What is an Effective Menu?

ANSWER:

1) One that reflects the restaurants concept.
2) One that can build revenue and control costs.

The menu is one of the most significant documents as it identifies how money is made and how money is spent.

REVENUE PRODUCER

1. Well planned with thought towards the needs of the customer through understanding trends and fads in the marketplace.
2. Visually appealing, creates a first impression, readable and guidable.
3. Possibly Educates and sells specific and add-on items.

CONTROLS COSTS

1. Identifies the kind and type of food and beverages needed.
2. Identifies the type and capacity of equipment, and skill set of employee
3. Cross utilizes products throughout the menu to minimuz excessive products and expenses in- house.

AN EFFECTIVE MENU...

* Is the primary marketing tool - It's often referred to as the 2-3 sales pitch because it takes about that period of time for a customer to view a menu and make decisions and form impressions about the restaurant.

* More than just a list of food items - It should list other "need to know information" such as name of restaurant, course titles, sub courses, menu items, menu item descriptions and prices. A menu may also list "nice to know information" such as hours of operation, mission statement, other locations, web-site, chef's name, suggested wine pairings etc.

* Creates first impressions and projects an image - The image is conveyed through the design, color, shape, style and size of text, pictures, images on the menu. What would the tv show Baywatch be without the beach, the bathing suits or Pamela Anderson.

* Educate and sell specific and additional items - A properly designed menu will position highly profitable items and items that want to be sold in prime real estate locations. Good menus can also provide enough information either in the description of a food item or elsewhere on the menu to educate customers in the products they are consuming. Example: Lettuce Entertain You Enterprises (60 million plus) Chicago based restaurant company and owner of Big Bowl restaurants explains how to use chopsticks and also what a potsticker is. Bin 36 - Chicago based restaurant, pairs every menu item with several wine selections to heighten the experience.

* Is a controlling document - Whatever is listed on the menu, acts as a purchasing guide to the chef and acts as a training guide to the servers. Example: If a 21 day dry-aged steak is listed on the menu then a 21 day dry aged steak should be purchased and sold as such. If a menu lists an 8oz steak then an 8 oz steak should be ordered and sold as such.

Restaurant Failure Rate

According to a 10 year study by Cornell University and Michigan State 27% of all new restaurants fail within the first year of operation. 50% of them are wiped out after the 3rd year.

3 MAJOR REASONS THAT ARE CITED FOR THESE FAILURES:
1) Poor Location
2) Lack of $
3) Lack of Management Experience

Our focus on this class is on #3 - Lack of Management Experience. Specifically, educating about menu planning. The menu is THE major selling tool and controlling document within a restaurant and is essential to the success of a restaurant concept. The menu is the central theme that control, directs, and influences most functions within the operation.