...Menu Engineering Menu engineering is a menu analysis food pricing method that is used to determine which menu item requires re-pricing, featuring, eliminating, repositioning or re-costing (Schmidgall, 1997; Bell 2002). This approach incorporates both the profitability and the popularity of menu items with an emphasis on contribution margins (CM). The CM is established by subtracting the food costs from the menu item’s revenue. Menu engineering requires each menu’s item food cost, selling price, and quantity sold over a specific time period. The gross profit margin of each menu item is compared to an average gross profit margin of all menu items and then classified as high or low. Each menu item is also classified as high or low by its popularity. A menu mix percentage for the item is established by dividing the total count of the item in the total count of all menu items. The dividing point for establishing low or high popularity is calculated by multiplying 70% by 1/n, where n equals the number of competing menu items. The profitability and popularity classifications of each menu item results in four categories. A menu item with higher than average popularity and profitability is referred to as a Star, while an item with higher than average profitability and lower than average popularity is called a Puzzle. Menu items with lower than average profitability and higher than average popularity are called Plow Horses. Finally, menu items with lower than average profitability...
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...operational skills. Unit abstract This unit introduces learners to the practical aspects of food and beverage production and service. Because of the nature of their job, hospitality managers need to have basic levels of practical skills, enabling them to work effectively within different kitchen and restaurant environments. Managers may need to work in kitchen and restaurant environments to support operational staff in times of need or to establish themselves as credible team players. Learners will develop understanding of a range of food and beverage production and service systems. Learners will undertake an investigation of staffing implications for different systems and businesses to inform system comparisons. Learners will study menu planning and recipes suitable for different industry contexts. They will also investigate the importance of financial processes including, purchasing options, costing of raw materials and...
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...14 February, 2011 To Mr. Navid Ahsan Chowdhury Course Instructor Department of Tourism & Hospitality Management University of Dhaka. Subject: Submission of term paper Sir, We the student of BBA 1st batch, Department of Tourism & Hospitality Management, University of Dhaka. In reference to your order to prepare a term paper on Food, Beverage and Bar Management. We have prepared this report by using primary data from Atrium restaurant, Dhaka Regency and Escape from Shanghai and secondary data from our textbook, lecture sheets and internet. We, therefore, hope that you would consider our limitations, restrictions and grant this report and oblige thereby. Faithfully Yours, Members of De Faustine BBA-14th batch Department of Tourism & Hospitality Management University of Dhaka. ----------------------- Arefin Azam Rohan Executive Summary Hospitality industry is a huge industry, food and beverage is an important part of it. After completion of the assignment we have gathered much knowledge and especially first hand experiences. We have visited Dhaka Regency, Atrium Restaurant and Escape from the Shanghai for our field work. We discussed many branches of this industry such as the food and beverage systems of those outlets, the methods of production and services, staffing implications, different menus and factors to develop those, factors that affect the compilation of alcoholic beverage list. Here we also discussed what actions...
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...Ethnic Food Restaurant Business Plan 1.0 Executive Summary Our initial statement to Investors and Financial Lenders is a candid disclosure of the Zara Restaurant & Lounge business proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability of this business venture. Entrepreneurs have a tendency to paint the business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows: Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical experience with similar ventures, validation against National Restaurant industry cost averages, and analysis against local Atlanta market averages. We have taken a collective look at all figures to make solid business estimates. Our business concept was derived from detailed Market Analyses. Instead of building a business around a preconceived concept, we analysed the market findings and built a concept around our consumers. In other words, our business is built to service an...
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...are owned by independent franchisees. This opens the market for future restaurants in more places which equates to more profits for the company.. 4. Children targeting: McDonald’s successfully targets very young children through its offering of playgrounds on the premises, toys with its meals and advertisements on billboards and in commercials. The toys they select are chosen based on the most current trends in movies, television shows and games. 5. Locations: Not only are there locations on public streets but McDonald’s has partnered with Wal-Mart, airports and theme parks to take advantage of highly frequented places. Weaknesses: 1. Unhealthy food menu: Although McDonald’s tries to introduce healthier choices on its menu. The menu is largely formed of unhealthy meals and drinks. Such menu offerings prompt protests by organizations that fight obesity and hence decrease McDonald’s popularity. One of the most notable public outcries was the documentary "Supersize Me" by Morgan Spurlock in which he contributed our society’s obesity to McDonald's and...
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...VS Out Shoneyd By: Haleigh Keen ENC1101 Professor Alison Smith 27 February 2014 11:00am Out Shonyed McDonalds is one of the largest and best-known fast food restaurants in the world. Over the last thirty years, Mc Donald’s has been known as a leader in the fast food industry. Although there are a great number of fast food restaurants around the world, Mc Donald’s restaurant is famous for its burgers, fries, and service with a smile, but a new restaurant is making a name for itself, and their name is Shoney’s. My boyfriend and I go to Shoney’s often and we always enjoy the food and service. From the burgers all the way to the salads everything is fresh and smells great. As well as attending Shoney’s, we occasionally go through the drive thru of Mc Donald’s on a long trip or a “broke” day. When comparing Shoney and Mc Donald’s, you would be surprised to know that these restaurants are the same in many ways, but are different at the same time. Shoney gives you a feeling of being in an upscale restaurant with a family setting, with pictures on the wall, low playing music in the background; whereas in McDonald restaurant, there are golden arches painted on the wall for art, crazy light up tables, along with picture of a clown and no music playing in the restaurant...
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...McDonald's owns the right to own or lease any site and restaurant building to anyone who can afford it. The franchisee that purchases the rights has it for 20 years from McDonald's. They are also responsible for all the equipment and store fittings (McDonald's.com, 2008). The franchisee must comply with the standards that McDonald's has. That means the layout; brand, menus, design and administration of that restaurant must all fall within the standards. Each McDonald's must have the same type of menus and operating systems through its licensing agreement (McDonald’s.com, 2008). Now each menu is going to be different when it comes to operating in different countries. Being a franchisee comes with a lot of responsibility especially since you have to maintain a certain standard that McDonald’s expects. This standard though is what has fueled them to become as successful as they have. With each menu simple, comes a lot of repetitive training for its employees. They become fast and...
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...Strategy and Industry Analysis Threat of New Entrants: Cracker Barrel operates in an industry that is capital intensive, yet the barrier to entry in the restaurant industry is low. With low barrier of entry firms can enter at a high pace than other industries. Since 2007, over 1,099 full-service restaurants have entered the market. That is a 334% increase in little over five years. Even with the extensive legal barriers that the restaurant industry poses, these are not enough to detour new entrants. Cracker Barrel stays competitive in this environment by leveraging their superior distribution and leaning on their size to create a small edge through economies of scale. The later is not as lucrative within the restaurant industry, since the economic conditions have drove suppliers to diversify their buyer streams to hedge against a given firms collapse. This in turn, diminishes the ability of firms to create substantial economies of scale. Bargaining Power of Suppliers: The restaurant industry displays characteristics that support the notion of low bargaining power for suppliers. Cracker Barrel and other industry leaders purchase large amounts of commodities. With suppliers unable to differentiate themselves, their overall bargaining power is low. The only time suppliers have bargaining power in the restaurant industry is when a buy is dependent on a specific vendor for a high portion of their goods. Cracker Barrel falls into this category with its retail components...
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...Restaurant management involves many different aspects, including public relations, inventory, dealing with staff, customer service and the list goes on and on. Here are ten 10 things you should know about restaurant management. ! 1. The customer is always right. Always. The golden rule of business – the customer is always right. Even if you don’t agree with a customer’s complaint, how you handle it will determine if the customer comes back to your restaurant. Read more about restaurant customer service. 2. Restaurant job expectations should be clear to staff. From the wait staff to the house kitchen staff, each person needs to be the best at their job, in order for a restaurant managment to run smoothly. Read more about hiring restaurant staff. 3. Restaurants need advertising. A big part of restaurant management is advertising. Restaurant advertising has come a long way from newspaper ads and radio spots. Social networking offers a low to no cost way of promoting your restaurant. Read more about restaurant advertising on a budget. 4. Restaurant managment should watch cash flow closely.Cash flow is the amount of cash coming in versus the amount of cash going out of your business on a daily, weekly and monthly basis. If you don’t understand this basic concept of restaurant finances, you put yourself at great financial risk. Read more about restaurant cash flow. 5. There are many types of different restaurant promotions. Promotions can range from a nightly happy hour to prix...
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...Loltttttttttttttttttttttttttttttttt t tt tttt ttt tt The bargaining power of buyers is low in the industry as well. McDonald’s, Burger King, Wendy’s, among others, are highly competitive with their product pricing as it stands. Price floors are already being experimented with through dollar menus at McDonald’s and Burger King, and 99¢ menu at Wendy’s, at which some of these companies actually operate at a loss for each sale from this value menu. Therefore, with low prices already established in the industry, the bargaining power of buyers will be low because fast food restaurants already offer selections at various price points that cater to all budgets. Competition Restaurant industry is highly competitive industry. There are many small fast food businesses in theindustry who fight with each other to improve their customer base; McDonalds is not an exception to this.Since its establishment in 1940, MCD has excelled in the sector. Nevertheless, to stay in the competition,it started with McCafé. This helped the company to stay in the business as a major fastfood business.Another major step came out when McDonald started Breakfast to compete with the existing businessserving breakfast. Hence, this industry is extremely competitive and the MDC should be up to date withcustomer taste & preferences. Ease of Entry Although it is hard to enter the restaurant business, it is hard to establish a distinct brand name. There is ahigh cost of entry in the market and there is \ high...
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...RUNNING HEAD: Menu of Changes at Applebee’s Menu of Changes at Applebee’s Marketing Management Situational Analysis While their menu changes from region to region to accommodate the tastes of people in different parts of the country, it is still a mostly "American" menu with large portions. Usually the menu consists of such items as spinach and artichoke dip, fried chicken, different types of steaks, salads, as well as hamburgers, French fries, ice cream and apple pie. These are different types of foods from those offered by Chili's, and they promote more of a small town family feeling as compared to Chili's party mood. Atmosphere is another characteristic that shows how Applebee's is a small town restaurant and Chili's is a party restaurant. For example, it can be seen that Applebee's strives to be a hometown restaurant bar and grill. Applebee's likes to call itself a "neighborhood" place to go. In order to enhance the small town neighborhood image, Applebee's uses light pinewoods for trim for the tables, bench seats, and chairs. The booths are roomy to accommodate lots of people. Free balloons are offered to kids in the restaurant as well, further promoting the neighborhood feel. In general it can be said that Applebee's atmosphere is that of a small town, neighborhood, and family restaurant. External Environmental Analysis (outside the organization) Economic According to restaurant.org, restaurant-industry sales are forecast to advance 3.9 percent in 2010...
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...Unlike other restaurants located in highly commercial and congested areas, Crimson Chakra which is located in a quiet residential area in Adyar can startle you with almost everything it offers. A beautiful Kerala style house with a good layout of chairs, an alley of seating facing the waddle pool with some falls and a quiet private dining area all put together in one of the best ambiances among restaurants in Chennai is what makes up Crimson Chakra. INNOVATIVE COMPONENTS OF THE RESTAURANT 1) CANDLE ROOM 2) PET ZONE 3) WATER TABLE 4) GAMING ZONE FOR KIDS 5) SPECIAL DISCOUNTS FOR WOMEN GROUPS 6) BAKERY ESPECIALLY FOR DESSERTS 1) CANDLE ROOM What sets apart Crimson Chakra from most of its other competitors is most definitely the “Candle Room” - definitely one of the most innovative components of the restaurant. The Candle Room, as the name suggests is a candle lit room only for couples for a special afternoon or evening filled with romance. The candle room comes with its own waiter who is at your beck and call and can be summoned only with a buzzer. Utmost privacy with more than 50 candles lit, delicious food and lovely music playing in the background will definitely transport anyone to a world full of beauty and love. This room comes at a very reasonable rate of Rs. 3000 inclusive of lunch or dinner for two. 2) PET ZONE Definitely one of the most fascinating and innovative ideas a restaurant could come up with, Crimson Chakra is one of the...
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...Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not? Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both categories. Besides, with the good timing which became the first mover to this new category also led itself to this favorable position. This new category has made Panera Bread’s position not only unique but also contributed to its success. Panera Bread did a lot of things to distinguish itself from its rivals such as adding specialty food, different menus, catering service, new time suggesting of specialty food and providing inviting neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week systemwide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique...
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...1. Introduction In the public debate over obesity it is often assumed the widespread availability of fast food restaurants is an important determinant of obesity rates. Policy makers in several cities have responded by restricting the availability or content of fast food, or by requiring posting of the caloric content of the meals (Abdollah, 2007; Mcbride, 2008; Mair et al. 2005). But the evidence linking fast food and obesity is not strong. Much of it is based on correlational studies in small data sets. In this paper we seek to identify the causal effect of increases in the supply of fast food restaurants on obesity rates. Specifically, using a detailed dataset on the exact geographical location of restaurants, we ask how proximity to fast food affects the obesity rates of over 3 million school children and the weight gain of 3 million pregnant women. For school children, we observe obesity rates for 9th graders in California over several years, and we are therefore able to estimate cross-sectional as well as fixed effects models that control for characteristics of schools and neighborhoods. In the fixed effects models we focus on the openings of new restaurants and compare the difference in the change over time in obesity rates between schools that are located .1 miles from a new fast food restaurant and schools that are located .25 miles or more from a new fast food restaurant. For mothers, we employ the information on weight gain during pregnancy reported in the Vital Statistics...
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...PESTEL analysis | Political | | | | Economic | | | | | | Social | | Market overview Busier and higher- tempo lifestyles, regular marketing promotions, menu updates and the higher number of tourists contributed to this strong performance. Besides, players stepped up their delivery services to tap into the potential for consumption at home and in the office. For example, Tsui Wah launched Tsui Wah Delivery soon after listing on the Hong Kong Stock Exchange in 2013. Hong Kong consumers showed strong support for fast food chains selling Asian ‘comfort food’. With rising awareness of the harms of over-consuming Western fast food, such as burgers and battered chicken and fish, Hong Kong residents lapped up the offerings of Asian ‘traditional’ or ‘comfort food’. These include chains such as Fairwood, Maxim’s and Café de Coral, some of which feature “No-MSG” (monosodium glutamate) options in their menus. The restaurant trade has gained some momentum, helped by a growth in visitor arrivals in2000. Hong Kong remains one of the most densely packed countries in terms of retaurants with approximately one restaurant for every 700 citizens. Consumer characteristic be they eating habits, lifestyle changes, tourism spending or legislative issues. In Hong Kong is a city in which speed and efficiency are expected and demanded. This fast pace has also infected the food scene, most notably in Hong Kong-style teahouses and local fast food chains, which can serve Chinese...
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