menu must be designed to meet the business expectations. This
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can be achieved by planning a combination of high and low profit items on the
menu.
4.5 Menu balancing
Menu balance can be achieved by the use of wide range of ingredients, cooking
methods and a variety of condiments. The menu must be balanced overall.
Individual dishes must be exciting and interesting.
The customers may not be satisfied if the dish is cooked with the same cooking
method all the time and also when all dishes have same colour and texture.
Generally the menu must be balanced with respect to:
• colours
• ingredients
• flavours
• cooking methods
• textures
• Shapes.
Colours
The items that need to be included in the menu must not be of similar colours. Each
item that need to be presented on the plate such as main item, sauces,
accompaniments, vegetable etc. must be appealing. Avoid using similar colour
throughout the dish or across several dishes on the menu. The most common food
colour mistakes are:
• repetition of greens (salad greens, vegetables, sauces, garnishes).

• repetition of browns (golden cooking colour, cooked meats, accompaniments
and sauces).
Ingredient balance
Customers must be provided with wide variety of ingredients to create interest.

Repetition of major ingredients is acceptable in a multi-course traditional à la carte
menu as the customer has large variety of dishes to choose from. However, there
must not be any repetition in restricted menus such as table d’hôte and cyclic
menus.
Flavour balance
Balancing the flavour in the foods give variety of tastes such as spicy, chilli, sweet,
sour etc. The menu must be a combination of strong and mild flavours. This mixture
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of flavours is not always possible especially when planning menus with a cultural or
ethnic theme.
Cooking method balance
Combination of cooking methods add variety to the menu. Mix and match different
types of cooking methods such as boiling, poaching, steaming, stewing, braising,
roasting, baking, shallow-frying, deep-frying, grilling etc.
Kitchen staff must be knowledgeable about different cooking methods thus

providing nutritionally sound dish to customers within the given time frame.
Texture balance
A well balanced menu must give feel to the food when it enters the mouth and
when it is chewed. Customers must be provided with variety of textured foods to
avoid monotony. The food must be a combination of crunchy, soft and creamy
foods.
Shape balance
Variety of sizes and shapes of the components used in preparing the dish will add
the overall appeal. Few dishes can be stacked on top of each other to add height
and few can be spread out on the plate.
4.6 Menu descriptions
Selection of words is very important while describing the menu. The words when
properly used could attract the customers and increase the sales. At the same time
the customers may get confused when the words are not used properly.
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An ideal menu description is one that is short, explains dish, and ultimately attracts
the customer to order the dish. The most commonly used words while describing the
menu are as follows:
4.6.1 Tips in creatively writing a menu
a. Keep it short
Each item in the menu can be emphasized but the descriptions must be concise.
The words used must be vivid and tempting.
b. Ignite senses
Customers are driven by senses. Hence, sensory words such as fiery, savory, crispy
etc. can be used. Studies proved that the sales of the dishes were increased by
using tempting terminology.
c. Know the audience
Customer characteristics and demographics helps to enhance the specific menu

items. Menu descriptions must account for both gender preferences.
d. Placing the price
Few customers like the menu wherein the prices are neatly lined up and few like the
menu wherein prices are added after the dish description. Hence, knowing the
customer characteristics and demographics helps to place the pricing in the menu.
e. Design wisely
Menu is the restaurant’s brand. Hence, organize the menu into groups which helps
the customers to have a quick look on the items which they are looking for.
Speciality items can be emphasized with boxes, bold text and colours.
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4.6.2 Menu spelling and grammar
Menu with spelling mistakes or grammatical errors is awkward and convey wrong
message to the customers. Hence, pre-check the menu for spelling and
grammatical errors before going it for the print.
• Run the menu through a spell check on the computer and ensure that the menu
is set for Australian English.
• Food dictionaries available at book sellers and online can assist the menu
developers to avoid spell and grammatical errors.
• Always run the draft menu through the senior chefs and other business personnel
who are aware about the food terminology. Fresh set of eyes might pick up error
that are overlooked.
4.7 Menu design options
The medium used to display the menu helps the business to grow by attracting the
customers. The menu can be a:
• Computer generated printout positioned in a plastic wrap

• Creatively written blackboards or whiteboards
• Glossy shelter cards
• Printed mats or napkins
• Leather bound folders
• Clip boards
• LCD screens mounted on a wall
The menu design is generally finalized by group of members involving the business
owner, general manager, food and beverage manager, catering manager, chef
and marketing/promotions department.
The menus that are handed over to each customer must be designed to attract the
customers. Based on the budget, the menus can be designed and printed on-shore
or can be outsourced.
4.7.1 Paper stock
Menu printed on the paper or card has wide variety of options for types, colours and
qualities.
• The quality of the paper selected must be of good quality to withstand the high
level of handling by different customers for several months. Lamination is an
option to withstand the level of handling.
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• The paper selected must be economical, if the menu is intended to change

frequently.
• Off-white, creams and pastel paper stock with dark print is more effective when
compared with dark coloured paper stock.
• During in-house printing, ensure that the printer can cope with the paper
selected and must print all the expected colours with perfect hue.
4.7.2 Format
Formatted document will always catch an eye of the customer.
• Three to four course table d’hôte menus can be listed on a single sheet, whereas
an à la carte style menu needs several pages.
• Too big or too small menu is awkward to handle by the customers.
4.7.3 Layout
Perfect placing of items on the menu grabs the attention of the customer. Sufficient
place must be maintained around the margins, in-between the printed lines and
between each section on the menu. This avoids the menu to be crammed and
messy. Excess blank spaces also result a menu to look too sparse.
• Menus from other businesses must be examined to know about different layouts
and patterns followed by the competitors. This will also ensure to know the
customer preferences.
• Each customer have separate style to look and read the menu. Few read the
menu as a book and few scan the menu for the dish they like the most.
• Generally the customers read first few dishes carefully. Hence, place the best
dishes on top of the section which will benefit the business.
4.7.4 Font style
Font style i.e. the type, size and colour of the words used on the menu will catch the
eye of a customer. The customers may get irritated if the font style used is not
appropriate.
• Hand written menus convey a personalised service for the customers. However, it
is difficult to produce and sometimes the writing style may be difficult to
understand.
• Word processed menus are less personalised, more practical and easy to
produce in large numbers.
• Font style selected must be easy to read by all customers, especially those with
vision problems and elderly.
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• Always test the draft samples in dining area to ensure that they are properly
visible.
• The font style must match with the paper selected.
4.8 Menu evaluation
Menu evaluation is an important and on-going process of menu planning. The menu
planned must be reviewed prior its use and also after it has been served. The food
service manager can evaluate the menu in an efficient manner.
The use of checklists helps the food service manager to evaluate the menu in most
effective way. The evaluation checklists help the business to modify or change the
menu as per the customer requirement.
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4.9 Standard measures
The international system of units (SI) are the sole legal units of measurement used in
Australia. Chef must be aware of the standard measures while cooking any dish.
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*Australian tablespoon is 20 ml
Visit Weights and measures conversion table for more information on conversions.
4.10 Popularity of menu items
Providing high quality products and services will bring success to any business. The
popularity of the menu items can be checked by customer surveys, popularity index
and sales data. Menu analysis is to identify the profitability and popularity of menu
items and the approach to enhance the restaurant sales and success.
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Customer surveys
Customer surveys play a major role in assessing the menus for their popularity. The
customer survey will provide the valuable data for better menu improvements. The
customer surveys provide information about:
• Food quality
• Menu selection
• Menu pricing and value
• Waiting times
• Promptness of service
• Professionalism and friendliness of server(s)
• Server’s knowledge of menu
• Decor
• Restaurant location
• Overall restaurant experience
The most common questions that are included in customer survey are:
• How frequently you dine with us?

• Does the restaurant provided adequate selection of choices?
• What did you like about our food and service?
• What did you not like about our food and service?
• Were you satisfied with the speed of service?
• How would you rate the server’s ability?
• Does the restaurant had the family-friendly environment?
Popularity index
Popularity index is the ratio of the portions sold for a given menu item to the total
portion sales for all the menu items. Popularity index helps to know which menu items
are most popular. It helps the restaurant to determine which dishes must be kept
and which must be replaced. It also helps to determine the number of servings that
need to be prepared in an institutional setting.
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Sales data
Sales records are compiled by linking with an electronic cash registers or through
physical counts at the end of each service period. Analysing sales data also
determines which dish is having highest sales and which is having least sales. Sales
data can be used to:
• Optimise the menu.

• Determine slow and busy days, which aids to calculate the portions that need to
be prepared.
• Create better menu strategy
• Calculate the number of customers served each day/week/month.
• Figure out the maximum and minimum selling dishes on the menu.
• Determine the percentage of customers that order each dish on the menu.
• Determine the percentage of customers that order entree, main course, desserts,
coffee.
• Determine the percentage of customers that order one, two or three courses.
4.11 Naming convention and culinary terms for variety of cuisines
Cuisine is a specific set of cooking generally associated with specific culture or

religion. Each cuisine is prepared in a particular style. A cuisine is named after the
region or place of its origin. Some of the most popular Australian foods are:
• Roast lamb – Australian national dish. It is the lamb piece roasted with garlic,
rosemary and olive oil.
• Vegemite – Dark brown paste prepared from various vegetables, yeast extract
and spice additives.
• Fairy bread – White bread with butter sprinkled.
• Tim Tams – Chocolate biscuit.
• Meat pies – Australians have many different savoury pies stuffed with minced
meat, gravy, mushrooms, onions and cheese.
• Anzac cookies – ANZAC stands for Australian and New Zealand Army Corps.
Wives of the army corps prepared these cookies with coconut, golden syrup and
oats.
• Chicken parmigiana – It is a chicken schnitzel (chicken in breadcrumbs), topped
with tomato sause and cheese.
• Pavlova – Meringue cake base topped with whipped cream and fruit.
• Barbecues – A typical Australian barbecue is with sausages, burgers, steak, fresh
seafood, bread and barbecue sauce.
• Grilled Kangaroo – Available as steaks, burgers, saucages and many more.
• Barramundi – It is the aboriginal name for a large scale silver fish.
• Lamingtons – A square of sponge cake covered in chocolate sauce or raspberry
sauce covered in coconut.
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• Golden gaytime – Toffee and vanilla ice cream dipped in chocolate and
covered in biscuit pieces.
• Weet Bix – Budget friendly high fiber health biscuit.
• Neenish tart – Gelatine set cream filled delight, traditionally iced in pink/brown,
brown/white or white/pink combinations.
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5 Cost the menu
The challenge in pricing the menu is to balance the static cost of the item displayed
on the menu and the daily variations in the cost of ingredients used to prepare that
dish. The prices on the menu directly affects the restaurant profitability.
While determining the cost of food and drinks, the food cost for certain meal and
other expenses such as costs of energy, VAT, place rent, salaries with all contributions
etc. must be included. The food pricing can be done on own or by using restaurant
software.
The points that need to be measured while pricing the food are:
• Raw materials used for the preparation.

• Exact quantity of each ingredient used for the preparation.
• Quality of raw materials used for the preparation.
• The quantity of permissible drip loss (that occur during cleaning, cutting, cooling,
heating and storing) for certain foods.
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The general public insight that healthy foods are expensive is the key factor resulting
in poor dietary choices and diet-related health inequities. The factors the influence
the food prices at local, national and international levels are political, economic,
socio-cultural and environmental factors. Food prices may be operated by
governments with wide range of approaches. The three common pricing strategies
to increase the affordability of healthy foods are:
a) Taxes on unhealthy foods.

b) Exemption of tax on healthy foods.
c) Subsidies on healthy foods
In Australia, the basic healthy foods such as fruits, vegetables, bread, fresh meat,
milk and eggs are exempted from GST, which is applied at the rate of 10% to all
other foods and drinks. All the restaurants managers must follow the government
pricing strategies while pricing the special diets.
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5.1 Rules while pricing the menu
Know your market: It is important to know about both the existing and potential
target customers.
Know your competitors: Any business must be aware about the real competitors.
Knowing about the competitors is not just knowing the restaurants or hotels in the
near vicinity, it is also about knowing the successful establishments that are
attracting the customers.
To be more expensive: The food item can be costed high than the competitors
unless and until the product is justified. Many of the customers will be ready to
pay more when they are served a quality product.
Cost every dish: Every dish on the menu must be costed. This helps in building the
business revenue.
Contribution/profit margin: Contribution margin is the difference between the

cost of the item and the selling price. Contribution margin caters towards
covering fixed and variable costs.
The average profit margin in restaurant and catering business is 3 to 5%. The two
profit margins are gross profit margin and net profit margin.
Gross profit margin is the margin left after deducting the direct costs of goods sold
such as food costs and labor costs that are directly associated with preparation and
serving. Gross profit margin helps to evaluate the restaurant's efficiency and
profitability.
Net profit margin is the margin which includes all costs such as administrative
expenses, building costs, taxes and interest.
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5.2 A well-priced menu must be:
Consistent: The pricing of menu must be consistent. The cost can either be
rounded off to dollars or can end up with cents.
Avoid too many add-on charges: Try not to have too many add-on charges
such as application price, seasonal price etc.
Scatter expensive dishes: Expensive dishes must be scattered in the menu. As a
general rule cheaper dishes are at the top left as it is the place where customers
start to read.
Offer two or three set menu prices: This is the good customer incentive as it
permits them to forecast their expense.
Never be too cheap: Never under-price the food just to attract the customers.
Never work hard for less or no returns. Monitor the running costs and see that the
food, beverage and payroll costs make up to 60-70% of restaurant costs.
Never be too expensive: Over-pricing the food is another common mistake. It is
always a good idea to discuss the pricing of the food with the team working on
it.
5.3 Portion size and cooking
Portion size is the amount of food or drink one actually consumes in one sitting.
Generally, the serving size and portion size are confused. Serving size is the measured
amount of food one intended to be eaten in one sitting.
Portion of food differs from the type of event you’re having. Portion size also ensures
that guests will obtain uniformity when they order their favourite food. Irrespective of
the number of guests and type of food selected, sufficient amounts must be
prepared to satisfy the customers.
The achievement of big restaurant chains lies mostly in control of portion sizes. Each
portion should be the same size and weight. In this way, one can properly track food
costs and make practically perfect calculation when making final prices and profits.
Portion control in restaurants helps in controlling food costs, reduce waste and
maintain consistency. Portion control can be achieved by standard recipes, right
plating, right measurement, staff training and buying right.
5.4 Portion size and food cost
It is always very easy to just put a cost on the menu. However, it is not a decent idea
to just blindly put a cost on that menu. It is good to calculate the jeopardise and
lower the cost, because both restaurant benefits and the cost satisfaction of the
target group are equally important.
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The food costs will disturb the restaurant business entirely. Hence, it is vital to start
costing task from the start of the business.
How to calculate the cost of item prepared:
a) Write down the ingredients and their quantities used in preparing a particular
dish.
b) Fill the prices for all ingredients used in that dish.
c) Add it all together.
Considerations for costing a dish for a guest:
a) Direct costs: This comprises of what you pay directly for procuring food, the
portion size, and wastage
b) Indirect costs: This is the ‘value’ you are providing to your patrons. This broadly
includes things like hygiene, lighting, and ambiance
c) Overheads: These are the major frills you need to spend on including marketing,
social media, promotions, etc.
d) Labour expenses: An example of this would be a food item that involves more
time and skill to be cooked
e) Service costs: This will depend on the kind of restaurant you have
5.5 Food cost
Food costing is the vital indicator for assessing the profits in a restaurant.
5.5.1 Calculating food cost
Calculating food cost in business is based on the Uniform System of Accounts for
Restaurants. The food cost can be calculated by:
• Listing all food supplies (cost of raw ingredients or cost of all supplies) that are
received at the start of day/week/month. This can be done automatically by
software or can be listed as per the schedule.
• Add the price value of each item.
• Track all the purchases. Include the purchases that are made within the
week/month or the items purchased after beginning the inventory.
• Follow the same inventory as per the schedule (day/week/month). Always have
a back-up of all the inventories.
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• Add total food sales per period. Many restaurants generate the total sales
automatically.
• Calculate actual food cost for the week using the food cost formula.
Start with a specific time period for food cost analysis. The food costs and sales must
be generated during a set time period, either daily/weekly/monthly. Liquids such as
juices, coffee, soda supplies and other non-alcoholic beverage sales are also
included in food cost calculations. Different types of costs in a restaurant are:
Recipe cost: Cost of ingredients in a plate.

Recipe sale price: Price a customer pays for a plate.
Ideal food cost: Cost of ingredients used in all plates/total sales.
Ideal food cost per serving: Recipe cost/Recipe sale price.
Actual food cost: Ideal food cost - Inventory lost.
Actual food cost per serving: Ideal food cost per serving - Inventory lost per serving.
Basically, there are four aspects of food cost that must be individually calculated for
each operation:
5.5.1.1 Maximum allowable food cost
The maximum allowable food cost regulates the food cost percentage a business
needs to achieve set profits. It is calculated from the actual working budget of the
business. Select the appropriate accounting period and define the amounts for:
• Payroll related expenses such as salaries, wages, taxes and fringe benefit.
• Overhead expenses such as advertising, utilities, maintenance, other supplies
excluding food costs.
• Include target figure for profits before tax.
Convert the dollar value of the above mentioned areas to a percentage of the total
sales. Subtract the numbers from 100 to determine the maximum allowable food
cost percentage.
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Example:
5.5.1.2 Actual food cost
The actual food cost is the cost of the food consumed by the customers. This
excludes employee meals or spoilage. The actual food cost percentage appears on
the monthly income statement.
5.5.1.3 Potential food cost
Potential food cost is a theoretical or model percentage which specifies what the
food cost must be in a perfectly run restaurant. The most popular menu items will
influence the overall food cost percentage. To calculate the food cost percentage
of each dish:
• Multiply the food cost per item with the number of portions sold.
• Multiply the sales price by the number of portions sold.
45
• Add both columns and then multiply the total cost by 100 and divide it by the
total of the sales column.
5.5.1.4 Standard food cost
Management must adjust the potential food cost to include food waste and
spoilage that occurs during the preparation and also an allowance for
complimentary meals for employees and customers. An acceptable variance will
vary from two to three percentage points of food sales.
The standard food cost percentage is calculated by adding the variance

percentage to the potential food cost.
The difference between actual food cost and standard food cost shows the
inefficiency of the management that need to be controlled.
The standard food cost percentage is the bench mark that allows the management
to develop standard recipes that allows the food cost percentage of the given
menu to be no more than 40% of its selling price and gross profit percentage greater
than 60% of its selling price.
5.6 Food cost percentage
A chef must know whether the individual items are profitable or not using a recipe
cost calculator. Food cost percentage can be achieved by:
• Listing all food supplies that are received at the start of day/week/month. This
can be done automatically by a software or can be listed as per the schedule.
46
• Add the price value of each item.
• Track all the purchases. Include the purchases that are made within the
week/month or the items purchased after beginning the inventory.
• Follow the same inventory as per the schedule (day/week/month). Always have
a back-up of all the inventories.
• Add total food sales per period. Many restaurants generate the total sales
automatically.
• Calculate actual food cost for the week using the food cost formula.
Factors that influence the food cost percentage
• Incorrect opening or closing stocks or stock transfers.

• Incorrect purchases will affect the portion control and cost.
• Incorrect meal portioning.
• Incorrect measuring scales.
• Food waste or spoilage due to improper storage facilities.
• Inappropriate cashier training.
• Short deliveries or stock returns
• Theft of stock.
• Prices that are too low.
Importance of food cost percentage
Optimizing food cost percentage will help the business to maximise the profits which
in turn will inflate the bank account. A single item mispriced with few cents may lead
to a huge loss to the business.
• Have better control over the profitability of the restaurant.

• Have a better understanding of how each order impacts costs and profitability.
• Experiment intelligently with new prospective recipes.
To calculate the food cost percentage of an individual portion or menu item, you
simply add up the cost of the ingredient(s) and divide that result by the menu price.
47
5.7 Yield percentage
Yield in culinary terms is defined as the edible part of the food item or raw material
which is available after preparation or pre-preparation or cooking. Yield is the
measure that is obtained when an item is processed as per the standard methods.
Yield testing is important for a business:
• To determine the product pricing

• To set the purchase specifications
• To forecast the purchase quantities
• To establish the standard recipes and portion size
• To compare vendor prices and quality
• To monitor the usage of raw materials.
Yield percentage is the percentage of whole purchase unit of an item that is

available for portioning after required processing.
• Record the raw weight or purchased weight of an item.

• Process the raw material as per the specifications and record the waste or trim
weight
• Subtract the waste or trim weight from the actual raw weight. This gives the
edible product weight.
• Edible product weight is converted in to percentage to get the yield
percentage.
Calculating food cost using yield %
• Record the actual purchase cost

• Calculate the factor. The formula for calculating the factor is 100 ÷ yield % =
factor.
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• Calculate the edible product cost by using the formula factor x actual purchase
cost.
5.8 Butcher’s test
As the name specifies, it is mainly done for meats, fish and poultry. This test is used to
determine the standard yield and portion cost of the items before cooking. This test
is conducted under the supervision of chef and food controller. At first, the butcher
will cut the meat into respective parts and process them as per the standard portion
sizes. All the usable and non-usable parts are weighed and noted.
The weight of all parts must be approximately equal to the whole weight. The
difference if any is noted as the cutting loss. Thus, the standard portion size after
butchering is determined.
Butcher’s test is used to monitor the extent to which a dealer is adhering to the
specifications. The results of the butcher’s test can be used to price the menu. It is
also used to compare the cost of pre-portioned item purchased from the vendor to
the cost of the same item processed in the business. The labour cost must be
considered while comparing the costs.
Calculate the actual purchase cost (APC)
APC = Actual purchased weight (APW) x actual purchased price (APP) per kg
Example: 28 kg ÷ $1.30/kg = $36.40 (APC)
Fabricate the meat
Calculate the total trim weight and value
Fat trim weight x Market price per kg = Trim Value of fat

Bones trim weight x market price per kg = Trim Value of bones
Usable trim weight x market price per kg = Trim value of trim
Example: 3 kg fat x $0.10/kg = $0.30
4 kg bones x $0.30/kg = $1.20
5 kg usable trim x $1.30 = $6.50
12 kg Total Trim Weight = $8.00 Total trim value
Calculate the new fabricated weight
Actual purchase weight – Total trim weight = New fabricated weight (NFW)
Example: 28 kg APW – 12 kg Total Trim = 16 kg NFW
Calculate the new fabricated cost
49
APC – Total Trim Value = New Fabricated Cost (NFC)

Example: $36.40 – $8.00 = $22.40 NFC
Calculate the New Fabricated Price per Kilogram (NFPK)
NFC ÷ NFW = NFPK

Example: $28.40 ÷ 16 kg = $1.77 per kilogram (NFPK)
Calculate the Cost Factor (CF)
NFPK ÷ APP per Kg = Cost Factor (CF)

Example: $1.77 per kilogram ÷ $1.30 per Kg = $1.36 Cost Factor (CF)
Calculate the Yield Percentage
NFW ÷ APW = Yield Percentage

Example: 16 kg ÷ 28 kg = 57% Yield Percentage
Calculating food cost using yield %
• Record the actual purchase cost.

• Calculate the factor. The formula for calculating the factor is 100 ÷ yield % =
factor.
• Calculate the edible product cost by using the formula factor x actual purchase
cost.
50
6 Customer feedback
Successful restaurants cater to their customers. Loyal customers grow a business

faster than sales and marketing. Customer feedback also drives to customer
satisfaction. Satisfied customers in turn create customer loyalty.
Customer feedback is the information provided by customers about their satisfaction

level towards a product / service / general experience they had with a company.
Customer feedback helps to:
• Improve products and services

• Measure customer satisfaction
• Showcase value towards customer opinions
• Create best customer experience
• Improve customer retention
• Provide reliable source of information for other customers
• Take business decisions
• Adjust menus based on the need
Customer feedback can be done by feedback surveys, emails, customer contact

forms, supplier comments, customer interviews, social media, comment boxes,
formal questionnaires, feedback from websites etc.
51
A satisfied customer is usually a loyal customer. The customer feedback helps the
chef to adjust the menu as per the customer requirement. The customer feedback is
vital to understand how the food business is performing in accordance with the set
goals. These help the business to know where they are succeeding and where they
need to improve in order to meet the set dietary goals.
Apart from customers, the feedback from managers, peers, staff, supervisors and
suppliers play a vital role in improving the menus. Suppliers play the major role as
they move closely with the customers. Chefs can get the feedback on each dish
from peer, kitchen staff, suppliers, managers and other relevant staff.
Restaurant owners/managers must conduct regular meetings with suppliers, peers,

supervisors and other relevant staff to discuss about the customer experiences and
the best possible ideas from them must be considered. These meetings will
strengthen the relationship and enable the staff to feel more comfortable about
providing ideas and feedback to the management.
52
7 References
http://ijimt.org/papers/186-S10045.pdf
https://www.rrgconsulting.com/the-psychology-of-menu-design-reinvent-your-silent-
salesperson-to-increase-check-averages-and-guest-loyalty.html
https://aaronallen.com/blog/restaurant-menu-design-engineering/restaurant-menu-
design
https://pos.toasttab.com/blog/how-to-calculate-food-cost-percentage
https://www.posist.com/restaurant-times/resources/write-mouth-watering-menu-
descriptions-tempt-customers-order.html
https://www.wikihow.com/Calculate-Food-Cost
https://setupmyhotel.com/train-my-hotel-staff/f-and-b/591-types-of-f-b-service.html
https://thenextweb.com/entrepreneur/2015/05/20/9-ways-of-gathering-meaningful-
data-about-your-customers/
* All images are taken from google and clipart
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Plan and cost basic

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Elements and Performance Criteria

2.2. Choose menu items to meet customer preferences.

3.2. Calculate portion yields and costs from raw ingredients.

3.4. Price menu items to ensure maximum profitability.

4.3. Use descriptive writing to promote sale of menu items

5.3. Adjust menus based on feedback and profitability.

2.4.2 Buying power or income level.........................................................................................5

2.4.4 Social and cultural background .....................................................................................6

2.5 Food preferences......................................................................................................... 6

3 Service styles ................................................................................................... 8

4 Plan the menu .............................................................................................. 13

4.2 Types/styles of menu ................................................................................................. 15

4.2.2 By meal schedules .......................................................................................................... 18

4.2.3 By meal times ................................................................................................................... 20

4.2.4 By speciality ..................................................................................................................... 20

4.3 Creating a menu ........................................................................................................ 22

4.3.2 Categorization ................................................................................................................ 23

4.3.3 Description ....................................................................................................................... 23

4.4 Constraints in developing a menu ......................................................................... 24

4.4.2 Customer profile .............................................................................................................. 24

4.4.3 Sales records .................................................................................................................... 24

4.4.4 Location ............................................................................................................................ 25

4.4.5 Pricing structure ............................................................................................................... 25

4.4.6 Personnel .......................................................................................................................... 25

4.4.7 Kitchen capabilities ........................................................................................................ 26

4.4.8 Bench, cool room and storage space ....................................................................... 26

4.4.9 Seasonality ....................................................................................................................... 26

4.4.10 Accessibility of supplies .................................................................................................. 26

4.4.11 Profitability ........................................................................................................................ 26

4.5 Menu balancing ......................................................................................................... 27

4.6.2 Menu spelling and grammar ........................................................................................ 30

4.7 Menu design options ................................................................................................. 30

4.7.2 Format ............................................................................................................................... 31

4.7.3 Layout ............................................................................................................................... 31

4.7.4 Font style ........................................................................................................................... 31

4.8 Menu evaluation ........................................................................................................ 32

5 Cost the menu .............................................................................................. 39

5.6 Food cost percentage .............................................................................................. 46

6 Customer feedback .................................................................................... 51

• Attracting more customers

2.1 Strategies to identify customer needs

b) Learning customer needs and preferences

c) Building customer relationships

d) Service recovery and continuous improvement

2.2 Needs of the customer

The basic needs of the customer are:

e) Appreciation: Customers must be appreciated for providing the feedback. This

The other needs of the customers are:

a) Sincerity and communication: Customers must be treated as humans and

• Give a real greeting instead of a general “hello”.

c) Knowledgeable staff members

2.3 Information on customer profile and preferences

Offline channels such as direct mail campaigns (sending brouchers or coupons to

• Attracting a greater number of customers

2.4 Customer groups

2.4.1 Age range

2.4.2 Buying power or income level

providers usually target a lower-to-middle-class income consumers who focuses on

2.4.4 Social and cultural background

2.5 Food preferences