As the managers of the restaurant, the approach to this analysis is 'What should we do to better the outcomes and eliminate unnecessary costs?' " What items should be elimanate and what items should be changed?"
#6: ABC ME Analysis ABC ITEM ITEM MENU MENU FOOD PRICE OP GO0TS REVENUES COST 7.63 8.95 1.32 1,747.27 2,049.55 8.75 11.70 2.95 1,750.00 2,340.00 8.75 11.70 2.95 253.75 339.30 7.64 8.75 1.11 764.00 875.00 8.38 11.50 3.12 1,257.00 1,725.00 8.38 11.50 3.12 469.28 644.00 7.97 10.75 2.78 4,694.33 6,331.75 8.45 9.95 1.50 2,535.00 2,985.00 8.24 9.95 1.71 2,134.16 2,577.05 8.00 9.95 1.95 984.00 1,223.85 7.08 7.95 0.87 1,904.52 2,138.55 8.10 9.95 1.85 777.60 955.20 7.22 7.95 0.73 1,458.44 1,605.90 8.49 9.75 1.26 4,423.29 5,079.75 8.86 10.50 1.64 2,746.60 3,255.00 8.45 10.95 2.50 1,377.35 1,784.85 8.93 11.50 2.57 937.65 1,207.50 8.79 10.95 2.16 553.77 689.85 8.23 9.75 1.52 551.41 653.25 7.97 9.95 1.98 518.05 646.75 $31,837.47 $39,107.10
# SOLD (MM) 229 200 29 100 150 56 589 300 259 123 269 96 202 521 310 163 105 63 67 65 3,896
MENU MIX % (MM%) 5.88% 5.13% 0.74% 2.57% 3.85% 1.44% 15.12% 7.70% 6.65% 3.16% 6.90% 2.46% 5.18% 13.37% 7.96% 4.18% 2.70% 1.62% 1.72% 1.67% 100.0%
MENU OP 302.28 590.00 85.55 111.00 468.00 174.72 1,637.42 450.00 442.89 239.85 234.03 177.60 147.46 656.46 508.40 407.50 269.85 136.08 101.84 128.70 $7,269.63
MM OP % CAT. CAT. H L H H L H L L H H 1 H H H H L H L L H H L L L H L H L H L H H L H L H L L 1 H
MENU ITEM PF CLASS PLOW 0.83 STAR 1.62 ?? 0.24 DOG 0.31 STAR 1.29 ?? 0.48 STAR 4.50 PLOW 1.24 PLOW 1.22 ?? 0.66 PLOW 0.64 DOG 0.49 PLOW 0.41 PLOW 1.81 PLOW 1.40 STAR 1.12 ?? 0.74 ?? 0.37 DOG 0.28 ?? 0.35 1.00
MENU ITEM
Chopped Salad Chopped Salad w Chicken Chopped Salad w Tuna Arugula Pear Salad Arugula w Chicken Arugula w Tuna Cobb Salad Chicken Caesar Wrap BBQ Chicken Wrap Chicken Tender Wrap Cheeseburger Chicken Mushroom Burger Grilled Garden Burger Smoked Turkey & Avocado 440 Sandwich Turkey Club Signature Pasta Angel Hair Bolognese Traditional Tomato Basil Mac & Cheese
+
Ave. MM% 3.50%
Ave OP $ $1.87
Food Cost % 81.41%
#7: CM & ABC Analysis + Management Recommendations Compare the results from the CM and ABC analyses and make management recommendations according to the ABC ME analysis First things first = eliminate the Dog class menu items look at the PlowHorses and pay attention to the ones that rank lower in PF than others REMEMBER: when it comes to menu engineering, 0.9 to 1.1 is the best PF ranges Stars we WANT to keep; those are doing well, selling wise and profit wise the only one to look at is Cobb Salad because of the PF of 4.50 on the ABC and 3.36 on CM
Puzzles are similar cases to Plowhorses in a sense that if the PF is not close to the range that is ideal, what is the best way to fix that in many cases, we don't want to raise the price, however, we also don't want to lower the prices either looking at the current menu item prices, they seem reasonable, if not a bit