Chapter 2 Menu Planning as a Control Tool
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Finally, some operations may use time-based promotions. Early-bird specials
encourage customers to arrive before the busier, traditional mealtime. An early-bird
special might be offered to attract customers to a restaurant between 4:00 p.m. and
5:00 p.m. when business is slower. Discount coupons can entice customers to patronize
an establishment on a weeknight when volume is typically lower than on weekends.
Finally, operations use the “limited time offer” technique to offer a new menu item or
to give customers a special price on a current offering. The goal is to introduce an item
or to increase sales. These are frequently advertised with table tents or menu inserts.
While promotional pricing is commonly used, a manager needs to ensure that the
desired results are achieved. The goal of promotional pricing is to bring more guests
into the operation. If sales revenue and profi ts do not increase, the promotional pricing
initiative should be reevaluated or discontinued.
2.5-Times Price Spread
All of the prices on a menu must be within a range that consumers consider
acceptable. According to the 2.5-times price spread technique, the most expensive
menu item should never be more than 2.5 times the cost of the least-expensive item.
If a $0.79 hamburger is the lowest-priced item on a cafeteria menu, the highest-priced
item should not exceed $1.98. If the lowest-priced entrée in an upscale restaurant is
$16.00, the most expensive entrée should not exceed $40.00.
Reference Pricing
Most consumers compare prices when they
shop for goods and services. They do the same
when dining out. If the price for a menu item at
Operation A is lower than the price for the same
or a similar item at Operation B, the customer will
perceive the former as a good value. However, the
customer will expect the higher-priced item to be
of better quality and the service to be superior. If
an operation chooses to charge higher prices than
comparable establishments, they should anticipate
that customers may be more demanding.
Menu Descriptions
A menu description is a means of marketing
an item to the customer. Well-written descriptions
are enticing. The trick to writing them is to fi nd the
balance between too much and too little description.
Menu-item descriptions were less important in the
past. Consider two menus—one from the 1950s,
2-3, and a contemporary menu, 2-4. The 1950s menu
simply states each menu item. The contemporary
menu lists each menu item, along with a description
of how it is prepared and with what ingredients.
The following are a few suggestions for writing
effective descriptions:
• Ingredients. Include only the primary ingredients,
not the entire recipe.
Figure 2-3. This is an example of a typical menu from a
foodservice establishment in the 1950s.
©Denise Kappa/Shutterstock
Randy & Rosie’s
Salad with House Dressing
Broiled Filet Mignon
Baked Potato
Spinach
Cheesecake