A Culinary Perspective on

Menu DevelopmentPresented by

Charlie BaggsPresident & Executive Chef

Charlie Baggs, Inc.

c.baggs@charliebaggsinc.com

www.charliebaggsinc.com

Skip Julius CEC, CRC, CCSProduct Development Leader

Gordon Food Service

Skip.Julius@gfs.com

www.gfs.com

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Presentation at a Glance•Consumer insights•Increased ingredient cost•Look at the menu•Rising cost strategy•How to capture customers interest•Tracking trends•Menu engineering•Concepting and menu descriptions•Pleasure principles

Consumer Desires Overlap

Most successful products meet these characteristics

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Healthy and Wellness trend• Berries• Calcium• Plant sterols• Gluten intolerance • Nuts• Omega 3’s• Soy• Blueberries• Pomegranate• Tea

• Natural• High fiber • Whole grain• Fresh perception• Customized for consumer• Fortified• Reduced “Bad” Ingredients: HFCS,

calories, trans fat, sodium,

• Portion controlled • Flax, nutritious

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Restaurant Trends Trend: Customization pick a pair, choose a combo and make my way. Source: Datassentials October 2007Ideas: • Supper / Snack Combos – soup and sub or sub and dessert – separate (unbundled)

beverage

Trend: Decline in core diner dayparts (dinner and lunch) NPD Consumer Visits, August 2007Ideas: • Add more snack-like foods

Trend: Niche Focused MenusIdeas: • LTO’s that celebrate a style, region, or daypart• Bistro Bakery LTO – baguette, croissant and Bahn Mi sandwiches • Breakfast for Dinner LTO sandwiches • Italian Bistro LTO – bun and flatbread sandwiches • Calorie Controlled Flatbreads and Wraps

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Restaurant TrendsTrend: Upgraded offers for kidsIdeas: • Make kid size Signature dishes• Fruits – fresh whole fruit, or cut fruit or cocktail available as side or dessert options or

vegetable sticks with dressing cup or pack • Nutritional information posted for children’s menus citing accordance with acceptable

standard of childhood nutrition, and awareness of childhood obesity concerns.

Trend: Restaurants and environmental responsibility Ideas: • Waste reduction theme posters in store, sustainable paper sourced products• Segregated waste recycling waste containers

Trend: Marketing lunch menu specials for workers Ideas: • Offer “buy two get a percent off” deals. • Offer daily weekday lunch special subs & combos• Offer frequent diner cards to local work places

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Food Trends Overview

Consumers Want Choices1. Convenience: Dine in, dine at home, or dine on-the-go

– Cupholder Cuisine: Demands food that travels well

2. The Rise of Breakfast

3. Customization of Menu Items

4. Choice of Portion Sizes

5. Miniaturization of Treats/Indulgences

6. Choice of Sides

7. New Beverage Options

8. Bold New Flavors

9. Ethnic - Authenticity a must

10.Premiumization vs. Basic8

“Green” is “IN”

• Grass Fed• Hormone Free• Cage Free• Ethical• Fair Trade• Clean Foods• Carbon Footprint• Energy Efficient• Eco-Friendly• Free Range

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• Recyclable• Sustainable• Traceable• Vegetarian/Vegan• Locally Grown• Natural• Organic• Humanely Raised• Rainforest Alliance• Whole Foods

Food TrendsTrend: Familiar with a TwistIdeas: • Take signature ideas and offer LTO variations

Trend: Moving to smaller portionsIdeas: • Half portion sandwiches, salads, entrees• Differentiate by focusing on quality – unique

sauces, premium proteins and exquisite breads.

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Food TrendsTrend: Fruit & Savory (sweet & savory)Ideas: • Savory proteins accented by sharp, sweet fruit

flavors - traditional or exotic (mango was 1st)• Fruit salsas or sweet glazes can be small in

quantity applied but still provide significant identifiable flavor and texture

Trend: Shrimp has greatest seafood share on restaurant menus.

Ideas: • Add shrimp to your sandwiches, soups, salads

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Consumer Trends Overview

Top Trends To Watch

• Healthy Foods• Reduced Portions/Tapas• Small plates menus• Bite-sized desserts• Bold Flavors (Mexican & Asian)• Local Foods & Organic Products

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Consumer TrendsTrend: Communal dishesIdeas: • Combo platters, sharable

Trend: Healthy, All-Natural, Better for You ItemsIdeas: • Incorporate nutrient-rich ingredients. perceived as

inherently good due to high levels of anti-oxidants• Fruits include: blueberries, mango, cranberries,

apples, kiwi, strawberry and oranges.• Bread ingredients could be: oats, walnuts, flax seed,

wheat grass, soy, chives, barley, buckwheat, other whole seeds.

• Condiment components include: olive oil, sesame, cinnamon, ginger, oregano, turmeric.

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Customization

• Offer sauce accompaniment

• Offer portion size alternatives

• Hot or cold serving option

• Kid or adult packaging choice

• Packaged for ‘the office’ or immediate consumption

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Increased Ingredient Cost

• Example: “The Clorox Story”

Early in the 20th century hypochlorite became very scarce and cost increased due to supply and demand.

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Your Menu is the Lifeblood of your Business.

Don’t Take it for Granted! • Capture customers'

interest• Encourage repeat visits

• Review the menu now

– Profitability– Operational constraints– Labor capabilities– Current trends– Seasonal menu options

It can help to work with an outside/objective source

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How do you create a menu that captures customers' interest?

• Demographics• Regional Issues• Psychographics• What does your customer

want• Who is your competition• What is the competition

doing

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Know who your customer is!

Menu Strategies And Practices

• The Menu is the #1 Merchandising Tool• Rounding Theory• Eye Gaze Patterns• Shading, Boxing, Angled Specials, Top &

Bottom of a List• Price to the Consumer, Not to Formula• Branding drives Image and Value

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Rounding Theory• Under $5.00, guests only recognize price

increments of 25¢ • Above $5.00, guests only recognize price

increments of 50¢ and 95¢.• Over $10.00, the incremental price point is $1.00.• Common pricing strategy - a $2.54 food cost and a

33% cost percentage target should be priced at $7.62.

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Rounding Theory cont.

• Manager lowers pricing to $7.75 from $7.95• In a year, most restaurants will serve in excess of

100,000 customers.• An extra 20¢ on just half of those customers (in

pure profit) would put an extra $10,000 to the bottom line.

• Restaurant only makes $50,000, so this is a 20% increase.

• Fact Based Selling!

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Eye Gaze PatternsEye Gaze PatternsEye Gaze PatternsEye Gaze Patterns

• Customers don’t read menus.• Customers scan menus• The eyes follow a predictable path• Strategically place high-profit items• Customer spends less than 45 seconds

scanning the menu..

• Customers don’t read menus.• Customers scan menus• The eyes follow a predictable path• Strategically place high-profit items• Customer spends less than 45 seconds

scanning the menu..

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Eye Gaze Patterns Mapped

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Shading, Boxing, Angled Specials, Top & Bottom Of Lists

• You can expect a minimum 20% increase – At the top or bottom of a list.– When you shade or box.

• Patrons only scan menus.• Eye gaze motion will be drawn to

variations in text, layout or format• Combine shading, boxing and special with

other forms of merchandising25

Price to the Consumer, Not to Formula

• Formula pricing is lazy.• A formula price leaves Money on the table. • Customers have limited knowledge of raw

costs. • Set price points based on the value perception

of the guest and what the market will bear.• Use coffee as your example …• Fact Based Selling!

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Margin Dollars Increase by 30-50% !

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$1.50

$1.05

Where to get Trends• NRA• The Food Institute• CIA• Food Navigator• Technomic• Google• Datamonitor• Mintel• Datassentials• NPD• Publications (Trade & Consumer)

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But…what are the real trends?

How to filter out the “noise”

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Mc Cormick Spice

Food Prod Design

NRA Stagnito's Bell Flavor Mintel Food Processing

1 Oregeno/ Heirloom Beans

Capers Fresh HerbsChocolate - Artisan

MangoBlood

OrangeAcia

2 Vanilla/ Cardamom

CoconutExotic

MushroomsTea Achiote Madaga-car

VanillaYuzo

3 Chile/ Cocoa

Heirloom Salts Spicy Sofrito Spicy - Habenero

Pomegranate

4 Coriander/ Coconut

TamarindPomegranate P-butter

Ras-al-hanout

Chocolate - Artisan, White

Blood orange

5 Lemon Grass

/Lychee

Specialty Sugars

Starfruit Vanilla TandooriLemon - Meyer

Mocha

6Red

Curry/MasaSea Salts Kiwi

Combo flavors

Tea Smoked

Chipotle - non trad

usesTea

7Orange

Peel/WoodMint

Coffee flavors

CharmoulaBasil - non traditional

usesSpicy

8 Allspice/ Exotic Meat

YogurtSweet/

HotCumac Pomegranate Bourbon

9 Poppy Seed/Rose

Chai Smokey Kaffir lime Yuzu Tamarind

10 Sage/Rye Whiskey

Lemon Grass

Tamarind AcaiCombo Flavors

Flavor Trends

Flavor Trends1

Oregano/ Heirloom

BeansCapers Fresh Herbs

Chocolate - Artisan

Mango Blood Orange Acia

2Vanilla/

CardamomCoconut

Exotic Mushrooms

Tea AchioteMadagascar

VanillaYuzu

3 Chile/ Cocoa Heirloom Salts Spicy SofritoSpicy -

HabañeroPomegranate

4Coriander/

CoconutTamarind Pomegranate P-butter Ras-al-hanout

Chocolate - Artisan, White

Blood orange

5Lemon

Grass /LycheeSpecialty Sugars

Starfruit Vanilla TandooriLemon - Meyer

Mocha

6Red

Curry/MasaSea Salts Kiwi

Combo flavors

Tea SmokedChipotle - non

trad usesTea

7Orange

Peel/WoodMint Sour Orange Coffee flavors Charmoula

Basil - non traditional

usesSpicy

8Allspice/

Exotic MeatYogurt   Sweet/ Hot Cumac Pomegranate Bourbon

9Poppy

Seed/RoseChai   Smokey Kaffir lime Yuzu Tamarind

10Sage/Rye Whiskey

Lemon Grass     Tamarind AciaCombo Flavors

1 Farmers Market Cuisine

Probiotics Mini Desserts

Small Plates Local Flavor (trumps health)

Curbside

2 Lightweight Sauces

Organic/ Natural

Local Artisan Burgers

Ethical Convenience

Build-a-Meal

3 Made-in-House Foods

Fresh Organic Local Sourcing

Green Tradition made new

Indulgent

4 Hi-Impact Ingredients

Superfruit Flatbread Serious Pizza

Emerging Cuisines

Combo Ingredients

Guilt Free

5 Global Street Food

New World Cuisine

Specialty Sandwich

Savory Desserts

Umami Fruit = Health

Organic/Natural/Fresh

6 Local Bold Flavor

Asian Apps Molecular Gastronomy

Crossover flavors

Asian + Citrus

Heritage/Local/Heirloom

7 Slow Cooking

Caffeine Power

Whole Grain

New World Cuisines

Asian/Thai/ Island

8 Eggs Meditteranean

Meditteranea

9 Hi Tech Tools

Pan Seared Sweet 'n Spicy

10 Latin Smoked

Macro Trends

Flavor & The Menu

Data-monitor NRA NY Eats Food Navigator

COEX Mintel

1Farmers Market Cuisine

Probiotics Mini Desserts Small Plates Local Flavor (trumps health)

Curbside

2Lightweight Sauces

Organic/ Natural

Local Artisan Burgers Ethical Convenience Build-a-Meal

3Made-in-House Foods

Fresh Organic Local Sourcing Green Tradition made new

Indulgent

4Hi-Impact Ingredients

Superfruits Flatbread Serious Pizza Emerging Cuisines

Combo Ingredients

Guilt Free

5Global Street Food

New World Cuisine

Specialty Sandwich

Savory Desserts

Umami Fruit = Health Organic/Natural/Fresh

6Local Bold Flavor Asian Apps Molecular

Gastronomy???Crossover flavors

Asian + Citrus Heritage/Local/Heirloom

7Slow Cooking Caffeine Power Whole Graion New World

CuisinesAsian/Thai/ Island

8 Eggs Meditteranean Meditteranean9 Hi Tech Tools Pan Seared Sweet 'n Spicy10 Latin Smoked

Macro Trends

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Menu EngineeringYour approach to menu analysis must have a plan

“What is your culinary Brand identity?”

Create and maintain a brandOrganization of menu / menu layoutUse a “Daily Menu” / daily specialsMaintain quality and consistencyMenu positioning

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Engineering Menu Profit

Real Time Pricing Set menu item performance levels

-Don’t become emotionally attached-If items don’t perform or contribute: 86 ‘em

SKU Utilization- Get Creative Specials – your best friend (BFF)

-Steer customers to higher margin items

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Consumer Food Prices Unadjusted Mar. ‘08

• All Items 4.9%

• All Food 4.9

• Beef & Veal 4.7

• Pork 1.8

• Poultry 8.3

• Fish & Seafood 4.1

• Eggs 34.7

• Dairy Products 12.8

• Sugar & Sweets 2.8

• Fats & Oils 6.9

– Source: www.usda.com

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ConceptingA “hamburger” doesn’t always sell itself

Less descriptiveA ground beef patty with melted cheese

on a grilled bun with bacon, lettuce and tomato

More descriptiveA fire grilled angus ground beef patty

topped with Wisconsin cheddar cheese, Apple wood crispy bacon, fresh lettuce and ripe tomato slices on a toasted Sour dough bun

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Menu Descriptions

• Include ingredients: spring onions, portabella mushrooms, etc.

• Add terms to make ingredients alive: caramelized, sautéed, basted, glazed, crispy, chunky, rich

• Describe colors/temperatures/sensations: chilled, cool, refreshing, soothing, blush, rosy, vibrant green

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Concepting Action Words

• Flavors (zesty, tangy, salty, etc…)

• Cooking Methods (roasted, fried, caramelization, etc…)

• Textures (soft, crispy, chewy, etc…)

• Shape & Size (chopped, julienne, minced, etc…)

• Cooking Action (drizzled, shaved, stuffed, etc…)

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Making Food Irresistible

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Great Food Gives Great Pleasure

• Food and beverage is one of three essential human needs for basic survival

• Yet, aside from love, nothing else evokes as much pleasure and passion as food!

We Choose the Food That Gives Us The Most Pleasure!!!!!

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Why it Works

Understanding Why Food Tastes So Good…or Doesn’t

PLEASURE

Genetics: Why We Respond to Food Genetics: Why We Respond to Food PleasurePleasure

Humans begin5,000,000 BC

Hunter-Gathers

Agriculture begins8,000 BC

0 AD

Industrial Age 1900

AD

Genetics: Why We Respond to Food Pleasure

• 4.998 % of human history is as hunter gathers• Natural selection results in our genes being

predisposed as hunter gathers• The brain and body have 5 million years of

developing mechanisms that respond to pleasure stimulus: it’s how we survived this long!

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Food Pleasure Equation

• When you have a food choice the brain calculates how much pleasure will be generated during the eating and digestion of any food. EXPECTATIONS!

• Goal of the brain, gut and fat cell is to maximize the pleasure extracted from the environment in both food sensation and macronutrient content

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Pleasure Rule #1 Taste Hedonics

• Salt, Sugar, MSG, 5’ Nucleotides in solution yield most pleasure

• Glutamates = Umami (MSG is but one)• Umami signals presence of protein

– Salt + Glutamates = powerful hedonics• Emulsions –

– Salt-fat: butter, salad dressings, mayo– Sugar-fat: chocolate, ice cream, cream

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Pleasure Rule #2Foods High in Umami/Glutamates

Many preferred food are naturally high in Glutamates:

• Soy Sauce• Parmesan Cheese• Tomato• Potato• Sardines• Fish Sauces

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Pleasure Rule #3Taste Hedonics

• Salivation Response– We prefer foods that are moist or evoke saliva– Saliva is critical for solute contact with taste buds (no

taste, no pleasure)– Saliva fosters food lubrication, enhances the eating

experience– Why is there salt on crackers?– Add salt and fat (think potato chips) = perfect

“salivation” food

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Pleasure Rule #4Balance the BASICS™

Balance Acid Sweet Intended flavor and texture Color Salt

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Pleasure Rule #5Texture

About Texture• The brain has more difficulty “reading” a flavor

when a food has more texture• The brain reads temp first, then texture and

finally flavor• Foods like ice cream, foie gras and risotto are

sensed as richer and more sensual

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Pleasure Rule #6Sugar and Fat Pleasure

• Pleasure magnified when mixed with fat: Emulsion Pleasure Theory

• Brain Loves Emulsions with sugar/salt

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To Summarize

Your menu is the most important thing you have. Never take it for granted!

Culinary Quotes

•"It is the sauce that distinguishes a good chef. The saucier is a soloist in the orchestra of a great kitchen." - Fernand Point

•"Come quickly I am tasting the stars!" - Dom Pérignon, upon discovering Champagne

•"Burgundy makes you think of silly things; Bordeaux makes you talk about them, and Champagne makes you do them." - Brillat-Savarin

•"Poultry is for the cook what canvass is for the painter." - Brillat-Savarin

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