Management by

Chapter3

LRJJ FBM

How Customers

Buy Your Product

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How Customers Buy Your Product

Upon completion of this chapter, you should be able to:

Under stand the planning steps for a al la carte menu

Recognize the impact of categorisation in à la carte menus

Recognize the potential of a innovative non-alcoholic beverage menus

Understand the benefit and challenges of alcoholic beverages sold by the glass,

Realize the role the wine list / beverage menu fulfills in a food and beverage operation

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How Customers Buy Your Product

• How can we ensure that the customer want to buy the product we have planned to sell?

• The only rule is to know your target market’s desires and parallel your offerings to capitalize on this demand.

What is the operative word to increase the likely hood of a sale?

Choice !!!

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Steps In Creating À La Carte Menus

• À la carte menus make it possible for your customers to make as many choices as they want.

• À la carte is the most prevalent menu style in commercial foodservices.

• What are the steps to consider when creating the a la carte menu ?

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Steps In Creating À La Carte Menus

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Identify customer wishes and their assumed value decisions for the meal period in question.

Create a menu structure and populate it with items for your guests to select.

Price the selections and forecast contribution to profit, and make adjustments as needed.

Develop a marketing strategy to generate sales of forecasted items at required levels

Operational Feasibility to produce useful results

What should a smart menu planner know?

• A smart menu planner considers– The organizational capabilities & space.– The human resources – The supply chain – The financial resources and cash flowWhen things go wrong?

• A smart menu planner knows when to discard a unmanageable concept and change direction to optimize results taking the above points into consideration

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Lets think like a menu planner and match distinctive concepts with likely customer needs

to save time =

reduce travel=

to satisfy hunger =

conduct business =

business-related

entertainment=

traveling as tourists

away from home =

speed/convenience

convenience /location/price conscious

house hold budget/value/

portion

conductive environment/

space/technology/discretion/

impress/ special experience/cultural /less price sensitive/ less time conscious/ billingsafety security /language/ transparency/comforting/cultural interaction/recreational budget/ 7

À La Carte Lunch Menus

Speed! But how?Customers seeking quick service can be satisfied by à la carte

menus that allow a fast turnaround from order to paying the bill.

A lunch menu that involves prepared-to-order items requiring long cooking times

don’t work.

A lunch package offering a 5 course meal may be the

wrong strategy

From order to payment a lunch should only take

30 to max 60 minutes

A quick serve menu specially conceptualized for speed and variety may be a good choice if your market is speed conscious

Combination menus served together are equally popular like: soup and sandwich, pasta and salad, bento box

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À La Carte Diner Menus

What is the reason for Dining?

Dinner menus are typically less hurried than all other meal periods. This allows to plan for a progression of courses.

• Once you know that your customers want multi-course choice, then you need to create the menu structure accordingly

• There is no one-size-fits- all structure until you understand the context and target market.

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The Traditional lay out of and a la carte Menu

How is food on the a la carte menu categorized?

The most common approach is in the order we are accustomed to eat

Appetizers

Cold

Soups

Warm Appetizers

These three groups can be listed as one group, starters or appetizers

Main courses / Entrees

Fish and Seafood dishes

Poultry

Meats

Vegetarian

These three groups can be listed as one group, Main courses or Entrees

Main course and entrees are commonly paired with vegetable, starch and sauces10

The Traditional lay out of and a la carte Menu

Desserts

Can be grouped into

Cold

Hot

Combinations

The dessert can be on a separate a la carte menu.

Cheese

Can be part of the dessert menu.

In the traditional sequence of French serving a meal, cheese followed the main course and was served before the dessert. In the UK and US it follows the dessert

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À La Carte Diner Menus - Substance

None traditional a la carte Menus work!

• Evaluate Menus 3.1 and 3.2 :

– Point out the differences from a conventional traditional a la carte menu

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Placeholder image

The Menu Life Cycle

3.1

3.2

À La Carte Diner Menus - Substance

None traditional a la carte Menus work!

• Both menus 3.1 and 3.2 are successful because :

– They subtly direct diners to make lots of choices before and after their Main course.

– They almost guarantee a repeat visit because many diners will want to continue to explore the menu.

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À La Carte Diner Menus – The Goal

• Guests know how much they want to eat, but that may be highly influenced by an array of creative choices.

• Categorization and grouping lead customers to purchase decisions.

• If you are deliberate about how you communicate à la carte offerings, what you want to sell becomes what your customers want to buy. This is the ultimate goal of a well designed menu!

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Non-alcoholic Beverage Menus

• Customers expect a markup, but how much is appropriate?

• The concept of price resistance explains the inverse relationship between prices and customer demand that eventually drives away purchases.

• As prices for an item increase, customers are less inclined to purchase that item.

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Price Resistance in Non-alcoholic Beverage Purchases

3.6

Non-alcoholic Beverage Menus

Choose one of this three Strategies for your Business?

1. Sell at the price you think appropriate and merchandise it without regard to price-resistance behaviors.

2. Sell these items for a modest markup and accept a low contribution margins from non alcoholic beverage sales.

3. Craft a distinctive beverage list that defies value decisions.

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Non-alcoholic Beverage Menus

The third and wholly different approach involves the making a distinctive beverage lists that has less price resistance.

• Include beverages that are unique to the market or contain ingredients with contemporary (or nostalgic) marketing cachet.

• You can also offer unique soft-drink formulations

• Origin, rarity, and method of preparation all connote value (this is how Starbucks gets $5.00 for a cup of coffee)

• If sold paired with specific food customers view purchase as additional value added

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Non Alcoholic beverage Menus for food paring

Paring food and none alcoholic drink

http://www.restaurantbusinessonline.com/archived-content/articles/non-alcoholic-pairings

http://www.kaveyeats.com/2011/03/drinks-pairings-for-food-and-soft.html

http://www.foodandwine.com/slideshows/nonalcoholic-drinks

http://www.culinarytrends.net/Beverage.html

http://www.petittea.com/page121.htm

http://www.arborteas.com/pages/tea-and-food-pairing.html#white

http://www.finewaters.com/Food_Pairing/Bottled_Water_Etiquette/Food_Matching/Matching_Water_with_Food.asp

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Glasses Of Alcoholic Beverages

• Why sell wine by the glass ?

• Is popular and enables diners the opportunity to match several beverages to the several courses of their meals

• Gives customers the opportunity to experiment to discover favorites.

• Allows the operator to provide samples to clients and motivate the sales

• Allows to make budget conscious decisions

• Does not force the customer to drink more than they wish

• The goal in designing a wine-by-the-glass list (the same is true for a bottle list) is to reinforce the dining experience you want to provide

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Glasses Of Alcoholic Beverages

• Match wine offering with the food offering.

• Taste your food, and if for example you describe it as:

• spicy, herbal, rich, unctuous, or meaty, then offer wines that have sufficient character as to complement these items.

• The nuances of your food should not be dominated by wines.

• There is no substitute for tasting wines before they are added to your wine list and matched to food

• Ask the experts to assist many of the distribution channels specialized in wine sales have an expert.

• Ask the wine maker23

Suggested Portion Sizes for Wines by the GlassFull Bottle 750ml, 75 cc or 0.75ltA standard pouring portion is 150mlGlass –to accompany appetizer 60 ml to 120 ml (pouring 12 portions to 6 portions)Glass –to accompany main courses 60ml to 180ml (pouring 12 portions to 4 portionsGlass –to accompany dessert 90ml to 120 ml (pouring 8portions to 6 portions)Carafe Quarter bottle 180mlHalf bottle 375ml

The Menu Life Cycle

3.2

Wine can also be sold in sizes other than a standard glass or bottle

Glasses Of Alcoholic Beverages

• Fermented beverages are also sold by the glass.

• Brewers package these products in bottles, cans, and kegs.

• A properly handled keg provides a fresh product that can be extremely profitable.

• Your beer selections should complement your foods.

• Ask the help of the expert to pair beer with food

• Artisanal beer brewing is and upcoming trend

• Beer is typically sold in 3ocl, 50cl and 75cl portions

• The portion size can be influenced by tradition glass ware.

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Portion size of Beer

http://craftbeeracademy.com 26

Wine and Fermented drinks by the Glass

Once a bottle of wine has been opened it has a certain shelf life

Once a keg of beer is taped it has a certain shelf life

Groups work on solutions to ensure that you manage this challenge while still fulfilling this guest need.

???

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Glasses Of Alcoholic Beverages

• Spirits

• Are sold by the glass, either

• straight (undiluted), on ice (“on the rocks”) or mixed as cocktails.

• International pouring standards a

• 2cl (20ml) to 4 cl (40m)

• Free pouring

• Should still follow and approximate measure

• Brand

• Many customers are quite opinionated about the brand that they wish to drink.

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Spirits and Food

• You should understand which spirit drinks complement your food menu.

• Tequilas, Tequila drinks …Mexican cuisine

• Bloody Marys and Mimosas…Brunch

• Arak… Levant cuisines

• Sake…. Asian cuisine

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Bottles Of Alcoholic Beverages

Wine menus are referred to as wine lists.

Wine sold by the bottle assures guests=

that they are enjoying the bottle at its peak.

Wines sold by the bottle are=

sealed and labeled so that specific identity can be assured.

Wine lists should be developed with an eye toward =

affordability, practicability, usability, compatible with concept, quality over quantity

Read about Bern’s steak house and find other such interesting example focus your learning on challenges, benefits and how such features are managed 30

Bottles Of Alcoholic Beverages

• Wine spectator talk!

• Breadth

• on a wine list is achieved by including many varietals or bottles from many producers.

• Depth

• is achieved by including many horizontal and vertical selections.

• Horizontal selection features bottles from a single year (vintage)from multiple producers or wineries.

• Vertical depth involves many selections from the same winery but from multiple vintages.

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Bottles Of Alcoholic Beverages

Customers should be able to purchase bottles of various sizes, including

splits of wine (187 ml)

half bottles (375 ml)

half liter (500ml)

The advantage Diners can have access to precious wines without the big-ticket

price tag of full-size (750ml) bottles.

The disadvantage

Can create a huge inventory

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Bottles Of Alcoholic Beverages

• Options available to organize the wine list

• Organize by country of origin.

• Organized by country of origin and geographical region per country

• France=bordeaux, burgundy /USA= california, washington sate

• Organized by country, geographical region, style, varietal, year, and wine maker

• USA, Red, California, Zinfadel, Year 2006 , Robert Mondavi

• Organized by the style

• sparkling, white, rose, red, dessert

• Organized by grape varietal

• chardonnay, pinot, merlot, blends, 33

Bottles Of Alcoholic Beverages

• Get help form an expert for a complex task.

• It should be evident that the complexity of wine origin and classification cannot be easily simplified.

• You must be educated (educate your self) on the subject of wines to design a moderate or extensive wine list.

• Many operators offer a limited selection of draft beers (fresh tasting and high-profit) but also offer a variety of bottled beers.

• Because nearly all bottled beer is pasteurized, it possesses extended shelf life.

• Top range bottle sales are sometimes used to create customer loyalty by offering a private beverage safe with in the restaurant.

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Bottles Of Alcoholic Beverages

• Spirits

• With two notable exceptions, spirits are normally not sold by the bottle for on-premise consumption.

• A full bottle dispensed to guests has a high potential to intoxicate. In many countries there are legal implications that you have to be aware of !

• The first exception is found in hotels:• guests may purchase sealed bottles of spirits, with all the

accompaniments delivered to their guestrooms.

• A second exception

• referred to as bottle service, is found in upscale clubs (“ultra lounges”).

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Food and beverage Pairing

In a food service establishment the beverages served should fulfill

The primary reason

satisfy the costumers need and provide the customer with what he likes

As the secondary reason the beverage selection should

enhance the food served

The third reason

it should add to the contribution margins (profit) of the establishment

You can gain a distinctive advantage when you become informed of how food and beverages is paired

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More in depth understanding for food and drink matching

http://www.bighospitality.co.uk/Special-Features/Food-and-drink-matching-trends

http://drinks.seriouseats.com/2011/10/the-basics-of-pairing-drinks-with-your-food.html

http://esake.com/Sake-Food/sake-food.html

http://www.sake-world.com/html/sake-food.html

http://www.buzzfeed.com/justinabarca/whiskey-and-food-pairings-that-will-make-your-mouth-wate

https://www.thebeercircle.com/beer-and-food-pairing

/

http://drinks.seriouseats.com/2013/03/basics-of-pairing-cider-and-food-suzanne-wolcott-goose-island.html

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