Refresh Theory week
3a. Menu engineering analysis including the food cost calculation per dish (Financial Management)
- discusses the menu engineering analysis within the theory assignment of the virtual version of Refresh.
Explain and link:
- Popularity and gross profit
- Winner, runner, sleeper and loser classification
- Overall cost of sales percentage
3b. Service blue print analysis (Hotel Business)
- apply the service blue print model to Refresh
The Refresh concept needs to be linked and translated into the official parts of this theoretical model:
- physical evidence,
- customer,
- contact person onstage & backstage,
- the support processes
4b. Refresh concept design based on the service blue print (Hotel Business)
- apply the service blue print model to Refresh for the first week of the new school year
The Refresh concept needs to be linked and translated into the official parts of this theoretical model and the chosen menu:
- physical evidence,
- customer,
- contact person onstage & backstage,
- the support processes
- discuss the differences between the blue prints for the standard concept of refresh and the own chosen concept of refresh
4. Advise for the near future – Assigned week: Monday October 12th up until and including Friday October 16th
4a. Full menu for a day of choice, including food cost calculations and effects on profitability (Financial Management)
selects a day of choice in the assigned week mentioned above and creates a full menu for:
- lunch and dinner: two pizzas, two pastas, two soups, 3 sandwiches, 1 lunch plate warm, 1 diner plate warm, 1 fresh salad.
It is allowed and advised to optimize the chosen menu from the theory assignment.
Per dish you make:
- a food cost calculation, including a cost of sales percentage.
The effects per dish on the overall cost of sales for Refresh are to be discussed, including an understanding as to how this number can be influenced. (Financial
Management)
,3c. Staff satisfaction (HR Management)
Discusses the staff satisfaction linked to:
- attitudes and,
- the service profit chain.
4c. Proposed improvements for staff satisfaction (HR Management)
-discusses proposed improvements for staff satisfaction linked to attitudes and the service profit chain.
,Assignment 3a: Menu engineering analysis including the food cost calculation per dish
Explain and link:
Menu engineering = about optimising your menu in relation to G.P and Popularity rating. It shows ratings among themselves.
It looks at two different elements:
- Gross profit (selling price – cost of sales/food cost)
- Popularity (how often is the dish sold relatively to the other dishes on the menu)
G.P.% > 57.2(100-42.8%(average cost percentage))% = G.P.rating Pop.Index > 8.75% Pop.Norm = Pop.rating
G.P.% < 57.2% = G.P.rating Pop.Index < 8.75% Pop.Norm = Pop.rating
Four distinctive classifications:
- Winner: dish with a high gross profit and a high popularity
- Loser: dish with a low gross profit and a low popularity
- Runner: dish with a low gross profit and a high popularity
, - Sleeper: dish with a high gross profit and a low popularity
How to change the classification:
Changing a runner into a winner (=increasing gross profit)
- You could leave an ingredient out (change recipe)
- Make smaller portions (no change in recipe)
- Increase selling price
- Delete the dish from the menu if COS is really high
- buy in bulk
- Cheaper ingredients
Changing a sleeper into a winner (=increasing popularity)
- Advertising (social media, tv display, board)
- Recommendations by service staff
- Put the dish higher on the menu overview
- Change the name (meatballs, Grandma’s Traditional Homemade Meatpastry)
Winner: don’t change, standardize as much as possible
Loser: try to turn it into a sleeper(high gp, low pop)/runner(=low gp, high pop), or delete from menu (not always possible)
Popularity index = items sold per dish / total items sold of the complete menu x 100%
Noodle soup= 47/410 x100% = 11.5%
Gross profit per dish = selling price excluding VAT – item cost price excluding VAT
Noodle soup= €1,56 – €0.70 = €0.86
Menu cost of sales = items sold per dish x item cost price per dish
Noodle soup= 47 x €0.70 = €32.9
Menu sales value = items sold per dish x selling price excluding vat
Noodle soup= 47 x €1.56 = €73.3
Menu gross profit = menu sales value – menu costs of sales
, Noodle soup= €73.3 - €32.9 = €40.4
Percentage gross profit = menu gross profit / menu sales value x 100%
Noodle soup= €40.4 / €73.3 x 100%= 55.1%
Percentage cos = menu cost of sales / menu sales value x 100%
Noodle soup= €32.9 / €73.3 x 100% = 44.9%
Gross profit boundary = total menu gross profit : total items sold of the entire menu
Noodle soup= €371.25 : 410 = €0.91 avergage gross profit per dish
Popularity boundary=
100% − 𝑎𝑠𝑠𝑢𝑚𝑒𝑑 𝑝𝑜𝑝𝑢𝑙𝑎𝑟𝑖𝑡𝑦 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒐𝒑𝒖𝒍𝒂𝒓𝒊𝒕𝒚 𝒏𝒐𝒓𝒎 =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡 𝑑𝑖𝑠ℎ𝑒𝑠
Assumed popularity percentage is given/decided by management, and is the percentage that represents the maximum of total popular dishes. 25%.
100% − 30%
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑟𝑖𝑡𝑦 𝑛𝑜𝑟𝑚 = = 8.75%
8
Compare the popularity index per dish with the average popularity norm
Average cost percentage= total costs of sales menu / total sales value excl. VAT menu x 100%
€268.2 / €639.45 x 100% = 41.9%
Average gross profit per dish = total gross profit menu / total dishes sold
€371. = €0.91
Average spend per guests= item selling price excl. VAT(per dish) x item sold (per dish)
for all the dishes
Total selling price and items sold/ total dishes sold
€1.56 x 33 + €1.56 x 64 etc / 410= 1.56
3a. Menu engineering analysis including the food cost calculation per dish (Financial Management)
- discusses the menu engineering analysis within the theory assignment of the virtual version of Refresh.
Explain and link:
- Popularity and gross profit
- Winner, runner, sleeper and loser classification
- Overall cost of sales percentage
3b. Service blue print analysis (Hotel Business)
- apply the service blue print model to Refresh
The Refresh concept needs to be linked and translated into the official parts of this theoretical model:
- physical evidence,
- customer,
- contact person onstage & backstage,
- the support processes
4b. Refresh concept design based on the service blue print (Hotel Business)
- apply the service blue print model to Refresh for the first week of the new school year
The Refresh concept needs to be linked and translated into the official parts of this theoretical model and the chosen menu:
- physical evidence,
- customer,
- contact person onstage & backstage,
- the support processes
- discuss the differences between the blue prints for the standard concept of refresh and the own chosen concept of refresh
4. Advise for the near future – Assigned week: Monday October 12th up until and including Friday October 16th
4a. Full menu for a day of choice, including food cost calculations and effects on profitability (Financial Management)
selects a day of choice in the assigned week mentioned above and creates a full menu for:
- lunch and dinner: two pizzas, two pastas, two soups, 3 sandwiches, 1 lunch plate warm, 1 diner plate warm, 1 fresh salad.
It is allowed and advised to optimize the chosen menu from the theory assignment.
Per dish you make:
- a food cost calculation, including a cost of sales percentage.
The effects per dish on the overall cost of sales for Refresh are to be discussed, including an understanding as to how this number can be influenced. (Financial
Management)
,3c. Staff satisfaction (HR Management)
Discusses the staff satisfaction linked to:
- attitudes and,
- the service profit chain.
4c. Proposed improvements for staff satisfaction (HR Management)
-discusses proposed improvements for staff satisfaction linked to attitudes and the service profit chain.
,Assignment 3a: Menu engineering analysis including the food cost calculation per dish
Explain and link:
Menu engineering = about optimising your menu in relation to G.P and Popularity rating. It shows ratings among themselves.
It looks at two different elements:
- Gross profit (selling price – cost of sales/food cost)
- Popularity (how often is the dish sold relatively to the other dishes on the menu)
G.P.% > 57.2(100-42.8%(average cost percentage))% = G.P.rating Pop.Index > 8.75% Pop.Norm = Pop.rating
G.P.% < 57.2% = G.P.rating Pop.Index < 8.75% Pop.Norm = Pop.rating
Four distinctive classifications:
- Winner: dish with a high gross profit and a high popularity
- Loser: dish with a low gross profit and a low popularity
- Runner: dish with a low gross profit and a high popularity
, - Sleeper: dish with a high gross profit and a low popularity
How to change the classification:
Changing a runner into a winner (=increasing gross profit)
- You could leave an ingredient out (change recipe)
- Make smaller portions (no change in recipe)
- Increase selling price
- Delete the dish from the menu if COS is really high
- buy in bulk
- Cheaper ingredients
Changing a sleeper into a winner (=increasing popularity)
- Advertising (social media, tv display, board)
- Recommendations by service staff
- Put the dish higher on the menu overview
- Change the name (meatballs, Grandma’s Traditional Homemade Meatpastry)
Winner: don’t change, standardize as much as possible
Loser: try to turn it into a sleeper(high gp, low pop)/runner(=low gp, high pop), or delete from menu (not always possible)
Popularity index = items sold per dish / total items sold of the complete menu x 100%
Noodle soup= 47/410 x100% = 11.5%
Gross profit per dish = selling price excluding VAT – item cost price excluding VAT
Noodle soup= €1,56 – €0.70 = €0.86
Menu cost of sales = items sold per dish x item cost price per dish
Noodle soup= 47 x €0.70 = €32.9
Menu sales value = items sold per dish x selling price excluding vat
Noodle soup= 47 x €1.56 = €73.3
Menu gross profit = menu sales value – menu costs of sales
, Noodle soup= €73.3 - €32.9 = €40.4
Percentage gross profit = menu gross profit / menu sales value x 100%
Noodle soup= €40.4 / €73.3 x 100%= 55.1%
Percentage cos = menu cost of sales / menu sales value x 100%
Noodle soup= €32.9 / €73.3 x 100% = 44.9%
Gross profit boundary = total menu gross profit : total items sold of the entire menu
Noodle soup= €371.25 : 410 = €0.91 avergage gross profit per dish
Popularity boundary=
100% − 𝑎𝑠𝑠𝑢𝑚𝑒𝑑 𝑝𝑜𝑝𝑢𝑙𝑎𝑟𝑖𝑡𝑦 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒐𝒑𝒖𝒍𝒂𝒓𝒊𝒕𝒚 𝒏𝒐𝒓𝒎 =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡 𝑑𝑖𝑠ℎ𝑒𝑠
Assumed popularity percentage is given/decided by management, and is the percentage that represents the maximum of total popular dishes. 25%.
100% − 30%
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑟𝑖𝑡𝑦 𝑛𝑜𝑟𝑚 = = 8.75%
8
Compare the popularity index per dish with the average popularity norm
Average cost percentage= total costs of sales menu / total sales value excl. VAT menu x 100%
€268.2 / €639.45 x 100% = 41.9%
Average gross profit per dish = total gross profit menu / total dishes sold
€371. = €0.91
Average spend per guests= item selling price excl. VAT(per dish) x item sold (per dish)
for all the dishes
Total selling price and items sold/ total dishes sold
€1.56 x 33 + €1.56 x 64 etc / 410= 1.56
