Reference no: EM132485071

DHM501 Managing Perishability and Market Fluctuations - Diploma in Hospitality Management

LO1: Plan, design and cost menus and beverage lists which meet the requirements of a hospitality business.

LO2: Identify and implement important factors in menu planning and beverage list development (e.g. seasonal aspects, staff capabilities, market identification, supply and demand)

LO3: Demonstrate an understanding of perishability and budgeting through applying student-designed menu plans in the hospitality sector.

Scenario

You have a new position as manager of a restaurant (not one of the cafés from Assessments 1 and 2).

The restaurant owner has just been granted a liquor licence and she wishes to develop a new special menu to improve profitability and appeal to a wider target market of tourists and New Zealanders who enjoy dining out. She has a staff member who has limited experience as a chef and one other staff member who has basic cooking skills. All other staff only have experience of working as front of house in the restaurant but limited bar experience. The owner would like you to put together a wine and beer list as well as the special menu, taking into account the experience and ability of the current staff.

Part 1
You are putting together the new special menu which comprises one entrée, one main dish and one dessert.

Using the recipes attached in the appendix, choose one entrée and one main that you think would be suitable for the restaurant. Decide on a dessert, which should be one of those listed in the appendix - either one with a recipe provided and made in the restaurant or one bought in ready- made. Before you start working on the Part, submit your choices to your tutor for approval.

i) Justify why you chose each dish. You must discuss your target market, seasonal ingredients, staff capabilities and supply/demand for each, based on the scenario.
ii) Explain how you will minimise perishability and maximise the shelf life of the ingredients for your dishes. You must provide at least four points, and these must be relevant to your chosen dishes and ingredients.
iii) Identify the ingredients for your dishes and the supplier you will use for them and for your dessert if bought in ready-made. Cost your ingredients (see note * below) and calculate the approximate cost price per dish. You must show how the cost price for each dish was calculated.
iv) Choose 12 wines and six beers for your beverage list. Identify the wines/beers you have chosen i.e. specific type, maker and the supplier. Ensure that there is a balance of wines. Provide reasons for each of your choices. Reasons must include but are not limited to: target markets, demand and supply, food matching. (Note: Copying a beverage list from the Appendix will not answer this question)
v) Calculate an estimated selling price of each dish and each drink. Round to the nearest dollar. The restaurant will serve wine by both the bottle and by the glass. Base the selling price on a standard industry practice of a food cost pricing of 33.33% and beverage costs at 30%. Show all calculations.
vi) Determine how competitive your pricing is compared to that of TWO of the competitors, whose menus are attached at the end of the appendix. For each of your dishes, show in a table your estimated selling price and the prices charged by the competitors for the same or similar dish. Decide if you will adjust your prices (competitive pricing) and justify any changes.
Compare the price you want to charge for one red wine, one white wine, and one beer with those on the attached wine lists (one for each of TWO competitors). For each beverage, show in the table your prices and the prices charged by the competitors. Decide if you will adjust your prices (competitive pricing) and justify any changes.
vii) Identify any additional staffing requirements and/or training for the new menu and for serving alcoholic drinks.

Part 2
i) Design your own physical menu which can be given to customers for your daily special (this includes entrée, main and dessert) and a menu for your drinks.
ii) Describe three methods you will use to sell and promote the new menu. You must provide at least two points for each method.
iii) You are aware that some times are quieter than others. Describe two methods you can use to improve yield management.

Part 3
The restaurant has been running your special menu for four weeks and the owner is not meeting the profit targets she would like.

i) Describe the methods you will use to evaluate the success of your menu. You must describe at least three methods and give two points for each method.
ii) Describe what specific changes you can make to your menu to improve profitability i.e. discuss specific items from your food and beverage menus. You must describe three specific changes.

Part 4
i) Using the special menu you have created from Part 1 and the costings for your dishes after competitive pricing adjustments, budget your cost of goods sold for one year for the special menus. Your budget will be based on the following:

• You estimate that 50% of your sales will come from the Special Menu. 25% of customers will purchase entrees, 60% will purchase a main course, and 15% will purchase a dessert.
• You estimate that the restaurant is occupied at 70% capacity each day for each day of the year that the restaurant opens. This is based on the number of seats and the days of opening for the restaurant you have chosen for Assessment 2 and 3.
• Assume that the special menu costs are the same each day for each of the dishes.

ii) Calculate the projected/budgeted gross profit (excluding labour and facilities/utilities) for the special menu for one year from the cost to the mark-up.
iii) Calculate a staff cost of 30% of projected gross profit as calculated in 4ii
iv) Calculate a facilities cost of 12% of projected gross profit as calculated in 4ii.
v) Calculate budgeted net profit for the special menus.

Attachment:- Managing Perishability and Market Fluctuations.rar