Engineering

From
Menus
By: Paulo Oliveira

The menu is the vital tool for any restaurant. Firstly because
influence on the customer's first impressions, creating expectations of the food and
drinks that the restaurant aims to offer, as it gives a perspective of
environment and atmosphere of the restaurant. However, to develop a well ...
to succeed it is necessary to deeply understand tastes and trends.
target audience's gastronomic preferences.

Many hotel directors, food and beverage directors, and managers of

restoration and beverage spaces still do not truly understand the
menu power as a sales tool. Currently, many analyses are being done
of menu engineering, but this information is not properly used to create and
develop strategies. This data is for informational purposes only and not for
strategic. We live in the era of information and knowledge, but if there is no
its practical use in our day-to-day, all knowledge and information are useless.
Even in schools, food and beverage management data is heavily studied.
All students must know the calculations and analyze the results obtained, but not
there is a strategic thought for the practical use of these analyses and their application
this information. And by being dissatisfied with it, I started to study the subject and
deepen my knowledge in this subject that I now share with you.

The main purpose of the menu is to attract customers' attention to certain

delicacies and increase the desire for them, retain customers and ensure that they
I'm back. Contrary to what many may think, the menu does not serve only to
create a commercial transaction, the menu is a tool that also serves to
engage the customer with the restaurant and provide a relationship between both.
The menu is an extension of the restaurant, for this it is necessary that it be
agreement with the restaurant design, color scheme, fonts, concept of
restaurant and the same approach to the customer. This whole set will define
the customer experience with the restaurant.

According to a Gallup study, a few years ago, it concluded that the consumer takes
109 seconds to outline your choices. Having a menu that is too extensive, or
presented on many pages will make customer choices difficult, as it affects their
decision-making process. On the other hand, it leads to more stock for delicacies that it has.
low turnover, or there are fewer
profitable, stock this subject to pass from
validity and waste resources.

Contrary to what many assume, the

the customer does not read the menu page by page,
he does a general 'scan' of what matters.
illustration1 represents the behavior
consumer's visual when it is given to him
menu presented.
Illustration 1: sequence of visual behavior in the menu
 According to illustration 1, the consumer's focus follows a sequence, 1 corner
upper right where the main dishes are generally located, 2 corner
top left, 3 bottom left corner and 4 top right corner again, and
finally 5 bottom right.

The use of visual attractions will make the customer

pay more attention to what is really intended.
Through a differentiated presentation these
sections are likely to create more desire and greater
desire to acquire. Let's look at the following example: if
in a certain menu, we check if it is
selling few tickets, may highlight this area, or
just one or two entries, presenting a type of
larger font, different color, inside a box or even
with suggestive images. With this strategy, sales
of input will increase, thus representing a
increase in a revenue that would not be possible to
concretize in another way. An example of this is the illustration
2. Note that in the presented menu we are
redirect the customer's attention to certain areas that
represent the greatest interest in sale.
Illustration 2: example menu

This article will now proceed with a deeper and scrutinized approach.
to truly understand how important information and data collection are
to improve the performance of the menus and in turn generate more revenue and also
how to use this information to build a menu with greater potential
sales.

Menu engineering is essential for the success of any restaurant.

using this methodology means that we could be wasting around 10% to
30% of the possible revenue. In such a competitive market, with fixed cost structures.
high value and with a huge market elasticity, each euro takes on a
enormous relevance for the sustainability and profitability of each unit of
restoration. It is a process that I divide into 3 steps that I will present.

Step 1:
Calculate the cost price of each item on the menu;

Step 2:
Categorize the menu items according to their levels of popularity.
profitability and popularity;

Step 3:
Create your menu;
 Step 1:

Calculate the cost price of each menu item

It is about covering the cost of each ingredient to determine the exact cost of each.
menu item. It should have all values accounted for down to the cent, but be careful
you should not include the cost of labor, because the process only measures the level of
profitability of each item on the menu, that is, it is only about the costs of the ingredients
the cost of each delicacy. There are few restaurants that actually cover the cost of each
menu item. This step is very important because it will influence the entire process of
menu engineering, to obtain the most accurate information possible it is necessary that
we take exact and rigorous values, at this point, as a menu item is paid for
wrongly may mean wasting money. It has to be extremely
demanding, as it is a crucial step to determine profitability of
each delicacy and establish the most correct price taking into account profitability and the
acceptance of the same by the client.

Step 2:
Categorize the menu items according to their levels of popularity and
profitability and popularity
Categorizing the menu items allows us to understand where we should apply
menu engineering efforts to make the most of its efficiency,
this process is divided into 3 parts:

a) Divide the menu into 'Categories' and 'Sections';

b) Distribute each menu item into the 4 quadrants of the graph;

c) Determine the evolution of the menu according to the dispersion of items on the graph.

a) Divide the menu into 'Categories' and 'Sections'

When we refer to 'Category' we are referring to the way we divide the menu, the
the most common categories are Appetizers, Main Dishes, Desserts, Beverages, etc.
menu categorization is directly linked to how the menu
it is structured. Having said that, it is necessary to divide the categories into sections. This means
group items within the same category, that is, it implies for example to group the
Entries in soups and salads. The aim of this operation is to separate the items on the menu.
that can be considered direct alternatives within the same category.

Let's see the example:

ENTRIES

SOUPS (Vegetable Cream, Pumpkin Soup; Seafood Cream)

SALADS (Caesar Salad, Waldorf Salad..)
SECTION 3 SHELLFISH (Garlic Shrimp, Clams Bulhão Pato, Oysters with
Natural
The entries consist of several items, however some of these items may be
replaced by other competitor's sayings, in this example the pumpkin cream is
an item directly competing with the vegetable cream, but we can no longer say
the same if we compare it to a salad. Hence, it is so important to make this
separation of Categories and Sections. In this step, we then start to introduce
all the dishes on an Excel sheet, taking into account their grouping in
Categories and Sections.

Illustration 3: Example of menu engineering map

Explaining illustration 3, we can verify:

A: Column with the description of each item on the menu, they should be in
categories, what is not explicit on this map.

B: sales volume of each item sold during the predefined period.

C: Popularity of each menu item in %, calculated as follows: Number

sold of each item/ Total Items Sold times 100, that is;

Popularity of Item#n = (B item#n /N) x100

Calculation of Item #1 = (100/925)X100 = 10.8%

D: Insert the unit cost of each item calculated previously;

E: Registration of the selling price of each item on the menu;

F: Recipe for each menu item. It is calculated by subtracting the cost of each item from its
respective selling price.

Item#n Recipe = Selling Price - Cost Price

Calculation of Item #1 = 4.5 - 1.25 = 3.25
In this column, the total cost for each sold item on the menu is calculated for the
period under study, let's see the calculation method.

Total Cost of Item#n = Unit Cost Item#n X sales volume =

That is,
Column D X Column B
Total Cost of Item#1 = 1.25x100 = 125

In this column, the total revenue is calculated for each menu item sold.
period under study, let us see the calculation method.

Total Revenue of Item #n = Unit Price of Item #n X sales volume =

That is to say,

Column E X Column B
Total Revenue of Item#1 = 4.5x100 = 450

Here are presented the profits of each menu item subtracting the cost.
recipe for each of them

Profit of Item#n = Total Revenue of Item#n - Total Cost of Item#n

That is to say

Column H–Column G
Profit of Item#1 = 450-125= 325

In this column, the profitability of each item is determined; the profitability is high.
It will be high if there is a profit above the average of the items, and it will be low if there is a
profit lower than the average of the items.

In this column, the popularity of each item is determined; popularity is high if

it has a quantity of sales above the average of the items (High), and it will be low if
is a quantity of sales lower than the average of the items (Low).

S: After the introduction of all the information, each menu item is classified, having
in account the explanation presented in the following paragraph.

Is there still any additional information to better help understand the

menu behavior.

I = total cost of all items sold in the period;

J = total revenue from all items sold in the period;

Profit from all items sold in the period;

K=( I/J = Food Cost) It is the percentage representation of the weight of the item costs
sold in relation to the selling price.

O = (M/N = Average profit of the items sold).

 b) Distribute each menu item into the 4 quadrants of the graph

We focused on the data related to the profitability and popularity of a certain

periods, (from the last month for example), and we distributed them across the four quadrants all the
menu items, taking into account the following classes.

STARS - High Profitability and High Popularity

PLOW-HORSES – Low Profitability and High Popularity (also known as

as presented in illustration 3.)

PUZZLES – High Profitability and Low Popularity (is also referred to as

Challenge, as presented in illustration 3)

DOGS–Low Profitability and Low Popularity

Illustration 4: Chart for analysis of dispersion of menu items

c) Determine the evolution of the menu according to the dispersion of the items in the graph.

We should use the information obtained in step b) to determine how to manage each
item of the letter. In the first point, we analyze the items with the highest and lowest
popularity and profitability in categories and then in sections. Through the analysis
from various categories, we can help decide where to position each section in
due place in the menu. For example, if the main dishes Stars are the
seafood, we must join efforts to sell tickets also with seafood.
By analyzing each section, it allows you to place and promote the items.
from the menu of each section. That is, we must always make the best decisions with
the obtained results, having in each the position of each item in the quadrants of
graph. Let's take a look at each quadrant individually, in order to build the
best strategies to maximize the profitability of the menu.

STARS - The more items found in this quadrant, the better the potential of the
menu

PLOW-HORSES/WORKHORSES - You should seek to achieve greater profitability from the items.
from this quadrant, soups and salads tend to be in this quadrant, you should
only include the essential items in the menu, and you may make small adjustments to the
recipes for these items to allow for the increase of your profitability;

PUZZLES/CHALLENGE –For the menu items located in this quadrant,

we must ensure that employees promote these items, employees should
still certify that customers like these items. Sometimes a small decrease
Prices can increase sales volume and boost overall revenue.
We still need to readjust these items and redo them.
DOGS - Removing items from this quadrant may be an option, however it does not
we can omit from all items in this quadrant. For these items, the most appropriate
it will not give them much emphasis or prominence. Just list the item and the price. Not
it will require a lot of effort to sell or promote these items.

At this stage, where we already know the performance of each Category, of each
Section and each Item of the menu, and since we have already analyzed the possible strategies
for each of them, we can now move on to the next phase, The phase of construction of
menu design.

Step 3:
The construction of the Menu

This step consists of building the menu in order to get the most out of it.
potential based on the information collected in the previous steps, in order to
highlight the intended dishes but it is much more than that.

When building a menu, it is necessary to understand who the target customer or customers are.
this requires the existence of an information management that allows identifying the
standards of the main market segments. This information management should
identify

What are the target segments?

What are the motivations that lead the customer to go to the restaurant;
In what way is the menu read (in full or just an overview);

After identifying the target audience and having the menu items properly
categorized is the time to define the menu design. After the collection of
information and understand the consumption patterns of the identified segments,
we can build the menu with the most suitable techniques to be able to take it out
maximum potential of the menu.

Let's look at some techniques.

Use the visual component to highlight a menu item

Wrap a certain item in a box, change the font type or color, or

adding visual content will spark greater interest in
client's part. However, this technique requires more space on the menu and is
it is necessary to be attentive not to have too many highlighted items. Just like
the use of too many photographs or images should be avoided, risking
to create greater indecision in the customer and decrease their perception of quality.

Place the price right after each item

There is a tendency for prices on menus to always be aligned to the right.

This price alignment creates greater attention to the price in the customer.
 that in the menu items, leading the customer to choose an item by the price more
lower and not by the item of greater pleasure.
The price should be right after the item's description in the menu, using
extremely the same text formatting and without the addition of the symbol €.
in addition to diminishing the customer's attention to price, it will also in a way
unconsciously relativize the price factor.

Use item descriptions as an advantage

Describing a black person gives them more importance, it's not enough to have a price.
It is elevated if we do not enhance the item with a correct description.
However, one must know how to highlight a certain item on the menu with
a description. Identifying the ingredients or method of preparation is not
enough to evoke the customer's attention. Insert the item into a story that
awaken the customer's attention, for example the story of your existence,
reference to texture, juiciness, aromas, or an expression that awakens
Attention, to humanize an item is to elevate its quality and increase the chances.
to be best-selling.

Use science to properly organize each item in each section.

Placing each added item in each section of the menu is the basis of
essential for a good organization of the letter. In the case of a section of
entries with 6 items arranged vertically, the order in which they are
The items in the menu do not correspond to the order in which they are arranged in the menu.

The first items acquire the perception of greater importance, however it is the
the last item of each section that receives the most attention from the customer,
The items that are immediately above this are the most ignored.

Each section should consist of a maximum of 5 to 7 items arranged vertically, if

if there are too many items, the customer will become more indecisive and confused and will opt for

tendentially by the item that is most familiar or conventional to it, being this
the most common types of items on restaurant menus are not the most
profitable.

Use the Menu Configuration as an Advantage

The menu cards can consist of just one panel, two panels,
3 panels or multiple panels, and they should be suitable for the intended concept.
The way the client reacts to the number of panels varies depending on the type.
from the restaurant, on the other hand, has direct interference in engineering
menus and its capacity to generate revenue.

Let's take a look at various menu settings:

MENU WITH 1 PANEL: it is a format that allows the customer a choice

quick, tends not to ask for many items, included in a low revenue concept
per customer. This setup leads to a more informal, light type of meal,
quick, economical and does not fit a complete dining experience.
 MENU WITH 2 PANELS: It is the format with the best use, as it is easy to read, interpret
and to seek necessary information quickly. It is a format that
induce the customer to a full meal.

MENU WITH 3 PANELS: It is a good choice for restaurants that have a

longer letter, and 2 panels are not enough, although it is a more
convenient.

MENU WITH MULTIPLE PANELS: The more panels the menu has, the smaller it is.
control that one has over it. Because besides needing more subjects-
cousins and always fresh, will invoke greater difficulty for the client in the process of
choice. Extensive menus also reduce the ability to influence the
customer choice.

Take Advantage of Visual Movement Patterns

The customer's gaze tends to focus more on certain areas than others.
depending on the number of panels. Recognize the movement patterns
visual allows to identify the customer's gaze and attention behavior to
specific areas of the menu. This way we can build the menu
placing each item in the ideal location to receive more or less
attention, as intended.

Let's look at the areas of greatest and least attention in the menu considering the
number of panels.

1 Panel:  Greater attention at the top of the panel

 Less attention to the bottom of the panel or on the back if it exists

2 Panels:  Greater attention at the top of the second panel

 Less attention at the bottom of the first panel

3 Panels:  The top of the third panel is the one that attracts the most attention.
 The less attention is the bottom of the first panel.

Multiple Panels:Greater attention at the top of each panel,

 Less attention to the bottom part of each panel

However, when promoting a very expensive item, you should not choose the location of
greater focus on the part of the client, as this will give them the perception of
the restaurant is very expensive.

After the menu is built, the work is not finished, as the engineering of
it is also to form teams with effective sales strategies and give them
know the items that are intended to be sold primarily. Because these through the
Interaction with the customer can be a great tool to drive the process
of the customer's decision.
The engineering of menus is like a living organ of the restaurant, as it must always be
used as a strategic tool to ensure that the business is successful.
It should be reviewed and updated periodically in order to extract the maximum from it.
potential