SIT22 SITHKOP002 Plan and Cost Basic Menus LG V2-0 PDF

Learner guide
Plan and cost basic menus

SITHKOP002
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Contents
Overview ........................................................................................................ 3
Section 1: Identify customer preferences ....................................................... 3
Section 2: Plan menus ................................................................................... 9
Section 3: Cost menus ................................................................................. 31
Section 4: Write menu content ..................................................................... 51
Section 5: Evaluate menu success .............................................................. 61
Glossary ....................................................................................................... 66
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SITHKOP002 Plan and cost basic menus
Overview
Menu planning and costing is a journey of discovery.
What do your customers really want? How can you meet their needs and your
organisation’s?
How much do meals cost to make? How much should you sell them for?
And, perhaps most importantly, how can you help make your business a success?
It’s time to take your first step on the path to learn the answers to these questions and
more.
Let’s look at what you will learn on completion of this unit.
Section 1: Identify customer preferences
Section 2: Plan menus
Section 3: Cost menus
Section 4: Write menu content
Section 5: Evaluate menu success
Section 1:
1 Identify customer preferences
In this section you will learn the following.
• How to choose menu items to meet customer preferences.

• How to identify current customer profiles.
• How to analyse the food preferences of the customer base.
Risky business!
Not planning and costing your menu properly is risky business.
Click on the chef to find out more.
Hi, I’m Carly and I’m a chef at The Tamino Restaurant in the CBD. I’m going to be working
with you during this unit.
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Planning and costing menus doesn’t have to be difficult, but you’d be amazed at how
many chefs do a bad job of it and end up losing money! I’ve heard them say, ‘I just work
out how much the food costs and triple it!’ and ‘I just sort of guess around my margins and
hope the customers will pay what I’m asking!’ Or even, ‘I’m supposed to cost the menus?
Uh oh …’
Don’t be like this. Get yourself on the path to profit by learning how to plan and cost your
menus properly.
First, you need to get to know your customers. Click to the next screen to get started.
Who are your customers?

Infants, children, adolescents, young adults and older people all have different
preferences. The better you know your customers, the easier it is to choose menu items
you know they’ll like.
Click on the pictures to see some other customers you may need to consider.
 Business people
 Business to business (B2B)
 Event or function customers
 Locals
 Students
 Athletes
 International tourists
 People from different socio-economic groups
 People from specific cultural or religious groups
 People with particular nutritional interests
When we picture customers, we usually visualise people coming and going from
restaurants, cafés, fast food outlets, food courts, etc. However, there are some customers
who aren’t so free to pick and choose for themselves.
Click to the next screen to find out who they are.
Captive audience
These people rely on you to prepare and cook meals for them on a daily basis. If you’re
catering for them, closely follow the Dietary Guidelines for Australians to ensure you
provide the required nutrients in the recommended proportions.
Click on the dot points to find out who they are.
 Defence forces (Army, Navy, RAAF)

 Miners
 Prisoners
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 Hospitalised patients and residents of aged care facilities

 Passengers on aircraft and cruise ships
 Infants, toddlers and pre-schoolers in child care centres
 Children, adolescents and university students residing on campus or attending
camps
 People of diminished capacity in boarding homes
What’s your current customer profile?

A customer profile is a ‘snapshot’ of your food business’s most frequent customers. You
need to know who they are. It would be a crime against profits if you didn’t! If you don’t
have a current database, you can interview customers or ask them to complete surveys.
What questions do you need to ask?

Click on the suspects to find out!
What’s their social and cultural background?

Religion, values, customs, family of origin all have a large influence on the types of foods
customers eat or don’t eat. Be aware of this when determining what to put on the menu.
Are they male or female?

There are gender differences when it comes to food choices. Typically, women eat
smaller, lighter, more nutritious meals than men, who tend towards higher quantities of red
meat, eggs, and foods high in salt and sugar.
How old are they?

The type of food customers eat often depends on their age.
For example, 18- to 24-year-olds tend to eat out more often than other age groups, but
prefer quick service foods. Older people may have more time on their hands and be
willing to wait longer for higher quality (and have the money to pay for it!)
What’s their income?

Wealthy customers have more ‘buying power’. That is, they have the ability to more easily
afford higher priced foods. Well-travelled customers on high incomes are more likely to try
exotic more expensive foods, whereas people with lower incomes tend towards safer, less
costly options.
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Hot tip
Be sure to check with your organisation to learn what sources of information they use to
generate customer profiles. Familiarise yourself with the technological skills necessary to
access customer records, including contact details, past bookings, current bookings,
records of requests and conversations, and accounts payable and receivable.
What do your customers prefer?

Now that you know more about your customer base, it’s time to analyse their food
preferences.
Click on the tabs to find out how.
What are contemporary eating habits?

Keep up with the times. Read industry magazines. Get online. Check out social media.
Find out what’s hot and what’s not in terms of eating trends and preferences generally.
Then, narrow it down to your customer profile.
What influences them?

If there’s a particular cultural or ethnic influence in your locality, be sure to consider it
when developing your menu. If your customer base is interested in trying international
cuisine, be sure to provide interesting dishes from other countries.
What are your most popular menu items?

Analyse your sales data. This tells you which dishes your current customers like the most.
Keep a record of the dishes that sell well and those that don’t so you can make strategic
changes. (You’ll learn more about how to do this in section 5.)
Do they want fast or slow food?

The ‘slow food’ movement has taken off in recent years. Some customers are willing to
wait longer for higher quality meals. Other customers definitely aren’t! These include
families with very young children, young couples about to catch a movie, or teens
grabbing a quick bite before a night out.
Do their tastes change according to the season?

On a winter’s day, nothing’s more comforting than a bowl of hot pumpkin soup
accompanied by a buttered roll fresh out of the oven! But do you think anyone will order
this when it’s 40° outside?
Probably not. However, the cold prawn, mango and avocado salad with coriander and
lime dressing will fly out the door. Keep in mind what people crave according to the
season. Adjust your menu accordingly.
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Do they enjoy a variety of food products?

Be careful when adding new food products and changing your menu. While variety is the
spice of life, you don’t want to replace a well-loved dish with a flop. Test out the waters by
offering new meals as daily specials over a period of time. If they’re popular, add them to
the menu.
Note...
Again, make sure you check with your organisation to find out how they learn their
customers’ food preferences. Where do they get their data?
End of section
You have reached the end of section 1.
Click to the next section to continue.
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2 Section 2:
Plan menus
• How to generate and assess ideas for menus, dishes or food production ranges.
• How to develop suitable menus based on organisational service style and cuisine.
• How to include a balanced variety of dishes or food production items.
Failing to plan is planning to fail.

You can’t just ‘wing’ menu development. You need planning and organising skills to
access and sort all information required for menu planning and to coordinate a menu
development process.
Click on Carly to learn what’s involved in menu planning.
Before you begin menu planning, you need to ask yourself some important questions.
• What’s your service style?

• What type of cuisine do you serve?
• What’s the sequence of courses?
• What type of menu do you need?
• How do you generate a range of ideas for menus?
• How do you assess the sample dishes?
• Who do you discuss the dishes with?
You’ll learn the answers to these questions and more throughout this section as we go
through menu planning.
What’s your service style?

Your service style depends on your customer base. It determines not only your menu and
food prices, but also your layout and décor.
Click on the pictures to learn about different service styles.
$ Fast food
These outlets abound in food courts and vary from international franchises to cute kiosks,
but they all have quick service and cheap prices!
Customers order, pay and collect their food at a counter, drive-through or walk-up window.
Then, either dine in or take away.
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$$ Café or casual dining

Customers order at the counter and sit down to eat at a table, as they would in a fast food
restaurant. However, they can expect healthier food of higher quality.
$$$ Bistro dining

Wait staff take customers’ orders at their table in a ‘sit down’ restaurant. There’s a wide
variety of healthy, high quality food to choose from in a family-friendly atmosphere.
$$$$ Fine dining

Leave the kids at home! Chefs with years of experience provide elaborate (often five-
course) meals and expansive wine lists in an elegant atmosphere.
Self-serve
Customers help themselves from a buffet. These can be free-flowing, where customers
move around (hotel breakfast buffet) or queue along a straight counter with an optional
POS at the end.
Sometimes, as is the case in a cafeteria or carvery, there may be food attendants on hand
to serve from behind bain-maries.
We deliver!
This includes not only pizza home delivery and hotel room service, but also tray service in
hospitals and on airplanes.
What type of cuisine do you serve?

Modern Australian cuisine mirrors our rich, multicultural society. We combine a wide
variety of fresh, foreign ingredients to create our own special dishes. Not only that, we
devote entire restaurants to authentic international cuisine.
Here’s a list of some common cuisines served in Australia.
• Modern Australian • Vietnamese
• Seafood • Korean
• Lebanese • Chinese
• Greek • Indian
• Italian • Mexican
• Turkish • African
• Thai • Classical French
• Japanese
No matter what type of cuisine you serve, the menu layout and order of courses is usually
based on the classical French one.
Click to the next screen to find out more.
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What’s the classical sequence of courses?

Why do we start with appetisers and finish with dessert? In the 1880s, world-renowned
French chef Georges Auguste Escoffie documented the rules, customs and etiquette of
dining. These still form the basis for today’s menus.
Click on the 15 classical English course names to see their French equivalents.
English French
Cold appetiser Hors d’oeuvre froid
Soup Potage
Hot appetiser Hors d’oeuvre chaud
Eggs or farinaceous Oeuf et farineux
Fish Poisson
Cold entree Entrée froid
Hot entree Entrée chaud
Sherbet Sorbet
Main course with vegetables Relevé ou pièce de résistance
Roast with salad Rôtii et salade
Vegetables (hot or cold) Entremet de légumes
Sweets (hot) Entremet chaud
Sweets (cold) Entremet froid
Savouries (hot or cold) Entremet au fromage
Dessert Dessert
What are the characteristics of a classical menu?

• Classical menus are very varied.
• Course temperatures alternate between cold and hot.
• Courses progress from savoury to sweet.
• There are lighter courses in the beginning, heavier courses in the middle, and light
ones again at the end.
• Toward the main course, portions become more substantial and richer.
• The sorbet is positioned to cleanse and prepare the palate for the main course.
• The main course in the centre of the pattern is the highlight of the meal.
What’s the modern sequence of courses?

Today’s customers no longer expect a large choice of courses on a menu. Three courses
are enough to keep modern diners happy.
Click on the menus to see examples of modern course sequencing.

 Entree
 Main course
 Dessert with tea/coffee
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Why the change from classical to modern menus?

A brief history of 20th century menus
1. During WWI, chefs combined courses to reduce menus, due to food rationing and
labour shortages.
2. They further reduced the classical menu for similar reasons during the Depression
and WWII.
3. Recent factors include the following.
 Costs required to sustain large menus.
 Lack of time for customers to enjoy long meals.
 People require less food due to mechanisation and increased education on the
negative health effects of overeating.
 Introduction of food from many cultures that don’t follow menu sequencing.
What type of menu do you need?

Trends, customers and business expectations are in a constant state of flux. A fresh
perspective on your organisation’s menu could be in order. There are four main types.
• À la carte
• Table d’hote
• Function
• Cyclical
You’ll learn more about each one over the next few screens.
À la carte
These menus, usually printed on quality card and bound, are the most popular. They’re
found in hotels, restaurants cafes, pubs, bistros and fast food outlets. You cost each dish
separately and cook to order to produce elaborate meals for individuals or small parties.
Click on the à la carte menu to find out more.
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Click on the tabs to find out more about this style of menu.
Characteristics
• Each menu item is individually priced.
• There are three courses.
• There are several dishes to choose from in each course, allowing customers to select
based on appetite and budget.
• Traditionally, the dishes are of a single portion style (rack of lamb, steak, side of duck,
etc.).
Advantages
• Customers choose their own dishes.
• Customers only pay for what they order.
• The enterprise receives a pre-determined profit on each dish.
• It allows chefs to use a wide range of skills, increasing job satisfaction.
• Menu needs to be changed less frequently than with other menu types (eliminates
menu fatigue).
• Allows for inclusion of daily specials (carte du jour) so the chef can utilise seasonal
produce.
Disadvantages
• Customers usually wait longer for food cooked to order.
• More food wastage given the large amount of perishable food stock required.
• More storage space and greater capital outlay required for larger stock of foodstuffs.
• More staff with greater skills required in the kitchen and front of house, resulting in
higher labour costs.
• More mise en place time required for preparation of base ingredients.
• To compensate for the disadvantages, the prices on an à la carte menu are generally
30 to 50% higher than on other menus. This covers the extra expenses associated with
labour costs as well as the preparation and storage of a wider variety of foods.
Table d’hote
This ‘set menu’ is fast, uncomplicated and suits high volume enterprises. It’s common
where large numbers of diners (conference groups, tourists, etc.) arrive at once, but pay
as individuals. The food is often pre-prepared and sometimes pre-cooked. The use of
table d’hote menus varies greatly. They can stand alone or be offered in conjunction with
à la carte menus. Check to make sure you understand how your organisation uses them.
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Click on the table d’hote menu to find out more.
Characteristics
• Price is fixed (even if a customer doesn’t eat all courses).
• It’s a set menu (usually of three courses) which forms a complete meal.
• There are usually two (sometimes three) dishes to choose from within each course.
Advantages
• Limited choice minimises food waste.
• Customers don’t have to wait long for their meals. This helps with second sittings on
many tables, if required.
• Customers know how much their meal will cost, so there are no surprises when the bill
arrives.
• The limited menu is easy to develop, cost, order supplies for and serve because it
requires less storage space and smaller stock runs.
• Short preparation time reduces staff numbers and labour costs.
Disadvantages
• Customers have limited choice of dishes.
• It doesn’t cater well for special diets (gluten-free, vegetarian, etc.).
• The restricted choice makes it difficult to balance menu properly.
• Kitchen staff may become bored preparing such a limited variety of dishes.
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• Pre-prepared and pre-cooked food deteriorates during service time, reducing customer
satisfaction and food safety if not handled correctly.
Function
Function or banquet menus are used in function centres, hotels, convention centres,
reception centres, etc. They’re customised for a private party or formal occasion paid for
by a host. Guests sit down together and eat at a pre-determined time. Restaurants,
bistros, brasseries and hospitals also use function menus when catering for large parties
of people.
Click on the function menu to learn more.
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Characteristics
• As in the table d’hote, there’s a set menu at a set price. However, the cost isn’t listed
on the menu as the host usually pays for everyone.
• Sometimes a function menu offers diners a choice between two options, or two meals
are served alternated around the table.
• Sometimes, there’s no choice at all.
• The host or organiser pre-determines:
 number of people attending
 time of arrival
 time of departure
 number of courses
 the menu (from a number of options).
Advantages
• Caters for large functions where everyone sits down together and requires
simultaneous service within a short time frame.
• You know numbers in advance, so can calculate the exact cost per head before the
function.
• This reduces catering costs (staffing, food ordering, preparation and service).
• Food wastage is kept to an absolute minimum.
Disadvantages
• Sometimes the pre-determined course service times don’t run strictly to plan due to
speeches, auctions, presentations, etc. Food quality may deteriorate while being kept
in a holding pattern.
• The limited choice doesn’t cater to special diets or requests (gluten-free, vegetarian,
etc.) unless prior notification is provided.
• The restricted choice can make it difficult to properly balance the menu.
Cyclical
The institutional catering sector, whose customers are a ‘captive audience’, use these
menus. Sometimes, private clubs, cafés and restaurants have repeat clientele. Their
whole menu or some parts of it (daily specials, roasts, fish, soups, desserts, etc.) may be
cyclical.
Click on the cyclical menu to learn more.
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Characteristics
• An organised series of set menus that rotate from day to day or week to week.
• Caters for all meal periods throughout the day (breakfast, morning tea, lunch, afternoon
tea, dinner and supper).
• The cycle period (glossary) repeats itself after a set time.
• Provides variety and a nutritionally balanced diet when catering to a captive audience
or repeat clientele.
Advantages
• Provides structured variety (glossary) and nutritionally balanced meals three times a
day, seven days a week, 52 weeks of the year.
• Prevents boredom.
• You can fine tune and standardise the menu over a period of time due to the repetition.
• Provides a stable structure from which to regulate standards, labour use and staff
training.
• Allows for set production schedules, bulk buying, accurate forecasting, ease in
purchasing and other cost-saving benefits associated with knowing exactly what you
need in the future. This is important for institutional enterprises on tight budgets.
Disadvantages
• Initial planning and setup is complex and time-consuming.
• The menu’s repeat nature can become tedious and lacking in challenge for staff
preparing and serving the food.
• If the cycle period is too short, the menu can become predictable for customers.
Other menus
In addition to the four main menu types, there are many others you can use.
Click on the icons to find out what they are.
Buffet
This is a list of hot and cold food on display for self-serve or partially assisted service.
Smorgasbord
Scandinavian style buffet featuring preserved fish, pâté, smallgoods, breads and cheese.
The food is presented in a simple manner.
Degustation
This five to ten course set menu is an alternative to à la carte. It offers small tastes of
many different menu items at a set price.
Ethnic
Use this one for a function, event, or festival with international flavour.
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Cocktail
This is a list of hot and cold bite-sized foods customers can pick up and eat at a stand-up
function.
Theme
This menu celebrates a particular day (Christmas, Valentine’s Day, Mother’s Day, etc.)
and the food fits the theme.
Novelty
This is similar to a theme menu, but set around a Black & White or Masquerade ball which
can happen at any time rather than on a particular calendar day.
Carte du jour
This is a list of daily or seasonal specials on a card or board. It’s often presented in
conjunction with other menu types.
Product range
You may also find there are menus for a food product range such as patisserie products,
specific cuisines, dishes, etc.
How do you generate a range of ideas for menus?

Talk with colleagues, customers and sales representatives. Adapt recipes from trade
magazines and recipe books. Go out for a meal! Then, get ready to turn your ideas into
reality.
Click on the checkboxes to find out how.
 List all of your dish ideas on paper.

 Sort them into a draft menu.
 Check feasibility. (More on this shortly.)
 Identify, source, and purchase all required ingredients.
 Prepare, cook, and present the sample dishes.
 Assess the sample dishes. (More on this shortly.)
When generating your ideas, make sure the dishes meet the needs of both the
organisation and your customers. Let’s learn how to assess this over the next couple of
screens.
How do you check feasibility?

Make sure there aren’t any organisational constraints or other factors that could stop you
from producing the dishes profitably and to high standard.
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Click on the checkboxes to find out if your dishes are feasible.
 Dishes match the organisation’s menu type, service style and cuisine.
 Dishes match customer preferences according to sales data and customer profile.
(More on sales data in section 5.)
 Dishes offer something unique to create an edge over competitors in the same
location.
 Dishes match staff skill levels (simple enough to produce to high quality, yet
complex enough to keep staff interested).
 There’s enough staff on hand to produce the dishes within specified timeframes.
 There’s enough bench and storage space in the kitchen to produce the dishes.
 There’s enough small and large fixed equipment to produce the dishes during peak
service times.
 Dishes are cooked using a variety of cooking methods. (This helps ease the load on
equipment, too.)
 There are enough fresh, high quality ingredients available at a reasonable price.
(Meeting this requirement may mean changing your menu according to the seasons
and/or sourcing local suppliers.)
 The dish is profitable. (More on this in section 3.)
Hot tip
Sales information is very useful when planning menus and checking their feasibility. It
helps clearly identify the dishes your customers like and those they don’t as well as which
periods of the year are busy and which are quiet. All this data assists with ordering,
rostering and planning.
How do you assess the sample dishes?

Assess the sample dishes to make sure you’ve included a balanced variety for the style of
service and cuisine. This means checking that your menu has both culinary and nutritional
balance. This involves four key aspects.
• Colour
• Size and shape
• Taste
• Texture
You’ll learn more about how to achieve culinary balance over the next few screens.
Colour
Beautiful presentation enhances the visual appeal of your dishes. Use a variety of colours.
Avoid repeating a similar colour throughout the dish or, more importantly, across several
dishes on the menu.
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Click on the pictures and discover some do’s and don’ts.
Too much green! You could improve this dish by adding red cherry tomatoes, purple
cabbage, orange carrots, white ranch dressing and a sprinkle of nuts for garnish.
Too much brown! You could improve this dish by adding a colourful mix of fresh
vegetables (steamed broccoli, red capsicum and carrots) as well as a lighter coloured
sauce.
This dish is beautifully presented using a range of colours. To work with colours, develop
a mental picture of each item on the plate (main, sauces, accompaniments, vegetables,
etc.) and ensure you add variety.
Size and shape

Vary the sizes and shapes of each plate’s components as well as the dishes on the menu
as a whole. This adds to the overall presentation and visual appeal.
Click on the pictures and discover some more do’s and don’ts.
 This plate has too many chunky, single portion items!

 These items are all small and perfectly cut. There’s no variation!
 Spread differently shaped items out on the plate.
 Stack differently shaped foods on top of each other to give the dish height.
Taste
Click on Carly to find out more.
Choose dishes for your menu which provide a variety of flavours (strong, mild, bland,
subtle, salty, sweet, tart, acidic and bitter). Ideally, it’s best not to repeat strong flavours
(garlic, chilli, curry, shrimp paste, etc.) However, this may not always be possible when
compiling ethnic menus.
There are a number of flavours that almost always go well with certain cuisines.
Chilli, lemon grass and coriander in Thai dishes
Fish sauce used to flavour many Vietnamese dishes
Garlic and tomato in Italian dishes
Another crucial component when considering culinary balance is texture. Let’s look at this
next.
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Textures
Provide different textures on each plate and in your whole menu to vary how the food
feels in the mouth and prevent monotony. This doesn’t have to mean breaking the bank
on lots of expensive ingredients.
Click on the icon to learn how you can change the texture of a humble carrot.
 Purée it to make soup or a vegetable soufflé.

 Mash it.
 Serve it in soft and tender batons.
 Cook ‘al dente’ as a main course accompaniment.
 Chop it raw into a salad.
 Grate it or curl it and use as a garnish.
How do you check culinary balance?

List the characteristics on a chart! Examine it to get an overall view of the menu. On this
menu there are three imbalances. Can you spot them? Try for yourself.
Read this menu and then click on it to see its characteristics listed in a chart.
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Click on the speech bubbles to find out the imbalances on the menu.
There’s an There’s an There’s an imbalance of

imbalance of imbalance of size and shape. The
colour. The main texture. The appetiser, soup and
and dessert are appetiser, soup dessert are all one large
brown. and dessert are round item.
all smooth.
Dish Main
Cooking Size &
Colour ingredien Flavour Texture Temp.
method shape
t
Appetiser Sea One large
White & Subtle &
perch, Baked Smooth item/ Cold
orange spicy
pumpkin triangle
Soup Smooth
Pale Chicken & One large
Subtle Boiled & Hot
green spinach item
creamy
Main Two
Strong
course medium
Brown Lamb (mustard/ Grilled Tender Hot
round
fruit/ herb)
items
Dessert Rich, One large
Brown & Chocolate Cold &
sweet & Baked Smooth round
red & rhubarb frozen
tart item
Nutritional balance
To create a menu with a balanced variety of dishes, you also need to take nutritional
balance into account.
Click on the question marks to find out what this means.
? Vary cooking methods
? Provide nutritional value
? Vary ingredients
? Use delicacies and seasonally available ingredients
You’ll learn more about how to achieve nutritional balance over the next few screens.
Vary cooking methods

Using different cooking methods is nutritionally sound, provides variety, and also evenly
distributes use of key kitchen equipment so staff can get dishes out quickly during peak
service times.
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These are some of the different cooking methods you can use.
• Boiling
• Poaching
• Steaming
• Stewing
• Braising
• Roasting
• Baking
• Shallow frying
• Deep frying
• Grilling
Not all cooking methods are created equal! Grilling, baking, steaming, poaching and
boiling are healthier than deep frying, roasting or shallow frying, which only add more fat.
Provide nutritional value

More Australians are eating out than ever before. Customers expect menu choices to be
nutritionally sound as well as tasty. What exactly is good nutrition? The Dietary Guidelines
for Australians gives us the basics.
Click on the pictures to learn what a nutritionally balanced menu should include.
Vegetables and legumes

Different types of vegetables in a wide variety of colours: dark green leafy vegetables,
broccoli, zucchini, carrots, sweet potato, capsicum, etc.
Legumes: dried, canned and cooked beans, peas, lentils and other pod-bearing plants
and their products such as bean curd, tofu and pappadams.
Fruit
A wide variety of fruits from all classifications: melons, citrus, berries, core, seed, stone,
tropical and vine fruits.
Grains (cereals)
Wholegrain wheat, rice, oats, corn, popcorn, barley, quinoa, amaranth, couscous, and
products made from them: flour, polenta, bread, pasta, noodles, breakfast cereals,
porridge.
Lean meats and alternatives

Lean meat, poultry, fish, shellfish, eggs, tofu, nuts, seeds, legumes/beans.
This doesn’t include organs such as liver or kidneys.
Dairy and alternatives

Reduced fat cow, sheep and goat milk and products made from them (cream, yogurt,
cheese, sour cream, cottage cheese) as well as alternatives such as almond milk and
calcium fortified soy milk.
2016 Edition 24
Low in saturated fat

Saturated fats include lard, dripping and many animal fats. They are also found in palm
and coconut oil. Limit these foods on your menu as they pose the greatest risk to health.
• Desserts (cake, ice cream, pastries, biscuits, pies)

• Fast foods (burgers, pizzas, chips, chicken nuggets, fried foods)
• Savoury snacks (potato chips, tortilla chips)
• Processed meats (ham, bacon, salami, pepperoni, sausages, hot dogs)
Low in added salt

Salt occurs naturally in food. However, table salt poses a big health risk if used
excessively.
Processed meats are very high in added salt, as are many fast foods. Limit these on your
menu and don’t put extra salt in food as you cook.
Low in added sugar

Like salt, sugar occurs naturally in most foods. Sucrose in refined table sugar, however,
has few nutrients and actually has to use vitamins stored in the body to break it down!
Besides desserts and lollies, the biggest culprits when it comes to added sugar are the
following drinks.
• Sports drinks
• Energy drinks
• Soft drinks
• Fruit drinks
• Cordials
• Vitamin waters
Make sure your menu includes healthier options than these!
Vary ingredients
Australia has an amazing number of ingredients (beef, pork, lamb, veal, chicken, game,
seafood, vegetarian, etc.) to choose from. Include a dish of each on your menu! It’s OK to
repeat major ingredients on an à la carte menu, but not on restricted menus (table d’hote,
function, cyclical). What about themed menus?
Click on the icon to learn how a seafood restaurant can offer wider ingredient
choice.
Include whole fish as well as a variety of fish cuts.
Include prawns, scampi, scallops, calamari, oysters, mussels, crab, crayfish. Avoid using
the same type of fish more than necessary.
Vegetarian and meat-based dishes should be available for customers who don’t like
seafood.
25 2016 Edition
You can apply the same principles to vary meals in vegetarian restaurants, steak houses,
etc. to widen choices. Another way to do this is to use delicacies and seasonally available
ingredients.
Click to the next screen to learn more.
Use delicacies and seasonally available ingredients

Native spinach fettuccine in a creamy bush tomato and macadamia sauce? Lemon myrtle
linguine tossed with prawns? Local delicacies go a long way in creating a varied menu. So
do seasonally available ingredients.
Click on the produce items and find out when they are in season.
Winter Spring Summer Autumn

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Artichoke
 
(Globe)
Asparagus    
Leeks    
Lettuce        
Snow peas    
Sweet corn   
Tomatoes        
Witlof  
Apricots   
Cantaloupe  
Cherries   
Honey dew      
Mandarins    
Persimmons  
Quinces  
Watermelon     
Spring lamb   
Moreton Bay
        
Bug
Coral trout      
2016 Edition 26
Who do you discuss the dishes with?

Make and record any necessary adjustments to draft recipes, presentation styles, portion
sizes, sauces, accompaniments, garnishes and crockery until you’re happy with each
dish. Then test it out and discuss it with the relevant people.
Click to find out who to discuss your dishes with.
Your customers
Offer new dishes as a special to market test it with your customers. Monitor how well they
sell. Get customer feedback for further refinements.
Your colleagues
Ask workmates for their opinions on each dish.
• Cooks
• Kitchen hands
• Food service attendants
• Managers
They can offer constructive feedback on how you could improve them or how suitable they
are for the target market. Once everyone is satisfied with the dishes, it’s time to write your
standard recipes. You’ll learn how on the next screen.
Hot tip
Don’t be surprised if ideas that look good on paper don’t work well in practice. This is all
part of the development process. You may need to scrap the dish and find a replacement
or make adjustments.
• Substitute the cut or type of meat.
• Change the accompaniments.
• Reconsider the sauce.
Write standard recipes

Standard recipes ensure the customer gets the same quality, presentation style, portion
size and taste every time they order a dish, regardless of who prepares it. This assists in
training new staff and also keeps costs constant.
Click on the icons to learn the characteristics of standard recipes.
Design it!
You can design standard recipes in house using computer templates or standard recipe
software (glossary).
27 2016 Edition
Standardise it!
Customise your standard recipes to suit the service style, presentation, portions and
customer numbers typical to your organisation.
Follow it!
Once you’ve developed a standard recipe, all cooks must follow it to the letter.
Adjust it!
Use a portion yield that you can easily increase or decrease, depending on demand.
Adjust costing as food prices go up and down.
Use it!
Use the standard recipe to order food, as it shows the amount required to prepare a set
number of portions.
Click on the filing cabinet to read a standard recipe.
2016 Edition 28
Some information is missing. What is it?
Did you notice that information on portion cost, selling price, food cost %, yield %,
purchase unit price, total cost and cost per portion were missing?
In section 3, you’ll learn more about these terms and costing menus so you can fill in the
gaps.
For now, click to the next screen to review what you’ve learned so far.
End of section
29 2016 Edition
3
Section 3:
Cost menus
• How to itemise all components of dishes or food production items.

• How to calculate portion yields and costs from raw ingredients.
• How to assess cost-effectiveness of proposed dishes or food production items.
• How to price menu items to ensure maximum profitability.
Why are you in business?

No matter how happy your customers are or how well-balanced your menu is, here’s the
bottom line. You’ve got to meet your budget and/or make a profit.
We’re in business to generate profit.
We’re in business to serve the public, so we need to operate within a specified budget.
Click on the icon to follow the path to profit.
This equation neatly sums up the path to profit.
Income – expenses = profit or loss
Click and drag the bag of money across the path to see this equation in action.
 Money comes in from paying customers in a commercial operation or through

budget allocations in an institutional operation.
 Money goes out to pay your expenses (running costs).
 If your income is higher than your expenses, you’re on the path to profit.
 If your income is lower than your expenses, you’re operating at a loss and on the
road to ruin.
Your job is to cost your menus so your organisation makes more money than it loses. To
do this, you need some idea of the costs involved in running a business.
Click to the next screen to find out how much you know about this already.
Major expenses
What do you think a restaurant’s major expenses are?
You have 30 seconds to list as many as you can.
Click start to begin.
31 2016 Edition
What do you think a restaurant’s major expenses are? List them.
How did you go?
Food and wages? Indeed they are. Click to the next screen to compare your answers to
ours.
What are your major expenses?

Money goes out the door on many expenses.
Click on the pieces of the chart to find out what they are.
Food costs comprise a whopping 25% of business expenses. It’s no wonder accurate
menu costing is such a critical element in all successful food service establishments. It’s
the only way to make confident financial decisions and avoid cost blowouts.
How do you get on the path to profit?

Click on Carly to find out.
There is a procedure than can get you on the path to profit. These are the 5 steps.
Step 1: Write purchase specifications
Step 2: Itemise all proposed components
Step 3: Calculate portion yields and costs from raw ingredients
Step 4: Price menu items
2016 Edition 32
Step 5: Assess cost effectiveness
We’re going to spend some time going through these five steps, so click to the next
screen to get started.
Step 1: Write purchase specifications

Identify, define and document your exact ingredient requirements from your standard
recipe. This includes variety, quality, size, and packaging. Be very specific so both you
and your suppliers are clear about what you need.
Click on the checkboxes to learn what these specifications might include.
 Name and variety of product (Granny Smith, brie, pork)

 Specific cut (leg, fillet, cutlet, darne, brisket, skinless breast)
 Quality of product (grain fed, grade A, free-range, organic)
 Age, sex, breed (yearling, Angus, steer)
 Area sourced from (Hunter Valley, Gippsland, Margaret River)
 Size tolerance (must not exceed…, no smaller than…)
 Fat cover tolerance (no more than 4 mm, no less than 4 mm)
 Purchase unit (kg, g, A10 can, bag, box, each, carton)
 Brand name (King Island, Pampas, Knorr, Nestlé)
 Packaging requirement (vacuum-packed, frozen, chilled, individually wrapped)
 Labelling requirements (thermo labels, individually labelled)
 Slaughter requirements (kosher, halal)
 Acceptable alternative if product is unavailable
In a nutshell
These details set up a common language between you and your suppliers. They know
exactly what your requirements are and can give you an accurate quote. You’ll know
exactly what to expect in each delivery and the cost.
33 2016 Edition
Step 2: Itemise all proposed components

Why not just say ‘itemise ingredients’?
You need to know how much each complete dish costs. The components of the dish
depend on your style of service and cuisine and so are specific to your organisation.
Your components might include some of the following items.
• Main ingredients
• Cooking oil
• Accompaniments
• Sauces
• Condiments
• Seasonings
• Garnishes
• Decorations
• Takeaway containers
• Wrapping
• Chopsticks
• Disposable plasticware
• Serviettes
Use standard measurements

You use standard measurements in all calculations. Use supplier invoices and price lists
to identify the purchase price or cost per unit of each ingredient used in the dish so you
can work out your costs for supply.
Click on the tabs to find out what these are.
Weight
Meat, fish, vegetables, fruit are usually weighed in grams (g) or kilograms (kg).
Volume
Liquids such as juice, milk, stock are usually measured in millilitres (ml) or litres (L).
Count
Some ingredients you may need to count include items such as sausages, eggs, hash
brown patties, slices of bread.
Click on the filing cabinet to see where you can find cost per unit on an invoice.
2016 Edition 34
Not all ingredients are created equal!

Unfortunately, you can’t just get your supplier’s invoice and add up the ingredient prices to
find out how much your dish costs to make. Why not?
Remember our risotto recipe? It contains different kinds of ingredients which you need to
test and cost differently.
Click on the tabs to find out what they are.
Ingredients that yield 100%

• Some raw ingredients don’t lose anything during preparation or production.
• You use 100% of what you purchase.
• The yield (glossary) is 100%.
• For example, when you garnish the risotto, you’ll use all 100 g of the original shaved
parmesan.
35 2016 Edition
Ingredients that yield less than 100%

• Some raw ingredients require cleaning, trimming, peeling, skinning, deboning and/or
portioning before you can use them.
• You lose some of the ingredient during preparation or production.
• The ingredient yields less than 100% of the amount you purchased.
• For example, you need to peel the onions before chopping them for your risotto. Some
of the onion is edible, but some isn’t.
Step 3: Calculate portion yields and costs from raw

ingredients
The butter, grated parmesan, shaved parmesan, rice and chicken stock yield 100%.
Luckily, we don’t have to do a yield test on them! We can calculate the actual cost of the
food straight away by plugging the information from our standard recipe into two
mathematical formulas.
What do you think the total cost for the butter in this table is? How do you think we
calculate it? Click ‘Next’ to find out.
Ingredients Qty Unit Purchase Purchase Cost

unit unit price Yield Total cost
Butter 130 g 1.5 kg $4.85 100% $?
How did you go?

The total cost of the butter is $0.42.

Butter 130 g 1.5 kg $4.85 100% $0.42
Note: Round figures up to two decimal places
We get this answer by using these two formulas.
The first formula determines the usage percentage. This is the percentage of the
purchase unit (glossary) you require for the recipe.
What’s the usage %?

Purchase weight ÷ purchase unit x 100 = usage %
130 g butter ÷ 1500 g butter x 100 = 8.6%
So you need 8.6% of the butter for your recipe.
The second formula calculates the actual cost of the ingredient. To do this calculation, you
need the purchase unit cost/price (glossary) (from your invoice or standard recipe) and the
usage percentage (from the last calculation).
2016 Edition 36
What’s the actual food cost?

Purchase unit cost x usage % = actual food cost
$4.85 x 8.6% = $0.42
So the total cost of the butter is $0.42.
Hot tip
WARNING! When you do your calculations, make sure that your quantity unit and
purchased unit are expressed in the same way (either both in grams or both in kilograms).
If you try to do the calculations with different units of measurement, they won’t work out.
Can you calculate the costs of the raw ingredients?

What are the actual food costs of these raw ingredients: arborio rice, chicken stock, grated
parmesan, shaved parmesan, basil?


Can you complete the table using these two formulas? Type your answers into the
available spaces. Click Submit when you’re done.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 $ -
Button mushrooms 300 g 1 kg $4.99 $ -
Arborio rice 800 g 10 kg $14.80 100% $ _______
Chicken stock 2.3 L 1L $0.80 100% $ _______
Grated parmesan 150 g 1 kg $16.20 100% $ _______
Shaved parmesan 100 g 1 kg $24.85 100% $ _______
Basil 10 sprigs Bunch $2.90 - $ _______
(30
sprigs)
Total cost of recipe $
Portion cost $
How did you go? Have a look at the table to see it completed with the correct answers.
How many did you get right?
37 2016 Edition
Remember, you can’t add the cost for the button mushrooms and onions yet because you
must do a yield test first to determine the wastage. We’ll look at this next.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 $-
Button mushrooms 300 g 1 kg $4.99 $-
Arborio rice 800 g 10 kg $14.80 100% $1.18
Chicken stock 2.3 L 1L $0.80 100% $1.84
Grated parmesan 150 g 1 kg $16.20 100% $2.43
Shaved parmesan 100 g 1 kg $24.85 100% $2.48
Basil 10 sprigs Bunch $2.90 - $0.97
(30
sprigs)
Portion cost $
What’s the purpose of yield tests?

As you’ve learned, you need to process raw ingredients such as the onion, mushrooms
and basil in the risotto recipe. You do yield tests on these ingredients to learn what
percentage you can actually use after they’re processed. This is called the yield
percentage (glossary).
Click on the icon to find out why knowing the yield percentage is so important.
 The yield percentage helps you calculate the minimum amount of the ingredient you
need to order for your recipe.
 It helps you determine actual cost of each ingredient and each dish as compared to
the purchase cost.
 It helps you calculate portion yields (the maximum number of servings the amount
you purchase will give you).
2016 Edition 38
Hot tip
Many foods (such as roast meats) require cooking before they’re portioned. You need to
take this shrinkage into account through further yield tests.
Be sure to document and consistently follow the same cooking temperatures and times.
That way, you get the same cooked yield weights every time.
Some ingredients need to be cooked before you portion them. Some of the ingredient is
lost as you cook it. Which ingredients in the risotto recipe are like this?
Some ingredients actually expand. You get more after you cook it than you had in the
beginning.
How do you do a standard yield test?

This is how to do a standard yield test on sweet potatoes.
1. Purchase your potatoes.

2. Weigh them to get the As Purchased Quantity (APQ). Let’s say 10 kg.
3. Clean and peel them.
4. Weigh them again to get the Edible Portion Quantity (EPQ). Let’s say 8 kg.
5. Use this formula to get the yield percentage.
Edible Portion Quantity (EP) ÷ As Purchased Quantity (AP) x 100 = Yield %
8 kg ÷ 10 kg x 100 = 80%
What factors can influence yield?

• Ingredient quality: If the ingredient isn’t fresh, less is usable and yield is lower.
• Ingredient size: Peeling smaller potatoes creates more waste and lower yield than
peeling larger potatoes.
• Staff skill: Unskilled employees create more waste and lower yield than skilled
employees.
Note...
In reality, you may not have time to do yield tests on all fruits and vegetables. Your
organisation may provide a chart for you to use with approximate yields on it.
39 2016 Edition
Can you calculate the yield percentages?

You buy 1 kg button mushrooms. After cutting off the stems, you have 930 g left.
You buy 10 kg onions. After peeling them, you have 8.2 kg left.
Edible Portion Quantity (EP) ÷ As Purchased Quantity (AP) x 100 = Yield %
What are the yield percentages for the onions and the button mushrooms? Type your
answers into the available spaces. Click Submit when you’re done.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 ______% $-
Button 300 g 1 kg $4.99 ______% $-
mushrooms 800 g 10 kg $14.80 100% $1.18
Arborio rice 2.3 L 1L $0.80 100% $1.84
Chicken stock 150 g 1 kg $16.20 100% $2.43
Shaved parmesan 10 sprigs Bunch $2.90 - $0.97
Basil (30 sprigs)
Portion cost $
How did you go? Have a look at the table to see it completed with the correct answers.
How many did you get right?
These figures are important because they’re the next piece of the puzzle! We’ll use them
when we calculate actual food cost on the next screen.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 82% $-
Button mushrooms 300 g 1 kg $4.99 93% $-
Arborio rice 800 g 10 kg $14.80 100% $1.18
Chicken stock 2.3 L 1L $0.80 100% $1.84
(30 sprigs)
Portion cost $
2016 Edition 40

Because the onions only yield 82%, we need more than 200 g to get 200 g. To calculate
costs, you need to find out exactly how much more onion you need to buy. After that, you
can calculate the usage % and actual food costs as before.

Onion 200 g 10 kg $11.30 82% $ ______
Click on the tabs to learn how to calculate the actual food cost.
How much onion do we actually need to buy?

Quantity required ÷ yield % = purchase weight
200 g ÷ 82% = 244 g

244 g ÷ 10 000 g x 100 = 2.44%

$11.30 x 2.44% = $0.27

Onion 200 g 10 kg $11.30 82% $0.27
Can you calculate the actual food cost?

Now we’ll use the formulas from the previous screen to calculate the actual food cost of
the button mushrooms.
How much do we actually need to buy?


41 2016 Edition

Button mushrooms 300 g 1 kg $4.99 93% $1.61
Butcher’s yield test

Fruit and vegetable trim isn’t very valuable and is usually considered waste. However,
some of the trim from meat, poultry and seafood has value. You can use it to make other
saleable dishes. What if you’d like to add a fillet of flathead to each plate of risotto?
Click on the tabs to learn how to do a butcher’s yield test on the fish.
Step 1
Weigh the whole purchased product, the whole flathead fish. Record the ‘As Purchased
Quantity’ (APQ).
Step 2
Process the product according to the recipe. Put all useable trim (glossary) in one pile and
waste trim (glossary) in another pile.
Step 3
Weigh the prepared product you’ll use in the recipe. Record the Edible Portion Quantity
(EPQ), the flathead fillets.
Step 4
Weigh the useable trim. Record the weight.
Step 5
Weigh the waste trim. Record the weight.
Results and summary

As Purchased Quantity (APQ) 9.5 kg
Edible Portion Quantity (EPQ) 5.225 kg
Usable trim weight 3.242 kg
Waste trim weight 1.033 kg
What’s the yield %?

EPQ ÷ APQ x 100 = Yield %
5.225 kg ÷ 9.5 kg x 100 = 55%
2016 Edition 42
What’s the usable trim %?

Usable trim weight ÷ APQ x 100 = usable trim %
3.242 kg ÷ 9.5 kg x 100 = 34%
What’s the waste %?

Waste trim weight ÷ APQ x 100 = waste %
1.033 kg ÷ 9.5 kg x 100 = 11%
Note...
The value of the usable trim depends on the kind of meat it is (fish flakes, mince, chicken
wings).
What’s the actual cost per portion?

You know the yield percentage is 55%. Now you can calculate the exact quantity of
flathead you need to buy as well as the actual cost per kg and per portion.
Let’s say you need 10 prepared portions of flathead fillets weighing 160 g each.
10 portions x 160 g = 1600 g (1.6 kg)
Click on the question marks to learn how to answer the crucial questions.
? How much fish do you need to buy?

1.6 kg ÷ 55 x 100 = 2.9 kg
Buy 2.9 kg (minimum) whole flathead to get 1.6 kg prepared flathead.
? What’s the actual cost of the fish per kg?

Cost of flathead = $13.80 per kg
Purchase weight = 2.9 kg
Processed weight = 1.6 kg
Purchase weight x cost per kg ÷ processed weight = actual cost per kg

2.9 kg x 13.8 ÷ 1.6 = $25.01 actual cost per kg
? How much does the processed fish cost?

Required amount x actual cost per kg = total cost
1.6 kg x $25.01 = $40.02
43 2016 Edition
? How much is the cost per portion?

You need 10 portions
Total cost ÷ number of portions = cost per portion
$40.02 ÷ 10 = $4.00 per portion
? So how do you get the cost per portion?

• Calculate the yield of the ingredients in your recipe.
• Calculate the actual cost of each ingredient.
• Add up the individual costs to get a total dish cost.
• Divide the total cost by the number of portions to get cost per portion.
Hot tip
If you use edible trim to prepare other saleable dishes, deduct the price you would have
paid for them from the purchase price. This gives you an accurate food cost for the
prepared dish.
If you don’t use trimmings, include them in the price of the dish.
Can you calculate the cost per portion?

Let’s go back to our mushroom risotto recipe. We’ve calculated the yield of all the
ingredients as well as the actual cost of each one.
How much is the total cost of the recipe?

How much is the cost per portion?
Remember, you need 10 portions.
Total cost ÷ number of portions = cost per portion
Type your answers into the available spaces. Click Submit when you are done.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 82% $-
Arborio rice 800 g 10 kg $14.80 100% $1.18
Chicken stock 2.3 L 1L $0.80 100% $1.84
(30 sprigs)
Total cost of recipe $ _______
Portion cost $ _______
2016 Edition 44
How did you go? Check out the answers in the table to see the correct figures.

Butter 130 g 1.5 kg $4.85 100% $ 0.42
Onion 200 g 10 kg $11.30 82% $-
Arborio rice 800 g 10 kg $14.80 100% $1.18
Chicken stock 2.3 L 1L $0.80 100% $1.84
(30 sprigs)
Total cost of recipe $11.20
Portion cost $1.12
What should you consider when setting prices?

Now that you know what the food costs are, you can think about setting your selling price.
Click on the pictures to learn some things to consider first.
Type of enterprise
Pub, take-away, restaurant, hotel, fine dining.
Menu price structure

Organisations usually have set price ranges for various courses. The price you set for
your dish should fall within them.
Appetisers $7.00 to $9.50
Soup $5.00 to $8.00
Entree $10.00 to $16.00
Main course $18.00 to $28.00
Dessert $9.00 to $12.50
Competition
In a competitive environment such as a food court or restaurant strip, prices need to
attract customers.
Target market
What can your target market afford to pay?
45 2016 Edition
Sales turnover
If sales turnover is high, a reduced mark-up may be possible. This means you get less
profit on each sale. However, you counterbalance this by a large number of sales.
Labour and overhead costs

These vary greatly from one enterprise to another and are factored into your food cost
percentage. Click to the next screen to find out more.
Step 4: Price menu items

Remember, the true cost of a dish includes more than the food. There are other expenses
such as labour, utilities, taxes, maintenance, etc. On top of this, the organisation needs to
make a profit. The hospitality and catering industry has desired profit margins, mark-up
procedures and rates.
Your management considers all of this when calculating the selling price. For the dish to
be cost effective, the selling price must be higher than all of the expenses put together.
Click on the steps to learn how to calculate the price of a seafood salad.
1. Get a profitable selling price.

You do this by multiplying the food cost per portion by the standard food cost (SFC) %
Food cost per portion for seafood salad components is $4.85.
Standard food cost (SFC) (glossary) % set by the management is 28%.
Food cost per portion x 100 ÷ standard food cost (SFC) % = selling price
$4.85 x 100 ÷ 28 = $17.32
If you sell the seafood salad entree for $17.32, you’ll make a profit.
2. Calculate the GST.

Selling price x 10% = GST
$17.32 x 10% = $1.73
3. Add the GST to the selling price.

Selling price + GST = GST inclusive selling price
$17.32 + $1.73 = $19.05
2016 Edition 46
Setting the selling prices

Let’s see how the price of an item can change depending on an organisation’s standard
food cost (SFC) %. Remember, this can range between 21% and 35%. Let’s look at both
ends of the scale.
The food cost per portion of mushroom risotto is $1.12.
The food cost per portion of seafood terrine is $6.70.
Here is your formula.
100
Food cost
x = selling price
per portion
standard food cost %
Don’t worry about the GST for now.
Click on the icon to see how you can use these calculations to work out the selling
price for each item.
Mushroom risotto with SFC 21% $5.33
Seafood terrine with SFC 21% $31.90
As you can see, there is a big price difference between the two sets of selling prices and
between both dishes at the same selling price.
Step 5: Assess cost effectiveness

OK, you’ve done your maths. In the previous activities, we priced a seafood salad entree
at $19.05 and a seafood terrine at $26.80.
If your customers are willing to pay this, fantastic!
But what if they aren’t?
What if your establishment has determined that entree prices must fall between $12.00
and $15.00 based on customer profiles and target market?
Uh oh! You’ve crunched all your numbers, but the dishes aren’t cost effective!
Time to examine your options…
47 2016 Edition
Click on the icon to find out what they are.
Dealing with dishes that are not cost effective

1. Drop the dish from the menu. Replace it with a more cost effective one.
2. Examine every detail of the recipe. Consider ways you could produce it more
cheaply (reducing portion size, cutting down on or replacing more expensive
ingredients).
In the seafood salad example, you could replace green king prawns with banana
prawns (a cheaper alternative) and/or replace fresh scallops and crab meat with
frozen.
3. If the dish has wide customer appeal and balances that section of the menu, keep it
in its original form, but sell it at a reduced profit margin. You might be able to offset
the loss by increasing prices on other more cost effective dishes (soups and
vegetarian meals).
Click to the next screen to see this in action.
How can you keep the selling price within range?

Your organisation’s set food cost percentage is 25%, so the risotto’s selling price is $4.52.
The terrine’s is $26.80. How can you make the two entree prices more comparable? Mark
the risotto up and the terrine down.
Change the risotto’s food cost percentage to 9% and the terrine’s to 41% to get a 25%
average.
9% + 41% ÷ 2 = 25%
Click on the icon to find out how to calculate the new selling prices.
100
Food cost x = selling price
standard food cost %
Mushroom risotto $1.13 x 100 ÷ 9 = $12.55
Seafood terrine $6.70 x 100 ÷ 41 = $16.34
The terrine is still more expensive than the risotto, but there’s not such a big gap between
the prices. The new selling prices also achieve management’s overall average food cost
percentage of 25%.
You can use this process to manipulate the figures on each menu item to achieve an
overall food cost of 25%.
Click on the filing cabinet to see how to achieve an overall food cost of 25%.
Notice that the adjusted selling price is a slight alteration of the raw selling price to round
off the figures into a menu-friendly format. It’s common for the prices to round up or down
to the nearest 25 cents ($0.00, $0.25, $0.50 or $0.75).
2016 Edition 48
OCEAN VIEW BISTRO

MENU CALCULATION SHEET (25% Food Cost required)
Dish name Section Portion size Food Food Raw Adjusted
cost/ cost % selling selling
portion price price
Pumpkin Entremettier Entree
$1.37 20% $6.85 $7.00
soup
Mushroom Entremettier Entree
$1.13 9% $12.55 $12.75
risotto
Seafood Garde Manger Entree
$6.70 41% $16.34 $16.25
terrine
Thai salad Garde Manger Entree $4.24 30% $14.13 $14.25
Entree average food cost percentage: 25%
Snapper Poissonnier Main course $7.86 29% $27.10 $27.25
Scotch fillet Saucier Main course $5.93 24% $24.71 $25.75
Duck Saucier Main course $6.80 27% $25.19 $25.25
Main course average food cost percentage: 27%
Orange cake Pâtissier Dessert $1.58 17% $9.29 $9.50
Profiteroles Pâtissier Dessert $3.08 32% $9.62 $9.75
Brandy snap Pâtissier Dessert $2.11 22% $9.59 $9.50
Dessert average food cost percentage: 23%
Total average food cost percentage: 25%
When do you adjust the menu?

Keep an eye on the profits! Pay attention to sales to ensure that the unprofitable dishes
aren’t the most popular ones on the menu. If they are, it’s time to make adjustments.
For example, if most customers order the terrine (with a food cost percentage of 41%),
you won’t achieve the overall food cost of 25%.
Click on the icon to find out how you can identify problems before it’s too late.
• Use sales analysis.

• Record your food-related purchases and sales for each week.
• Keep track of your overall food cost percentage on a weekly and monthly basis.
• Check your overall food cost percentage at the end of every week so you’re not hit by
any big surprises at the end of the month.
Here is the formula you need to do this.
Total food purchases ÷ total food income x 100 = food cost %
49 2016 Edition
If the menu items are unprofitable, take corrective action and adjust the menu.
Change prices or choose menu items that provide high yield and are more profitable to
replace the unprofitable dishes.
Click on the filing cabinet to see an example of a monthly calculation sheet.
Update the purchase unit price of each ingredient and re-calculate the costs of goods as
their prices go up. This ensures that you always have up-to-date information.
Do you have to cost menus by hand?

No! Lucky for you, technology is on your side. Calculating yield and costs from raw
ingredients has never been easier with the help of computers and software programs.
Click on the checkboxes to find out more.
 Many organisations use Excel spread sheets to update standard recipes and make
new calculations. Take a course in Excel.
 Attend in-house workshops or training sessions to hone your computer skills.
 Ask your supervisor for training if none is provided.
 Ask more experienced colleagues for tips on how to use technology to make your
costing of menus quicker and easier.
 Practise!
End of section
2016 Edition 50
Section 4:
4 Write menu content
• How to write menus using words that appeal to the customer base and match the
service style.
• How to use correct names for the style of cuisine.
• How to use descriptive writing to promote the sale of menu items.
Menu mistakes
Restaurants lose business if their menus aren’t up to scratch.
Click on the customers to learn some common mistakes.
 Muscovy Cassis? Does anyone know what that is?

 I think I’ll pass on the spiced chocolate mouse! Yuck!
 Chargrilled scallops with fresh mango salsa? Don’t think so. Where do you get fresh
mango in the middle of winter?
 Can anyone see the appetisers? Half this page is torn off…
 Ugh! Looks like someone’s used this one to kill a fly. Let’s get out of here!
Click to the next screen to see the tools you can use to avoid these errors.
What’s the purpose of a menu?

The ultimate goal of your menu is to communicate with your customers so they’ll
purchase. The menu says a lot about you and the standard of food you serve. It gives you
a chance to establish a positive and lasting impression.
Click on the tools to learn how you can use to impress your customers.
Describe dishes clearly with no jargon

‘Fire-roasted duck breast drizzled with blackcurrant sauce. Yum!’
Spell and punctuate correctly

‘Spiced chocolate mousse with hazelnut praline! Sounds fantastic! Maybe I’ll start my diet
tomorrow …’
51 2016 Edition
Be accurate and truthful

‘Chargrilled sea scallops with freshly grated ginger, lime and leek. Sounds warming and
refreshing doesn’t it? Perfect winter fare …’
Remove menus that are dirty, torn or tattered

‘How elegant are these menus? It feels so lovely to be out somewhere special …’
How do you format a menu?

Click on the headings to learn typical characteristics.
Name of the establishment

Often, people forget to include crucial information (such as the name of the
establishment!) on the menu. Later in this section, you’ll learn more crucial details to
include with the establishment name.
Menu sections or courses

Think through these. You may want a separate heading for soups, salads, extras, etc.,
depending on the type of food you serve.
Price
Leave the dollar sign off your prices. Also, rather than charging $17.00, consider pricing at
$16.75. Both of these tactics make the menu items look less expensive, enticing diners to
purchase more.
If you have a menu item with ingredients that fluctuate widely, list the price as ‘market
price’.
Name of dish
How you name your dishes depends on your customer base. When catering to overseas
tourists, for example, use simple dish names accompanied by pictures. Locals will
appreciate more descriptive language.
Description of dish
If you choose to describe your dishes, make sure you’re truthful so customers know
exactly what to expect and aren’t disappointed. You’ll learn more about how to describe
dishes shortly.
Inclusions
Seasonal products and commodities influence menu content. You can either change your
menu with the seasons or slide a separate inclusion into the menu listing the seasonal
specials.
Winter specials
Chargrilled sea scallops with freshly grated ginger, lime and leek 14.7
Roasted winter vegetable soup with hot buttered bread 10.50
Witlof and spinach salad with baked sweet potato and beetroot 9.00
2016 Edition 52
Does your menu suit your business service style?

Different types of food outlets require different types of menus. Choose a menu that fits
with your style of service.
Click on the pictures to see how to match menus to service style.
Fast food
Disposable paper placemats
Café
This small café changes their menu often and writes selections onto a blackboard.
Casual dining
Flip stand in the centre of the table.
Bistro dining
A single laminated A4 sheet of paper with the menu printed on the front and back.
Fine dining
Stylish print bound in a leather folder.
We deliver!
Paper brochure menus customers can take home.
Hot tip
It’s unlikely you’ll be making a decision on your menu type alone! Chances are you’ll be
working with a group of people including the business owner, general manager, food and
beverage manager, catering manager, head wait staff, chef and marketing/promotions
department.
Does your menu appeal to your customer base?

Be careful with the words you use in your menu. You may choose to use few words,
detailed descriptions, images or a combination of these. Ultimately, you should base your
decisions on the type of customer your establishment serves.
Click on the pictures to see some examples.
Customer: Overseas tourists with poor Customer: Inner-city locals

English
Menu style: Detailed descriptions which
Menu style: Simple, concise wording with include processes and specific cookery
pictures jargon
53 2016 Edition
Which descriptive style is best?

There are three descriptive styles you can use. Each has its advantages and
disadvantages. Base your decision on the style of the establishment, customer market,
current trends and your personal preference.
Click on the question marks to find out more.
Title only
• This is a traditional style which is no longer common except on function or cyclical
menus.
• There’s no description of the actual dish.
• Food service attendants supply further explanations to the customer.
2016 Edition 54
Description only
• Popular, modern style used by restaurants, cafés, bistros and hotels around Australia.
• The wording is clear, relevant and paints an enticing picture of the dish.
• Description may be simple: ‘Beer-battered flathead tails served with chips and salad’.
• Description may be a precise explanation of the dish. ‘Locally caught flathead tails
cooked in beer batter and served with French fried potatoes and a crisp side garden
salad’.
55 2016 Edition
Title and description

• This style is popular, especially on international menus as the title can be written with a
colourful language that reflects the theme. This adds to the atmosphere and overall
dining experience.
• Effective sales tool
• Presents food in a formal style
• Lets you create names for the dishes
2016 Edition 56
Hot tip
Whatever style you decide on, be consistent from one dish to the next throughout the
entire menu. Use language in line with the target market. Avoid excessive wording and
confusing phrasing.
Is your writing accurate and descriptive?

Creatively expressed menus and product descriptions help promote your food, but your
descriptions must also be truthful. Research shows that the right descriptive language can
increase sales by around 25%. It’s worth spending the time to get it right! Use different
descriptors in different orders with each dish to keep each menu listing unique.
Click on the pictures to learn how to describe dishes to promote sales.
Key ingredients
Describe the most important ingredients in the dish, particularly any regional specialties,
delicacies, or fresh seasonal foods.
Remember to also include the following.
• Sauces (jus, coulis, vinaigrette, hollandaise, pickle, demi-glace)

• Accompaniments (garden salad, lightly steamed vegetables, piped cream, golden
potato wedges, crusty bread roll)
• Garnishes (shaved parmesan, garlic croutons, cracked pepper, squeeze of lemon)
Special qualities of ingredients

Be sure to mention any special qualities the ingredient has that makes it seem healthier or
more appealing: all natural, free range, organic, freshly squeezed, freshly baked, garden
fresh, corn-fed, grass-fed, biodynamic, heirloom, artisanal, vine-ripened.
Geographical descriptors
Locally grown, King Island brie, Gippsland cream, New Zealand mussels, Sydney rock
oysters, Tasmanian salmon.
Application of sauces and garnishes

Sprinkled with, dusted with, drizzled with, doused in, smothered in, glazed with, marinated
in, encrusted in, bathed in, drenched in, heaped with, topped with, tossed with.
Cuisine style
Cajun spices, Mediterranean vegetables, Asian style greens.
Cooking method
Seared, oven roasted, baked, stir-fired, lightly sautéed, braised, triple basted, chargrilled,
lightly steamed, caramelised, poached, smoked, fire roasted, flame broiled.
57 2016 Edition
Portion or cut
Cutlet, medallion, leg, fillet, whole, slice, rosette, sliver.
Colour
Golden brown, green, rosé, pink, lemon, red.
Texture
Velvety, crispy, creamy, buttery, plump, tender, juicy, rich, thick, gooey, frothy, crunchy,
light, moist, syrupy, treacly, flaky, smooth, soft, crusty.
Flavour
Tangy, fiery, fruity, full-bodied, nutty, peppery, peppered, lightly salted, tart, zesty, sugary,
smoky, hot & spicy.
Service temperature
Ice-cold, piping hot, chilled, warm, frosty, iced, frozen, steaming.
Size
Bite-sized, chunky, hearty, lavish, jumbo.
Spellcheck and proofread it!

Chocolate mouse? Stir fried lice? Chicken and leak soup? Crap cakes? T-bone stake?
Little mistakes can make a big negative impression on your customers. They may think
you take as little care with cooking as you do with spelling!
Click on Carly to find out how to avoid mistakes like these.
Update your technology skills. Use your computer’s spellchecker to identify and correct
spelling and grammatical errors in your menu documents.
Make sure the spellchecker is set to ‘English’ (Australian).
Use online and text-based food dictionaries to assist with words you’re not sure about.
Remember, the spellchecker is a computer and isn’t always right! Hire a professional to
edit the document before it goes to print.
Note...
In our digital age, food dictionaries are not always text-based. You’ll find many useful
resources online.
2016 Edition 58
How do you design a menu?

Depending on your budget, you’ll either make menu design decisions in-house or consult
with a graphic designer and printer.
Click on the tabs to learn more about how to format and design a menu.
Paper stock
When it comes to choosing paper or card to print your menu on, there’s a wide variety of
colours, types and quality to choose from. Consider the following when making your
selection.
• If your menu will be in place for several months, select quality paper stock which can
withstand a high level of handling.
• Consider laminating to reduce wear and assist with cleaning.
• If you frequently change the menu, select a cheaper paper stock that still looks
appealing.
• Darker colours may suit your décor, but they’re difficult to read, especially at night with
dimmed lighting. Off-white, cream or pastel paper with dark print is far more effective.
• If you’re printing in-house, make sure the printer can cope with the thickness of the
paper.
Format
The number of dishes on the menu and how you list them influences the menu’s size and
shape. Keep the following points in mind when making formatting decisions.
• A three to four course table d’hôte menu listed by title only is likely to fit on a single
sheet (panel).
• An à la carte style listed by title and description may require several pages (panels).
• Make sure the menu is small enough for the customer to handle easily, but not too
small that the dish listings look overcrowded and messy.
Layout
When deciding how to lay out your menu, consider the following.
• When you place the dish listings on the menu, leave blank space around the margins,
between the printed lines and between each section. This prevents it from looking
cramped.
• But be careful! Too much blank space makes the menu look too sparse.
• Study a wide variety of menus from other enterprises to identify which layouts work and
which don’t.
• Customers usually order the first couple of dishes in each section of the menu. These
will consistently be your best sellers. Place your most profitable dishes in these
positions.
59 2016 Edition
Font style
This is the type, size and colour of the words on the menu. Keep your menus easy to
read.
• While hand-written menus demonstrate personalised service, they’re time-consuming

to produce and often difficult to read.
• Word processed menus are less personal, but more practical, especially when you
need a lot of menus.
• Choose a font style that suits the enterprise and is easy for all customers (including the
elderly and those with vision impairments) to read.
• If there’s subdued lighting in the dining area, test draft samples there.
• Use a font style that contrasts well with your chosen paper.
Business information
Often, people forget to include crucial information (such as the name of the
establishment!) on the menu. Place the following details on or near the front page.
• Enterprise name
• Business address
• Contact details
• Opening days and times
• Licensed or BYO
• Corkage charges
• Minimum charge per head
• Accepted payment methods
• Any other information you want your customers to know
End of section
2016 Edition 60
5 Section 5:
Evaluate menu success
• How to seek ongoing feedback to improve menu performance.

• How to assess the success of menus and customer satisfaction against sales data.
• How to adjust menus based on feedback and profitability.
How can you get feedback on your menu?

You’ve planned, costed, designed and printed your menu. Now you can sit back and
relax, right? Not so fast! You can always improve your menu’s performance. But how do
you know where to start?
Click on the checkboxes to learn how to get ongoing feedback.
 Hold regular staff meetings that involve menu discussions.

 Ask staff for menu item suggestions.
 Talk with customers to check that they’re satisfied.
 Discuss customer satisfaction issues with employees during the course of each
business day.
 Listen to improvements suggested by customers, managers, peers, staff,
supervisors, suppliers.
 Conduct customer satisfaction surveys.
How do you know which items on the menu are worth continuing and which should be
scrapped? Make an assessment based on facts, not opinions!
Click to the next screen to find out how.
How can you assess your menu’s success?

Don’t rely on guesswork or the opinions of friends and family.
Click on Carly to find out what to do instead.
Use tried and trusted methods to assess the popularity of menu items.
We’ll be looking at three methods in detail.
• A Popularity index
• Customer surveys
• Sales data
61 2016 Edition
You’ll learn more about each of these over the next few screens.
Popularity index
Calculating popularity index helps you work out which menu items are the most popular.
Click on the tabs to learn how to use the popularity index.
In a restaurant
In this situation, the popularity index can help you determine which dishes on the menu
you should keep and which you should replace.
It’s the ratio of portion sales for a given menu item to total portion sales for all items
across the board.
Number sold ÷ total number of menu items x 100 = popularity index
In an institutional setting with captive audience

In this setting, the popularity index can help you project the number of servings you should
prepare of a certain menu item based on its popularity (no matter what number of people
you’re serving).
Total servings made – leftovers = servings to customers

Let’s say you’re serving a number of dishes to 300 workers in a mining camp.
You prepare 150 servings of lasagne.
There are 20 servings left over or thrown away.
150 – 20 = 130 servings to customers.
Servings to customers ÷ total head count x 100 = popularity index

130 ÷ 300 x 100 = 43.33%
Total headcount x popularity index = number of servings to prepare next

time
Let’s say there’s an influx of miners and your headcount increases to 400.
400 x 43.33% = 173.3 rounded down to 173 servings
Customer surveys
There are many different ways to collect customer satisfaction data to determine how
happy customers are with your dishes. Most give customers a range of options and ask
how they feel about the meal, whether they’d recommend it to a friend, and provide
opportunity to comment.
2016 Edition 62
Sales data
Sales records are compiled via a link with electronic cash registers or through physical
counts at the end of each service period. Analysing sales data gives you valuable insight
into what’s selling and what’s not.
Click on the icon to learn what else sales data can help you do.
 Calculate the average number of customers you serve each day, week, month.
 Work out the best and worst selling dishes on the menu.
 Determine the percentage of customers that order each dish on the menu.
Total number of dishes sold ÷ total number of customers x 100 = percentage of
customers that order each dish
 Determine the percentage of customers that order entree, main course, desserts,
coffee.
 Determine the percentage of customers that order one, two or three courses.
Click on the filing cabinet to see some sales analysis records.
63 2016 Edition
2016 Edition 64
What next?
Once you’ve assessed your menu items, it’s time to make changes! Adjust your menus
based on the feedback you’ve received and whether or not they’re profitable.
Click on the icon to find out what this means for you.
 Remove menu items that are unpopular and replace them with more popular ones
trialled as specials.
 Improve menu items according to consistent customer feedback so you’re
continuously improving dishes.
 Replace unprofitable menu items with ones that provide higher yield and are more
profitable.
 Change prices of unprofitable menu items so that they’re more profitable.
End of section
Click to the next screen to read the unit summary.
Summary screen
Click on Carly for a summary.
Congratulations on reaching the end of your journey!
It hasn’t been easy. There are lots of formulas, calculations and decisions to be made to
ensure that you cost menus successfully.
Good luck using your newfound knowledge in planning and costing menus with a view to
getting your business on the path to profit.
65 2016 Edition
GLOSSARY
Glossary
Word Meaning
Cycle period The time elapsed before the menu repeats itself. This varies from
three days to 13 weeks depending on the establishment. Private
hospitals, where patients usually stay less than 10 days, use a 14-day
cycle period. Aged care facilities, where clients stay for extended
periods, use a longer cycle period, of four to six weeks.
Purchase unit It’s more economical to purchase food in bulk. The purchase unit is
the bulk amount which is divided up to make separate recipes. In this
case, the purchase unit is 1.5 kg of butter.
Purchase unit This is the price your organisation paid for the purchase unit. In this
cost/price case, 1.5 kg of butter costs $4.85. $4.85 is the purchase unit cost/
price.
Standard food cost A set percentage (usually between 21% and 35%) determined by
percentage (SFC) management.
Standard recipe Software programs are available to develop standard recipes. They
software save time and energy by calculating changing prices and adjusting the
number of portions required. They also help the chef and other
managers closely monitor budget-related matters.
Structured variety A wide range of food is built into the menu. If you use a food more
than once in the cycle period, next time serve it:
• on a different day of the week
• at a different service period (lunch instead of dinner)
• with different accompaniments
with different sauce.
Useable trim Any edible trimmings you can use for other dishes (mince, cubed beef
for stew, chicken for soup, etc.). Although you can use bones for
stock, they aren’t considered usable as such because they aren’t
edible.
Waste trim Any inedible trim you dispose of such as guts, scales, seeds, shells,
bones.
Yield The amount of an ingredient left after you process or cook it.
Yield percentage The percentage of the purchased quantity that’s used in your recipe.
didasko.com 2013 Edition 67

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Learner guide

Plan and cost basic menus

Version number 2.0

Section 1: Identify customer preferences ....................................................... 3

Section 2: Plan menus ................................................................................... 9

Section 3: Cost menus ................................................................................. 31

Section 4: Write menu content ..................................................................... 51

Section 5: Evaluate menu success .............................................................. 61

Please note the following condition

© 2016 Didasko Digital. All Rights Reserved.

Menu planning and costing is a journey of discovery.

Let’s look at what you will learn on completion of this unit.

Section 1: Identify customer preferences

Section 2: Plan menus

Section 3: Cost menus

Section 4: Write menu content

Section 5: Evaluate menu success

In this section you will learn the following.

• How to choose menu items to meet customer preferences.

Click on the chef to find out more.

Who are your customers?

Click to the next screen to find out who they are.

Click on the dot points to find out who they are.

 Defence forces (Army, Navy, RAAF)

 Hospitalised patients and residents of aged care facilities

What’s your current customer profile?

What questions do you need to ask?

What’s their social and cultural background?

Are they male or female?

How old are they?

What’s their income?

What do your customers prefer?

Click on the tabs to find out how.

What are contemporary eating habits?

What influences them?

What are your most popular menu items?

Do they want fast or slow food?

Do their tastes change according to the season?

Do they enjoy a variety of food products?

Click to the next section to continue.

In this section you will learn the following.

Failing to plan is planning to fail.

Click on Carly to learn what’s involved in menu planning.

• What’s your service style?

What’s your service style?

Click on the pictures to learn about different service styles.

$$ Café or casual dining

$$$ Bistro dining

$$$$ Fine dining

What type of cuisine do you serve?

What’s the classical sequence of courses?

What are the characteristics of a classical menu?

What’s the modern sequence of courses?

Click on the menus to see examples of modern course sequencing.

Why the change from classical to modern menus?

What type of menu do you need?

Click on the à la carte menu to find out more.

Click on the table d’hote menu to find out more.

Click on the function menu to learn more.

Click on the cyclical menu to learn more.

Click on the icons to find out what they are.

How do you generate a range of ideas for menus?

Click on the checkboxes to find out how.