Menu Engineering

In: Business and Management

Submitted By siahsiah
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Take-home applied exercise (1) due in week 3 (Refer to F&B abstract on pg. 49 of the Text Book).

Rosabella Restaurants is a popular Italian restaurant chain located in the south-western United States. Typical Italian food such as ravioli, lasagne, and fettuccine Alfredo can be purchased at a reasonable price at these family-friendly restaurants. All of the restaurants are owned and operated by Rosabella Restaurants, Inc. Ms. Jennifer Churchman, a regional controller for Rosabella Restaurants, has seen decreasing profits from one of the properties in her region and is in the process of determining the cause of this problem. Ms. Churchman requested financial information from the property, including a food menu abstract, to get the entire picture of the restaurant’s operations. The restaurant general manager provided all of the requested information. Below is the food menu abstract for dinner entre´es over the last three months.

Ms. Churchman has asked you to analyze the food menu abstract and given you the following questions to answer:

QUE S T I O N S: 1. Do there appear to be any abnormalities with the report? Look for any items that seem unusual, such as item food cost (1/2 mark). 2. Analyse the report. Which items have the highest contribution margin? Use examples to critique this figure in-terms of its popularity (1mark). 3. Which items have the lowest contribution margin? Use examples to critique this figure in-terms of its non-popularity (1mark). 4. Which is the most popular item? Critique its CM in relation to other items (1mark). 5. The Chicken Marsala item is a bad seller – what can we do about this? Should this be removed completely? (1.5 marks). 6. Should you sell more of Grilled Salmon and less of Lasagne? Discuss why or why not (1.5 marks). 7. What advice can…...

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