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MED201 Menu Engineering And Design

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MED201 Menu Engineering And Design

0 Download4 Pages / 917 Words

Course Code: MED201
University: Laureate International Universities

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United States

Questions:
a) Evaluate space, resources, and equipment required to effectively implement menus for food serviceb) Apply menu analysis and cost control as an effective management tool to determine menu items

Answer:
(menu engineering)
Menu engineering is the process by which it is examined where to place the food items, what to select as the menu of the restaurant, its presentation and cost control based on the number, category and demand of the customers. Menu engineering also considers the amount of time a customer spends on reading the menu and choosing from them. The role of menu engineering is highly important because it determines how much the restaurant will profit by plating the most profitable dish in front of the customers satisfying their appetite (Wansink & Love, 2014). It is also helpful in measuring the product mix of the restaurant and the profit contribution of each food item. The special benefits of the menu engineering system are as follows:
It helps to learn how the contribution of each menu influences the bottom line of the restaurant. It also supports to discover the strength of classifying different menu items based on their popularity and demand. It is important as it teaches how to increase the price of the dishes without any customer resistance. The restaurant management can learn how it affects the profit levels of the restaurant. It is quite apparent that many restaurants often suffer from declining Sales or stagnant sales, less customer arrival and low margins than the sales and customer traffic they used to experience. They gradually get used to and accept the low margins, sakes reduction and other problems.
However, it is also seen sometimes that the restaurants impose sudden price hike on the menu but consequently it leads to deeper erosion in the customer traffic. Men engineering can prove to be a game changer for these restaurants and increase their profitability. It has been surveyed that menu engineering can deliver up to 8% to 12 % in the initial year.  The process of menu engineering not only influences the profitability of the restaurant, but it also teaches better use of the LTOs or limited time offers (Fang  & Hsu, 2014). The beverage department and the desert menus also get inspired by menu engineering. Apart from all these benefits, during the time of high commodity swing, the restaurant that entertains menu engineering stay in control.
The way menu engineering works to increase the profitability is important and ingenious. First of all, it builds a profitability spreadsheet and enlists all the food items along with the pricing, food costs and sales history. In this list each menu can be categorized by popularity and profitability. Next, it assesses the menu items and re-constructs the recipes if necessary and where necessary to eliminate slow –moving items and modify the margins.  
Menu engineering prices the items consistently and appropriately. It helps to reduce unimportant price tiers and know the price adjustments according to the price sensitivity of the products in the market (Gottschall, Gultek & Heroux, 2018). It can result in long leaps in profitability. Finally, menu engineering reconfigures the menu design. A well-made menu design includes trendy fonts, attractive and updated logos and pictures with advanced technologies. Through the help of menu engineering the right menu item is placed on the right place of the menu along with suitable photos attached strategically.
Part B (Cost Control)
Stock control and stock taking in the hospitality sector is an important aspect because these play significant role in the daily operations of the business. An optimization in the stock can help to save the business expenses. Having less stock can cause loss of sales and on the other hand excessive amount of stock can lead to extra storage expenses. Therefore, a balance must be maintained. Stock taking is the process keeping the track of stock in the business conducted on monthly basis usually. These two processes collaboratively help to monitor the daily wastage o the unmanaged left over in the restaurant at the end of the day. Subsequently when the waste is measured and managed, the food costs are reduced due to having sufficient stock. There is a balance placed in the cost control.  For example, in a restaurant a customer never returns disappointed if they have proper stock of the item the customer is asking for. Another example suggests that regular stock taking helps to discover theft (if any) in the business (FAROOQUI, 2018). It keeps track of every goods and appliances.
The minimum amount of stock that a restaurant must hold is called the par level.  When a good is below the par level, it must be replenished as soon as possible. Having correct stock at the par level can increase the profitability of the business because they never run out of necessary food items (Eagle, 2018). It increases the number of new customers. The good reputation attracts new investors. The cash flow automatically increases and the restaurant faces heightened sales rates. 
Reference
Eagle, D. (2018). 7 steps to great restaurant inventory management and tracking. Retrieved from https://www.kounta.com/restaurant-inventory-management-tracking/
Fang, C. Y., & Hsu, F. S. (2014). An efficiency-based metafrontier approach to menu analysis. Journal of Hospitality & Tourism Research, 38(2), 199-221.
FAROOQUI, S. (2018). Barkeep, watch the over-pour: Apps can track liquor inventory, sales and theft. Retrieved from https://www.theglobeandmail.com/business/article-barkeep-watch-the-over-pour-apps-can-track-liquor-inventory-sales/
Gottschall, R., Gultek, M., & Heroux, L. (2018). Similarities and Differences in US and Canadian Restaurant Marketing Strategies: A Cross-Border Analysis of Menu Offerings. Journal of Tourism and Hospitality Management, 6(1), 1-8.
Wansink, B., & Love, K. (2014). Slim by design: Menu strategies for promoting high-margin, healthy foods. International Journal of Hospitality Management, 42, 137-143.

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