Indirect Cost Factors In Menu Pricing

In the discussion - Indirect Cost Factors in Menu Pricing – by David V. Pavesic, Associate Professor, Hotel, Restaurant and Travel Administration at Georgia State University, Associate Professor Pavesic initially states: “Rational pricing methodologies have traditionally employed quantitative factors to mark up food and beverage or food and labor because these costs can be isolated and allocated to specific menu items. There are, however, a number of indirect costs that can influence the price charged because they provide added value to the customer or are affected by supply/demand factors. The author discusses these costs and factors that must be taken into account in pricing decisions. Professor Pavesic offers as a given that menu pricing should cover costs, return a profit, reflect a value for the customer, and in the long run, attract customers and market the establishment. “Prices that are too high will drive customers away, and prices that are too low will sacrifice profit,” Professor Pavesic puts it succinctly. To dovetail with this premise the author provides that although food costs measure markedly into menu pricing, other factors such as equipment utilization, popularity/demand, and marketing are but a few of the parenthetic factors also to be considered. “… there is no single method that can be used to mark up every item on any given restaurant menu. One must employ a combination of methodologies and theories,” says Professor Pavesic. “Therefore, when properly carried out, prices will reflect food cost percentages, individual and/or weighted contribution margins, price points, and desired check averages, as well as factors driven by intuition, competition, and demand.” Additionally, Professor Pavesic wants you to know that value, as opposed to maximizing revenue, should be a primary motivating factor when designing menu pricing. This philosophy does come with certain caveats, and he explains them to you. Generically speaking, Professor Pavesic says, “The market ultimately determines the price one can charge.” But, in fine-tuning that decree he further offers, “Lower prices do not automatically translate into value and bargain in the minds of the customers. Having the lowest prices in your market may not bring customers or profit. “Too often operators engage in price wars through discount promotions and find that profits fall and their image in the marketplace is lowered,” Professor Pavesic warns. In reference to intangibles that influence menu pricing, service is at the top of the list. Ambience, location, amenities, product [i.e. food] presentation, and price elasticity are discussed as well. Be aware of price-value perception; Professor Pavesic explains this concept to you. Professor Pavesic closes with a brief overview of a la carte pricing; its pros and cons.

Would a Restaurant Menu Item by Any Other Name Taste as Sweet?

The purpose of this paper is to examine the use of words on a restaurant menu, and to evaluate the impact that they have on the selection of menu items. The research comprised two distinct parts. First, four focus groups were held examining responses to five menus, each with the same menu items but using different wording. The results from the focus group analysis were used to develop a survey which was more widely distributed. From the focus group it was revealed that the occasion and participants in the dining experience influence the wording for menu item selection. Respondents discussed the mystique of the menu and confirmed a desire for menu items that would not normally be prepared at home. It was also of interest the "mouthwatering" effect that the words haw on potential customers and what a strong persuader these words were. The survey reinforced the focus group research in many ways, also stressing the positive effect of descriptive words such as "Tender'; "Golden" and "Natural" to the choice of menu items. The research has identified the importance of the choice and use of words in the design of a menu that operations management need to be aware of

Vegetarians: A Typology for Foodservice Menu Development

There is currently a lack of research about the needs of vegetarians, from a practitioner or academic perspective. This paper contributes to filling this research gap, by discussing the needs of vegetarians who dine out and their current difficulties in participating in the dining experience, in the present context. Specifically, it is argued that the typology of vegetarians presented in this paper, based on their motivations to adopt the chosen diet, might prove useful for restaurants in order to understand the vegetarian guest and develop menu items and services that will better cater to their needs. Recommendations for practitioners and future research areas are presented.

Labor and Menu Category: Effects on Analysis

Menu analysis is the gathering and processing of key pieces of information to make it more manageable and understandable. Ultimately, menu analysis allows managers to make more informed decisions about prices, costs, and items to be included on a menu. The author discusses If labor as well as food casts need to be included in menu analysis and if managers need to categorize menu items differently when doing menu analysis based on customer eating patterns.

Placement for Profit: Menu Item Arrangement on Customer-Activated Computer Screens

Can profitable menu items be placed on a computer screen where they will be selected more readily than other items? The author examines whether printed menu theories and techniques can be applied, with the same results, to a computer menu screen

Proteomic and glucosinolate profiling of rapeseed isolates from meals produced by different oil extraction processes

Peer reviewed

Whey protein isolate decreases murine stomach weight and intestinal length and alters the expression of Wnt signalling-associated genes

Acknowledgements K. N. N. was supported by the Teagasc Vision Programme on Obesity (RMIS5974). L. M. was supported by the Teagasc Walsh Fellowship. J. R. S. was supported by a 1000-talents professorship from the Chinese government. The funding bodies had no input on the design of the study or in the interpretation of the data. The authors’ contributions are as follows: L. M., J. R. S., J. F. C. and K. N. N. designed the study; K. N. N. and J. F. C. obtained ethical approval for the study; L. M. performed the experiments; L. M. and J. R. S. analysed the data; L. M. generated the figures. All authors contributed to the drafting of the manuscript. All authors approved the final version for submission. The authors declare that there is no competing interest.

How long have adult humans been consuming milk?

Lactase is the enzyme that breaks down the milk sugar lactose, and in most mammals, including most humans, lactase activity is down-regulated after the weaning period is completed. However, in about 35% of adults worldwide, lactase continues to be expressed throughout adulthood, a feature termed lactase persistence (LP). Genetic evidence indicates that LP is a recent human adaptation, and its current geographic distribution correlates with the relative historical importance of dairying in different human populations. Investigating archaeological evidence for fresh milk consumption has proved crucial in building an account of the joint evolution of LP and dairying. A powerful technique for investigating food processing, including milk processing, in ancient populations is lipid residue analysis on archaeological pottery. We review here the archaeological and genetic evidence available that have contributed to a better understanding of the gene-culture co-evolution of LP and dairying.