Unit 10

Unit 10

Culinary Arts 2

Truth-in-Menu Laws &

Menu Pricing

CUL2-MenuPlanning-PowerPoint2.ppt

Bellwork:How do foodservice

establishments determine how much to charge for

menu items?PROPERTY OF PIMA COUNTY JTED, 2010


ObjectivesStudent will be able to: 1. Differentiate between menu types2. Construct a signature dish menu item

following truth-in-menu principles.3. Identify factors that influence menu

prices.


TerminologyMenu- a list of the dishes served

at a meal; food and drink choices, a bill of fare

Property of CTE Joint Venture CUL2-MenuPlanning1.ppt

Terminology• Á la carte menu- a menu on which each food item or beverage is priced and served separately

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TerminologyCalifornia menu- a single menu listing breakfast,

lunch, and dinner foods, customers can choose any item at any time of day


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Terminology


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Du jour menu- lists food that is served only on that particular day

Du jour menu- lists food that is served only on that particular day

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Terminology• Table d’hôte menu- offers a complete meal

from appetizer to a dessert for a set price


Terminology


Fixed Menu- also called a static menu, offers the same items every day, allowing customers to continue to return for favorite dishes. Many neighborhood and ethnic restaurants use a fixed menu

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Terminology

• Truth-in-Menu Laws- The collective name given to various laws and regulations that have been implemented to ensure accuracy in the wording on menus.


Truth-in-Menu Laws:

• These laws, which could perhaps better be described as “ accuracy in menus, ” are designed to protect consumers from fraudulent food and beverage claims

• The various Truth in Menu laws currently in effect run to thousands of pages, and are overseen by dozens of agencies the key is honesty in menu claims, in regard to both the price that is charged and the food that is served.

“ CUL2-MenuPlanning-PowerPoint2.ppt

Truth-in-Menu LawsClaim Examples:Quantity An 8 ounce filet mignon must arrive at the table

as soQuality If menu says Prime, restaurant cannot serve

“Choice”Price If 6 oysters are sold for $10, 6 oysters must be on

the plate. Also, all charges must be presented up front

Brand Names If descriptions says “Godiva”, restaurant cannot serve “Hershey’s”

Product Identification

Example: Lobster cannot be substituted with Monkfish

Point of Origin Vermont maple syrup must be from VermontMethods of Preparation

If menu says potatoes are baked, they cannot be broiled

Verbal and Visual Presentation

Pictures and descriptions must be completely accurate

Dietary and Nutritional Information

All dietary and nutritional data must be completely correct and supported with statistical data


What Factors Influence Menu

Prices?1. Restaurant Style2. Customer Base3. Competition4. Service Style5. Restaurant hours6. Profit Objective


Menu Pricing MethodsPrime Cost Pricing Method

Copy Cat MethodValue Based Pricing Method

Fair Pricing MethodFactor Method


Prime Costs Pricing Method

Step 1Determine the labor cost per guest by dividing labor costs by the number of expected guests.Step 2Determine the prime costs per guest by adding the labor cost per guest to the menu item’s food cost.Step 3Determine the base selling price by dividing the prime costs per guest by the desired prime costs percentage.


Copycat MethodThis method is the simplest of methods to

determine menu prices: • Find a restaurant in a nearby location that has a

similar style of service, restaurant and menu items.

• Copy their prices.

CUL2-MenuPlanning-PowerPoint2.ppt 7starspress.com

Value Based Pricing

Price your product based on the value it creates for the customer. This is usually the most profitable form of pricing, if you can achieve it


Fair PricingSometimes it simply doesn't matter what the value of the product is, even if you don't have any direct competition. There is simply a limit to what consumers perceive as "fair".


Factor Method

• The factor method is the oldest and simplest method for pricing menu items. To determine the price of a menu item, multiply the raw food cost by an established pricing factor. All items are then marked up by the same amount.


Steps for Using the Factor Method:

•


Partner A turn to partner B.

Tell or teach your partner the two most important things you

have learned so far about pricing menu items.

Switch roles and repeat the process.

PROPERTY OF PIMA COUNTY JTED, 2010CUL2-MenuPlanning-PowerPoint2.ppt

Unit 10

Documents

Transcript of Unit 10