There are several sequential steps in the development of a property that will determine how productive the end product is. A market analysis is conducted to determine the potential customers or guests. From this information, a menu, to use the example of a restaurant, is developed that will appeal to the market segments being sought. The type of service and operating characteristics are set, equipment characteristics determined, and the resulting space requirements and arrangements finalized.
Market analysis
Various factors can be identified to give a picture of the type of menu desired. Occupation is the first. Students interested in bulk food at low prices, health-conscious secretaries, and expense account executives will seek different menu offerings. The income level of the target segments is crucial. The more discretionary income is available, the more can be spent on dining out. The educational level of the market is related to both income and occupation. Generally speaking, the higher the educational level, the greater the incidence of eating out.
Age and sex are also important factors. Certain foods appeal more to a younger crowd. Some foods also are more popular with women, or with men; chicken a la king, for example, is a traditional light luncheon favorite of women's groups in the US.
The reasons people eat out will influence what is put on the menu. If a particular restaurant caters to the so- called special occasion crowd, for example, there will be a number of flambéed items and flamboyant drinks. The marketplace can be broken down into three broad segments: the captive market, the mass market, and the status market. Those in the captive market eat out because they have little or no choice. This includes people in prisons, institutions, hospitals, and colleges. Their primary motivation is physical, eating simply to refuel. The mass market is concerned with other things. It may be a change in routine, convenience because both spouses are working outside the home, or a means to get away from the kids. The status market is concerned with ego needs. To see and be seen is important. It may be a way to impress a date or a business client, or it may be a special occasion such as a birthday or anniversary. Each group will look for different items on the menu.
The final point to be considered here is the pattern of arrival. The planner needs to know the likely travel flow in terms of numbers per hour as well as the likely composition of the customers: singles, couples, families, or groups.
Menu development
Menu offerings will be developed in accordance with the market segments being pursued. In turn, the menu will serve as a basis for future layout and design options.
The frequency of changes must be considered. A menu may be completely fixed, such as a fast-food operation. Another option is to have a generally fixed menu with seasonal changes (two to four a year) or changing specials, to give repeat business some variety while offering the chef the opportunity to take advantage of special prices in the marketplace. This is also a convenient method of recycling leftovers.
Certain operations change their menus every day. This may be appropriate where the menu is limited and the business consists of heavy repeaters, such as at a camp or resort. Consideration should be given in the planning stages to balancing the types of foods each day in order that one work station, the grill, for example, is not overburdened. Cafeteria-type operations tend to use a menu that repeats on a two- to six-week basis. Other operations incorporate daily or cyclical changes but keep certain popular items standard on the menu.
The size and extent of the menu must also be considered. The more limited the menu, the less equipment will be needed. The more extensive the menu, the slower the service, as well as more storage space and equipment that will be needed. A more extensive menu does appeal, however, to a larger number of potential customers. A decision also must be made on the type of service available: à la carte (a French phrase meaning “according to the menu”) or complete meals.
At this point the particular items can be chosen. This should be done in accordance with certain guidelines:
- The items should appeal to the customers being sought.
- They should be profitable. Profitability can be measured in terms of food cost percentage,the ratio of food cost to selling price, and in dollar contribution margin, the difference amount between the selling price of one item and its food cost.
- They should be easy to produce. The easier and faster the items can be produced, the less time, labor, and equipment will be needed.
- They should be readily available at all times.
- They should be easy for the employees to prepare. It is pointless to put items on the menu that the staff cannot prepare with a high level of consistency.
- Menu balance must be considered. It is important that no one piece of equipment or work station be overwhelmed because of the mix of offerings.
- The items should be compatible with each other and offer a balanced selection.
- Price is also important. A range of prices will give customers the option of choosing a lower-priced item they may feel offers better value. Excessive price spread, the difference between the most and least expensive entree, encourages sales of the lower-priced dishes. The highest-priced entree should be no more than twice that of the lowest-priced one.
Food preparation
Various methods are available to prepare the same item. The extent to which a restaurant will use prepared items is important in determining the type of equipment and relative space required. For example, a meal can be prepared from scratch using only fresh raw ingredients, from a combination of fresh and pre-prepared items, or from precooked frozen portions. The choice will determine how much area is required for storage, pre-preparation, and cooking.
Type of service
There are several different methods available to serve food to the customer. In table service operations, servers bring the food to the customers' tables. These types of service units require more square meters of space per seat than other types.
Counter service is where the customers sit at a counter. Popular at breakfast and lunch, this operation typically features a limited menu and high turnover and requires a minimum of space.
Booth service allows a certain amount of privacy. Combinations of the above three methods of service are common.
Tray service is used in airlines, hospitals, and similar types of facilities. Room service in hotels require areas for loading the carts. Cafeteria service specializes in low-to medium-priced meals.
Restaurants may also be self-service. This can be accomplished with a buffet, with an entirely take-out operation, or with vending machines.
The type of service chosen will have implications for the absolute space required as well as the relative distribution of that space among the various functions.
At this stage, the type of equipment necessary to serve the desired menu can be determined. Dividing the estimated number of items to be prepared per hour by the hourly capacity of each piece of equipment will determine the amount of equipment required.
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