Calculations-justifications behind the new pricing strategy


Assume that you are a manager at a full-service restaurant, “Ciao” in Downtown Summerlin. The restaurant has been operating for approximately a year and as a manager who has just taken a Food & Beverage Cost Control Analysis, you plan to analyze the performance of each item on your Menu. Conduct a Menu Engineering Analysis by using the data provided in Table 1 and make recommendations (change the menu/remove items/adjust price etc.) based on each item’s performance. Eg: If there’s a need for change in menu item pricing, indicate the calculations and justifications behind the new pricing strategy. Report your findings and provide critical and compelling justifications behind each suggestion.

The project will be graded on:

1. Calculations & organization (separate sheet for each meal course) of the menu item analyses.

2. Thoroughness of the report.

3. Critical reflections on your understanding of the Menu Engineering Analysis and the performance of each menu items.

4. Formatting. Your report needs to be in APA 6th Edition format. (Font 12, Times New Roman, Double Spaced)

If you decide to work in groups, the maximum number of students to a group is 4. A hard copy of the project is due on 12/2/2014, during class time. I will not accept projects submitted after the dateline.

Table 1 : Menu Item & Beverage Item List

Menu Items    Number Sold    Cost of Item ($)    Selling Price ($)
Chocolate Macadamia Brownie    120    1.23    8.50
Strawberry Coppa Gelato    144    1.20    8.50
Chocolate Hazelnut Mousse    87    1.60    5.80
Lemon Crush Cake    92    1.30    6.50
Peanut Butter Pie    103    1.40    6.50
Tiramisu    130    1.25    5.85
Pineapple Cheesecake    201    1.23    6.00
Bread Pudding    250    1.35    5.25
Grilled Beef Tenderloin    320    8.45    25.50
Roasted Duck w/Balsamic Glaze    120    8.23    20.95
Rack of Lamb    89    11.68    29.95
Seafood Gumbo & Salad    70    3.24    12.95
Sauteed Shrimp & Scallops w/Linguini    54    6.78    19.95
Salmon (Grilled or Blackened)    121    5.70    19.95
Chicken Breast w/Herbs    77    4.54    18.50
Roast Loin of Pork    115    4.40    17.95
Angus Beef Burger w/Bacon & Cheese    45    4.19    15.95
Skirt Steak Frites    54    6.00    17.95
Boiled Diver Scallops    68    9.00    20.90
Pasta Carbonara    45    3.75    16.95
Cornish Game Hen    120    7.00    21.95
Roasted Venison    130    6.00    18.95
Half Rack of Baby Back Ribs    99    7.25    19.95
Spinach & Cheese Ravioli    76    4.23    15.95
Penne Arabiata    43    3.24    12.95
Chicken Caesar Salad    112    3.00    10.95
Pumpkin Soup    190    .80    7.50
Fried Calamari    223    3.00    10.95
Shrimp Marinara    127    3.45    11.95
Baked Polenta    129    2.75    9.95
Mussels & Clams Calabrese    154    5.25    16.95
Eggplant Roulade    120    2.75    9.95
Mozzarella Triangles    201    3.45    6.95
Bocconcini Balls    250    3.00    8.95
Beverage Items    Number Sold    Cost of Item ($)    Selling Price ($)
CABERNET SAUVIGNON
Clos Du Val-Napa Valley    12    23.00    50.00
Inglenook-Napa    8    15.00    45.00
Joseph Phelps-Napa    20    20.00    48.00
Louis Martini    14    10.00    30.00
CHARDONNAY
Byron    4    10.00    24.00
Callaway    6    9.00    20.00
Cht Ste Michelle    10    12.00    25.00
Clos Du Bois    8    8.00    18.00
BOTTLED BEER
Budweiser     120    .70    4.00
Sam Adams Boston Lager     112    .65    4.50
Sierra Nevada Pale Ale     90    .80    5.00
Corona      103    .84    4.00
Bud Light     54    .88    4.00
Coors Light     77    .73    4.00
Guinness    110    .90    5.50

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