Menu analysis assumes that popular items have sales of 70% or more of the expected popularity. This was determined by the creators of menu engineering Kasavana and Smith. In the example, desserts would have to exceed 23.3% (70% of 33.3%) of dessert sales in order to be considered popular.
Dr. Professor Chef Colin Roche Thank you so much for your precious time and professional very valuable knowledge and experience you sharing with us 🙏🙏😘😘😊😊
Hi , Im confused of what all can be included in the food cost. Is it only the raw materials cost or should it include operational cost, labour costs, and all other costs to be born per menu item. If yes, please clear out what all parameters to be included while calculating food cost
Awesome video. However, how did chef Colin get the 70% for Q? Is it that we have only 3 items (30%) for Dessert so the rest of the menu would be equivalent to 70%?
Hi Errol, great question! The figure in Box Q is the percentage of an entire menu represented by each item on that menu, multiplied by 70 percent. In this example, there are three menu items (Apple pie, cheesecake and chocolate cake), however there could be any number of items. For example, it there are 16 items on the menu, each is one-sixteenth, or 6.25 percent, of the menu. Similarly, if there were 10 items on the menu, each would be one-tenth, or 10 percent, of the total. With our 3 items, each is 33.33%. The figure in Box Q is calculated by dividing one menu item (100%) by the total number of items on the menu (100/3 = 33.33%) and then multiplying the result by .7 (70 percent). Thus, 100/3 x .7 = 23.33%. In regards to your question, it is not 100% - 30%. The 70% represents 70 percent of the average number of menu items and is used to determine if an item sold more or less than the average. Some people often question why 100 percent of the average was not used (which in this case would be 33.33%) rather than 70 percent of it. The authors of Menu Engineering simply stated that using 70 percent of the average makes the results more realistic (therefore in this case our answer is 23.33%). I hope this helps?
Hi, menu engineering is usually included in most menu planning / cost control textbooks however searching for articles specific to the topic may be more helpful. The Webstaurantstore website usually has some great articles - www.webstaurantstore.com/article/89/menu-psychology-the-science-behind-menu-engineering.html
Sales mix (also called popularity index) refers to the percentage of customers who order a particular menu item compared to all items sold. To calculate a sales mix, take the number of each item sold and divide it by the total items sold. For example, say you sold a total of 250 appetizers on a Friday night and 25 of those were chicken wings. The sales mix for chicken wings would be 10% (25 / 250). Knowing this % can help you estimate how much of an item to prep and even purchase. For example, say Friday of the next week you expect to sell 180 appetizers based on your reservations book. 10% of 180 is 18 which is the estimated number of chicken wing orders you can expect to sell (and thus how much you should prep and purchase).
Hi, in general, the term menu engineering is used within the hospitality industry (specifically in the context of restaurants), but can be applied to any industry that displays a list of product or service offerings for consumer choice. Typically the goal with menu engineering is to maximize a firm's profitability by subconsciously encouraging customers to buy what you want them to buy, and discouraging purchase of items you don't want them to buy. The concept of menu engineering is attributed to work by Michael L. Kasavana and Donald I. Smith of Michigan State University. It is a methodology that analyzes the popularity and contribution margin of individual menu items and assigns a label to each of the individual menu offerings for the purpose of planning future marketing and management activities. Kasavana and Smith proposed classifying each menu item into one of four categories as determined by a two by two matrix of high and low popularity and above or below average contribution margin (Star, Plow Horse, Puzzle, or Dog). I hope this helps? Colin
Aloha Chef, I am trying to work on my menu merchandising for my Meal Prep business that I am trying to start, is there anyway I would be able to get a copy of the worksheets you used? Thank you for all that you do ! Mahalo, Christina @TreatMeKeto
In a Banquet kitchen we have 5 different party of 10 course meal which is on separate buffet counter according to their party client requirement , before the party is being started how do we arrive the pre cost budget for different 5 client parties and how do we arrive food cost separately for 5 client parties after the completion of party , in a single banquet kitchen
@@Varshini567 Pricing a banquet or catering menu is a bit more complicated than pricing a restaurant menu. There are more variables, such as party size, transportation costs, and having to overestimate food quantities. Fortunately, there's more flexibility in catering menu pricing methods. You can assign fixed fees, structure tiered prices based on number of guests, or create custom prices on a case-by-case basis. In addition, service fees and room charges cover certain costs without excessive markup on food. For more info, here is a link to an article: www.musthavemenus.com/guide/restaurant-catering/catering-menu-prices.html
Hi Ameen, are you asking about the menu price? If so, that would be set by how much one thinks their customers will pay based on demographics, competition, etc. If that wasn't your question, please send to me again, Colin
Amazing video chef! Just had a question, why did we multiply 70% to calculate the desired sales mix? I mean why only 70% and not any other number.
Menu analysis assumes that popular items have sales of 70% or more of the expected popularity. This was determined by the creators of menu engineering Kasavana and Smith. In the example, desserts would have to exceed 23.3% (70% of 33.3%) of dessert sales in order to be considered popular.
Very useful video. Highly recommended for the F&B class. Thanks, chef!
Thanks Sangwook, glad it was helpful!
I"m just been retired after 30 y having a restaurant in Rho -Greece. But your video "cutch me" and impressed me. Very nice for starters!
Thank you Stavros!
very well explained and so much helpful to use on my work. Thank u alot
You are welcome, I am glad it helped!
Chef Excellent video
Wonderful teaching
Thank you
Thanks Luke, I am glad you found the video helpful!
This was so helpful. Thank you for sharing.
Glad it was helpful!
Thank you for this video. Direct and easy to understand.
Thanks for the comment and I am glad you enjoyed the video!
Dr. Professor Chef Colin Roche Thank you so much for your precious time and professional very valuable knowledge and experience you sharing with us 🙏🙏😘😘😊😊
Hi , Im confused of what all can be included in the food cost.
Is it only the raw materials cost or should it include operational cost, labour costs, and all other costs to be born per menu item.
If yes, please clear out what all parameters to be included while calculating food cost
very good video. thank you!
Glad you liked it! Be sure to subscribe so you are notified when new videos are uploaded!
Very educative, Thank you
Your welcome, thanks for the positive comment. I just finished a couple of videos on the Income Statement which I will be posting soon!
Awesome video. However, how did chef Colin get the 70% for Q? Is it that we have only 3 items (30%) for Dessert so the rest of the menu would be equivalent to 70%?
Hi Errol, great question! The figure in Box Q is the percentage of an entire menu represented by each item on that menu, multiplied by 70 percent. In this example, there are three menu items (Apple pie, cheesecake and chocolate cake), however there could be any number of items. For example, it there are 16 items on the menu, each is one-sixteenth, or 6.25 percent, of the menu. Similarly, if there were 10 items on the menu, each would be one-tenth, or 10 percent, of the total. With our 3 items, each is 33.33%. The figure in Box Q is calculated by dividing one menu item (100%) by the total number of items on the menu (100/3 = 33.33%) and then multiplying the result by .7 (70 percent). Thus, 100/3 x .7 = 23.33%.
In regards to your question, it is not 100% - 30%. The 70% represents 70 percent of the average number of menu items and is used to determine if an item sold more or less than the average. Some people often question why 100 percent of the average was not used (which in this case would be 33.33%) rather than 70 percent of it. The authors of Menu Engineering simply stated that using 70 percent of the average makes the results more realistic (therefore in this case our answer is 23.33%).
I hope this helps?
Awesome video well explain,
Should every restaurant or fast-food owner knows them by heart to control p&L sheet.
Thanks,thanks and thanks again.
Thank you Benrabah, I am glad you liked it.
Could you recommend me a book about this topics? I want to write an article about Menu Engineering. Thank you so much, greet from Indonesia!
Hi, menu engineering is usually included in most menu planning / cost control textbooks however searching for articles specific to the topic may be more helpful. The Webstaurantstore website usually has some great articles - www.webstaurantstore.com/article/89/menu-psychology-the-science-behind-menu-engineering.html
prof im a little slow, I have 15 items on my appetizer list, could you tell me the formula for desired sales mix?
Sales mix (also called popularity index) refers to the percentage of customers who order a particular menu item compared to all items sold. To calculate a sales mix, take the number of each item sold and divide it by the total items sold. For example, say you sold a total of 250 appetizers on a Friday night and 25 of those were chicken wings. The sales mix for chicken wings would be 10% (25 / 250). Knowing this % can help you estimate how much of an item to prep and even purchase. For example, say Friday of the next week you expect to sell 180 appetizers based on your reservations book. 10% of 180 is 18 which is the estimated number of chicken wing orders you can expect to sell (and thus how much you should prep and purchase).
Could you tell me which study/research did you use? And where can I find it?
Hi, in general, the term menu engineering is used within the hospitality industry (specifically in the context of restaurants), but can be applied to any industry that displays a list of product or service offerings for consumer choice. Typically the goal with menu engineering is to maximize a firm's profitability by subconsciously encouraging customers to buy what you want them to buy, and discouraging purchase of items you don't want them to buy.
The concept of menu engineering is attributed to work by Michael L. Kasavana and Donald I. Smith of Michigan State University. It is a methodology that analyzes the popularity and contribution margin of individual menu items and assigns a label to each of the individual menu offerings for the purpose of planning future marketing and management activities. Kasavana and Smith proposed classifying each menu item into one of four categories as determined by a two by two matrix of high and low popularity and above or below average contribution margin (Star, Plow Horse, Puzzle, or Dog).
I hope this helps?
Colin
Aloha Chef,
I am trying to work on my menu merchandising for my Meal Prep business that I am trying to start, is there anyway I would be able to get a copy of the worksheets you used? Thank you for all that you do !
Mahalo,
Christina
@TreatMeKeto
Hi Christina, Sure I have posted a free copy of the template on my website chefroche.com. You can find it under the storefront tab
Chef please explain in a video how to do a banquet costing of a menu
Great idea Tara! I will start working on that.
In a Banquet kitchen we have 5 different party of 10 course meal which is on separate buffet counter according to their party client requirement , before the party is being started how do we arrive the pre cost budget for different 5 client parties and how do we arrive food cost separately for 5 client parties after the completion of party , in a single banquet kitchen
Chef please help me
@@Varshini567 Pricing a banquet or catering menu is a bit more complicated than pricing a restaurant menu. There are more variables, such as party size, transportation costs, and having to overestimate food quantities. Fortunately, there's more flexibility in catering menu pricing methods. You can assign fixed fees, structure tiered prices based on number of guests, or create custom prices on a case-by-case basis. In addition, service fees and room charges cover certain costs without excessive markup on food. For more info, here is a link to an article: www.musthavemenus.com/guide/restaurant-catering/catering-menu-prices.html
I know the food cost but how will put the perice in menu price
Hi Ameen, are you asking about the menu price? If so, that would be set by how much one thinks their customers will pay based on demographics, competition, etc.
If that wasn't your question, please send to me again, Colin