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Sales & MenusWhich Comes First

Maximize your MenuForecast Sales

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Today’s Lesson

• Sales Forecast•Menu Mix•Contribution to Margin•Menu item contribution• Stars, Puzzles, Plow Horse, Dog• The menu as a financial tool

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Sales Forecasting

• Total Number of Seats• Number of Tables• Two top, Four top, Family style dining• Take out• Bar service

• Number of turns• Daily volume• Maximize hours• Track & adjust

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Forecasting vs. Tracking

Forecasting is an educated estimate of potential sales• Use industry standards• Start with capacity• Adjust each month by % of capacity• Utilize Contribution Margin

Tracking monitors the movement and impact of menu items• Use actual sales numbers• Utilize Contribution Margin• Utilize Menu Mix

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Menu Engineering

Menu Mix: Comparison of individual menu item sales to total sales

Individual items sold/Total items sold

Contribution Margin: Each menu items profitability

Selling price – cost of item = CM

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Menu Classification

High

Higher in popularityLower in profit contribution

Low

Low

Hig

h

Cash Cows Stars

Higher than average in profit contribution

Keep minimumPromote

Lower than average popularity Higer in popularityHigher in profit contribution

Cont

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Comparison to Total Sales (Menu Mix)

Possible price increaseProminent menu position

Lower in popularityLower in profit contribution

Remove unless loss leaderHide los leaders

Price sensativeBuilds customers

Dogs Workhorses

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Calculating Sales

• By Check Average: the average sales generated by a single diner per meal period• By Meal Period: the average sales per meal

period (# seats x turns x average meal price)• By Type of Sale: Food sales per meal period &

Beverage Sales per meal period

Review several examples of sales forecasting templates to see which one works best for your operation.