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Article
Publication date: 6 March 2009

Jim Taylor, Dennis Reynolds and Denise M. Brown

The purpose of this paper is to develop a multi‐dimensional, holistic model that: avoids the variable interdependency found in earlier tools; and integrates multiple factors that…

3527

Abstract

Purpose

The purpose of this paper is to develop a multi‐dimensional, holistic model that: avoids the variable interdependency found in earlier tools; and integrates multiple factors that characterize menu item costs more accurately by considering more than gross profit.

Design/methodology/approach

Using data gathered during a three‐month period from three same‐brand units of a full‐service chain restaurant firm, the paper applies data‐envelopment analysis (DEA), a non‐parametric approach that accounts for both controllable (discretionary) and uncontrollable (non‐discretionary) variables, producing a single relative‐to‐best index based on an efficiency rating calculated on a 0 to 1 scale.

Findings

The findings suggest that the DEA‐equipped model, which is not constrained by the limitations of traditional matrix approaches, supports a more robust approach by incorporating more cost determinants than traditional menu engineering approaches.

Research limitations/implications

The paper consists of only a single restaurant concept and the evaluation results are purely theoretical. Future research should include the application of the menu analysis recommendations to an actual menu to determine the effectiveness of the model on actual operation profitability.

Practical implications

The research suggests that DEA is an effective tool in the evaluation of a restaurant menu by evaluating individual menu items based on attributes of labor and profitability factors.

Originality/value

The paper shows that by combining DEA with traditional menu analysis methodologies, a more efficient menu analysis tool may be utilized to evaluate menu items without the arbitrary allocation of non‐food costs.

Details

International Journal of Contemporary Hospitality Management, vol. 21 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 24 May 2013

Chin‐Yi Fang, Pao‐Yu (Jessie) Peng and Wei‐Ta (Woody) Pan

The purpose of this study is threefold: to use an innovative metafrontier‐to‐data‐envelopment analysis (MDEA) model incorporating multiple outputs and inputs – including the item…

1930

Abstract

Purpose

The purpose of this study is threefold: to use an innovative metafrontier‐to‐data‐envelopment analysis (MDEA) model incorporating multiple outputs and inputs – including the item revenue, gross profit, food costs, time‐driven labor costs, and other operating expenses (OOEs) – to distinguish four quadrants based on efficiency and profit to offer different strategies to the restaurateur under study; to compare the proficiency levels of the different meal categories of the à la carte and combo set menus using the metatechnology ratio (MTR) via the MDEA; and to use slack‐based analyses with simulation to improve the financial performance of a teppanyaki‐style restaurant.

Design/methodology/approach

Six months of point of sale (POS) data are obtained from a teppanyaki‐style restaurant. The proposed inputs are categorized into total food costs, total labor cost, the number of processes, and OOEs. Two outputs (total revenue and gross profit) are used to assess the efficiency of the menu items. The MTR is used to differentiate the proficiency level of the heterogeneous meal categories and to create four quadrants based on the efficiency index and financial performance.

Findings

The MTR is lower for the combo set category than for the à la carte category. Four quadrants are obtained based on the efficiency and financial performance to provide further menu suggestions. The MDEA analysis yields menu suggestions that could enhance the overall efficiency and profitability of the menu items. A simulation using these two models is conducted and shows that the restaurant profitability would be 22 percent greater using the MDEA than using the menu engineering model.

Research limitations/implications

Because there are no publicly listed teppanyaki‐style restaurants in Taiwan and it is difficult to find the same menu in different restaurants, this study consists of only a single restaurant, and the results may not be generalizable to other types of restaurants.

Originality/value

This paper contributes to menu analysis by establishing an efficiency index and using financial performance as criteria for determining which menu items to improve in a teppanyaki‐style restaurant. The MTR of the metafrontier model can differentiate the proficiency level of the heterogeneous categories, such as à la carte and combo set menus. This paper offers empirical results pertaining to the classification of menu items and describes a slack‐based analysis for improving menu items.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 11 July 2016

Rossano Linassi, Anete Alberton and Sidnei Vieira Marinho

This paper aims to examine whether using menu engineering (ME) together with activity-based costing (ABC) for menu analysis provides new insights into true menu profitability. The…

6568

Abstract

Purpose

This paper aims to examine whether using menu engineering (ME) together with activity-based costing (ABC) for menu analysis provides new insights into true menu profitability. The traditional ME approach only uses food costs to determine the contribution margin (CM) of individual menu items. This combined approach uses both food and traceable operating costs to estimate CMs more accurately.

Design/methodology/approach

An improved ME model was developed and tested in an oriental restaurant in Brazil. Direct observation of restaurant activities allowed most costs to be traced (not simply allocated) to individual menu items.

Findings

The results revealed small differences in the rankings between the traditional approach and ABC/ME, demonstrating that the integration of ABC with ME made it to possible to identify increased food-costs and lower CMs for all groups of menu items. The results also show that ABC methods are applicable to an oriental-style restaurant.

Research limitations/implications

Just one restaurant and only 80 per cent of the menu were examined in this study. Future research should apply the model used here to other restaurant types located in different geographical areas to validate the approach.

Practical implications

The results suggest that ME can be improved upon by first assessing variable costs using ABC methods.

Originality/value

This paper combines two different analytic techniques (ME and ABC) into a new approach that reveals the true picture of profit and loss for a menu from a restaurant in Brazil.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 July 1996

Paul Morrison

Profiles the development of menu‐engineering models and, in particular, the movement supporting the quantification of all costs associated with the production of a menu item…

7495

Abstract

Profiles the development of menu‐engineering models and, in particular, the movement supporting the quantification of all costs associated with the production of a menu item. Reports the findings of a study of upscale restaurant menu planners. While all menu planners adopted elements of menu engineering when planning menus, most rejected the opportunity to factor in non‐material direct costs as a major component of determining menu content and prices. In particular, individual dish labour cost was not considered an important menu‐planning criterion. Dishes which attracted low sales, but which planners felt added interest to the menu, were included on the menu. This supports the view of most advocates of quantitative menu analysis that the profitability of individual dishes on the menu is only one of several important criteria when designing the menu.

Details

International Journal of Contemporary Hospitality Management, vol. 8 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 July 1997

Stephen M. LeBruto, Robert A. Ashley and William Quain

Managing food service operations to achieve a specific food cost percentage has long been a fundamental principle of the restaurant business. Management bonuses and other rewards…

6638

Abstract

Managing food service operations to achieve a specific food cost percentage has long been a fundamental principle of the restaurant business. Management bonuses and other rewards are often based on achieving these predetermined goals. Available tools such as menu engineering and contribution margin, although sound in theory, are not frequently used. Demonstrates the use of menu engineering and contribution margin concepts in terms of customers served. Concludes that the goal of any restaurant should be to apply marketing techniques based on menu engineering and contribution margin concepts in order to achieve the highest possible financial results.

Details

International Journal of Contemporary Hospitality Management, vol. 9 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 December 1999

Jessica Li‐Jen Hwang, Terry Desombre, Anita Eves and Michael Kipps

Reforms of the NHS’s healthcare structure have placed additional pressure on all aspects of hospital management. Evaluation of the effects of these reforms is difficult without…

1511

Abstract

Reforms of the NHS’s healthcare structure have placed additional pressure on all aspects of hospital management. Evaluation of the effects of these reforms is difficult without more information on current conditions. Hospital catering in acute care trusts has little contemporary background research available. With this in mind, a survey of all the acute care NHS trusts within the eight regions in England was undertaken to investigate the hospital meal service process. A mailed questionnaire asked for the meal production system, food service method and food delivery personnel used by each trust, and a copy of a weekly menu. Results, from an 80.7 per cent response rate, indicate that most trusts use batch cooking to prepare their meals, and plated meal service to deliver the food to the wards. Almost 75 per cent of the trusts use nurses, at least in part, to serve food. English foodstuffs dominate the menus. Most of the trusts have moved towards meeting the goals set by the Patients’ Charter and other NHS recommendations.

Details

International Journal of Health Care Quality Assurance, vol. 12 no. 7
Type: Research Article
ISSN: 0952-6862

Keywords

Article
Publication date: 5 June 2017

Panmela Soares, Suellen Secchi Martinelli, Leonardo Melgarejo, Suzi Barletto Cavalli and Mari Carmen Davó-Blanes

The purpose of this paper is to explore the effect of the use of food products from family farms on school menus of the school feeding program (SFP) of a municipality in Southern…

Abstract

Purpose

The purpose of this paper is to explore the effect of the use of food products from family farms on school menus of the school feeding program (SFP) of a municipality in Southern Brazil.

Design/methodology/approach

A qualitative content analysis was carried out of 16 key informant interviews involved in the SFP, or in agriculture production related to SFP planning, development and supply. The resulting categories were used to construct a quantitative analysis protocol for school menus for three years both prior to and after (n=130 days) procurement of the SFP with food from family farms. The studied variables were the presence (yes/no) of vegetables, fruits, legumes and concentrated foods. Monthly frequency and contrast of proportions were calculated for each variable during the years studied.

Findings

The interviewees recognized that the proximity between food production and the school increased the variety of fresh, natural and organic foods in school menus. The direct supply of the SFP with foods from local family farms resulted in a significant increase (p<0.05) in the frequency of vegetables, fruits and legumes in school menus as well as a progressive reduction in concentrated foods.

Originality/value

The design of food and agriculture policy increases the availability of healthy foods in school menus and has beneficial results for promoting healthy meals in schools.

Details

British Food Journal, vol. 119 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 7 June 2024

Abduljalil Nasr Hazaea, Abdullah Alfaifi and Bakr Bagash Mansour Ahmed Al-Sofi

This study aims to examine the language choices of outdoor signs and menus in addition to the functions of outdoor signs in restaurants in a Saudi tourist city, Abha. The primary…

Abstract

Purpose

This study aims to examine the language choices of outdoor signs and menus in addition to the functions of outdoor signs in restaurants in a Saudi tourist city, Abha. The primary focus is on identifying the extent to which outdoor signs accurately represent the language choices of restaurant menus.

Design/methodology/approach

The study developed a conceptual framework for the linguistic landscape (LL) of restaurants. It employed a quantitative approach to collect outdoor signs and menus of 75 sampled restaurants in Abha using online photos and a smartphone camera. Then it analyzed the frequency and percentage of language choices on outdoor signs and menus as well as the extent to which language choices of outdoor signs represent menus.

Findings

The findings indicate that more than half (58.66%) of the restaurants employ bilingual signage in both Arabic and English. Other languages like Spanish, French, Chinese and Turkish are sporadically used, with multilingualism observed only in isolated instances. The study also reveals that bi/multilingualism on outdoor signs primarily serves informational purposes, where more than one-third (36%) of the outdoor signs use languages other than Arabic to serve a symbolic function. Regarding menus, Arabic and English dominate, while Turkish appears on one menu. Spanish, French, and Chinese are absent from restaurant menus, indicating linguistic mismatch in terms of language choices.

Originality/value

This study contributes to LL studies of restaurants in tourist cities by showing language choices and functions of outdoor signs and their alignment with menus.

Details

International Journal of Tourism Cities, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2056-5607

Keywords

Case study
Publication date: 1 August 2018

Debjit Roy, Mukund Raut, Sanchit Agrawal and Shubham Agrawal

Takshshila, the owner of Sandwichworkz, a trendy restaurant in Ahmedabad, India, is worried about the diminishing profitability of her restaurant. Recent promotional offers have…

Abstract

Takshshila, the owner of Sandwichworkz, a trendy restaurant in Ahmedabad, India, is worried about the diminishing profitability of her restaurant. Recent promotional offers have increased the footfall, but not profitability. To address this issue, she knew she had to optimize and redesign their menu. She also realizes that to properly address this issue, they would beed to take into account factors such as popularity of each menu item and their per unit profitability. She contacts Nick, a restaurant consultant who further dwells into calculating the costs involved in making each item, to determine the per unit profitability. He proposed plotting the popularity vs. popularity graph (as per Kasavana Smith model) and making qyadrant specific re-enginering decisions. Post his analysis using this menu re-engineering tool, he calls Takshshila with his recommendations. During the call, they come across a new costing methodology which may affect his recommendations. Which methodology should Nick use? Should Takshshila invest in capturing data for the new methodology?

Details

Indian Institute of Management Ahmedabad, vol. no.
Type: Case Study
ISSN: 2633-3260
Published by: Indian Institute of Management Ahmedabad

Keywords

Article
Publication date: 21 March 2022

Rory Hill and Joanna Fountain

This paper aims to situate restaurant experiences and in particular the wines available on wine lists, within the wider context of wine tourism. This is done by examining the wine…

Abstract

Purpose

This paper aims to situate restaurant experiences and in particular the wines available on wine lists, within the wider context of wine tourism. This is done by examining the wine lists of restaurants in two New Zealand destinations, focusing in particular on the showcasing of “local wines” and the factors behind these offerings, and outlines the potential implications for hospitality managers and a wider academic audience.

Design/methodology/approach

The population of restaurants in each destination was identified using online directories, from which a sample of wine lists, comprising 84 in Christchurch and 43 in Queenstown, was systematically analysed to identify number of wines, regional origin, price and other information. Following this, key informant interviews in restaurants in each destination explored decision-making factors in stocking local wines, including consumer base, existing networks and reputation and additional challenges and opportunities.

Findings

Restaurants in each destination offered more New Zealand than foreign wines on their lists, though significant regional differences are apparent. Queenstown restaurants offered slightly fewer imported wines and significantly more local (Central Otago) wines than Christchurch restaurants. The global awareness of Central Otago pinot noir is a factor in this wine list representation, but there are also other influences, including the greater concentration of overseas visitors (pre-pandemic) and more significant visibility and greater opportunities for wine tourism experiences within the destination.

Originality/value

This paper represents an important addition to academic research on wine marketing in the on-premise sector of emerging wine regions. This paper also highlights the potential significance of restaurant meals – including wine choices – in overall wine destination experiences and demonstrates differences in approach between restaurants in wine regions of similar size but with different reputations, international visitation and wine tourism infrastructure.

Details

International Journal of Wine Business Research, vol. 34 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

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