Restaurant Menus

[ASCW]

I was recently asked about a job helping a new restaurant with their menu.
I'm not a foodie by any means. But I do know that menu prices, etc open up a whole new ball game.
So I was wondering if anybody here had any experience doing anything like this. And if they could give me any pointers for research, practice, or any other tips. (Books about the psychology of the subject, as well as effective research methods for the job itself. Would be greatly appreciated.)

Thanks in advanced.

-Andy

[HorseStall]

I'm surprised a restaurant would ask you to help if you lack experience with food costing. There is some psychology to pricing, but there is also a whole lot that goes into food costing from the base price of the item(s) and ingredients, the prep work, storage costs, any losses etc... must be all be considered as part of the base cost before you figure out how much you charge. It is far more complicated to determine cost of menu items, than lets say a wholesale item you buy and simply resell.
I haven't worked in restaurants in years, but this is something that likely would have changed much. The chefs/cooks and whoever runs the kitchen needs to be involved they can give you ideas of waste costs etc...

[Pusateri]

The Cornell Center for Hospitality Research has studied menu pricing and format. Here is a link to the abstract of one study they did last year. You have to sign up for their newsletter to read the full report, but it's free.

$ or Dollars: Effects of Menu-price Formats on Restaurant Checks

There is also a nice little book called Menu Design: Restaurant Manager's Pocket Handbook

[viscoa]

Good luck with this. I am interested in what others will have to offer in terms of tips and advice.

[marcell12]

Dear you just do goggling you would get many material for you use.

[sandrasims]

Have you ever watched Gordon Ramsay's Kitchen Nightmares? He has a lot to say about menus. Especially ones that have way too many items. I love this show. There are always so many lessons that apply to any kind of business.

[lolololo]

Restaurant Revenue Management Systems (RRMS)

What is Restaurant Revenue Management?
Revenue management is the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right place at the right time. The determination of "right" entails achieving both the most contribution possible for the restaurant while also delivering the greatest value or utility to the customer. The application of revenue management has been most effective when it is applied to operations that have relatively fixed capacity, demand that is variable and uncertain, perishable inventory, appropriate cost and pricing structure, and varying customer price sensitivity. Those attributes are found in the restaurant industry.

What is Pricing an why is it so imporatnt?
In simple terms, pricing is a group of activites by which a comapny determines what its customers will pay for its products and services offered. But if you don't think pricing is a critical componenet of your business that requires unique concepts, practices, and tools, then you will miss out on its trtemendous power to increase your bottom line. Improving pricing is, in fact, one of the most strategic and powerful ways for you to improve your business and finincial performance. According to a 2010 research report, on average a 1% improvement in price translated to an 11% increase in profitability.

Pricing for Optimal Profit, Without Sacrificing Transactions or Customer Traffic
Grounded in state-of-the-art databases and statistics, IRHC Group uses a analytical process that enables us to identify menu prices that yield optimal gross profit without negatively impacting customer traffic.IRHC Group consultants use sophisticated statistical inference to analyze demand patterns and elasticity and determine specific trading relationships between products.
It is a revolutionary and quantitative approach to pricing that enables you to uniquely manage the long-term brand value on a granular level - by letting the consumer set the right price. Price strategies are developed with a blend of consumer needs and business rules and conditions that drive brand strategy and financial plans.
IRHC Group consulting teams use the insights gleaned through this analytical process to develop demand-based pricing strategies that are brand-specific, actionable and highly effective whether on a market, tier or store level.
The most comprehensive Restaurant Revenue Management System in the Industry. We utilize our experience of over 30 years to evaluate and create a multi facet restaurant revenue management system. Which includes but not limited to the following: No other company can offer these services below.

Menu Development: and Design: based upon concept design, consumer preference revenue and profit maximization.

Recipe Development: to maximize Return to Net (RTN) profits and increase speed of service standards.

Menu Item Placement: a scientific approach to help influence consumers spending habits that maximizes revenue and profits.

Price Evaluation Systems: a comprehensive evaluation of your menu pricing to ensure maximum profit without jeopardizing guest counts or customer traffic. IRHC Group clients experience on average gross profit gains of 2% of sales without deterioration of transactions, customer traffic or perceived value.

Duration Management: a systematic approach based upon Revenue Per Available Seat Hour (RPASH), Using RPASH allows managers to capture more of the restaurant's actual performance in their analysis than does average check or typical food- or labor cost percentage.

[roger123]

Menu prices will depend on the type of restaurant and the kind of food you offer. If you are able to differentiate well, you can charge a higher price for the same menu item offered anywhere else.

[aandersen]

Vin wrote about this on the Clambake, here
Take One From Column A, One From Column B