“As Budget hits Recession …Bucks are in congestion…Belly’s locked its Dine-out fun!”
This economic downfall is a shock for the people who are up in the profit ladder, challenge for the owners in the middle and caution for the starters about to climb. This economic downfall though had swallowed profits and credits of various fields. It has feed numerous profit counts for the media, as it is the seasonal hit topic for them to deal with, to give news and earn quid out of it. The Restaurants so called the ever green Industry is now facing the spring, losing its greens in fall. The fast food restaurants under the shade faced no pain while the fine dining faces quake in their quid’s. The restaurants to survive are not an impossible deal but a challenging issue which could healthily survive following the balancing factors and basic techniques.
IS YOUR MENU AFFORDABLE OR OFFENDABLE?
To hit your target, the restaurant Owner must ever plan the cost line to be fair and which is normally 60 to 70 percent of the revenue in total which includes the wages, food and beverage cost, expenses, insurance, electricity, utilities and the monthly bills. To take a keen look at controlling the food costs, a key technique can be used with other utilizing factors known as Menu Engineering. It is nothing but planning, choosing, listing, pricing and appraising the menu sheet.( Michael L, Donald I ,1982)
The regular formula of ingredients cost price being the quotient when divided by the menu price is followed is continuity basis. But menu price lesser than the food cost is the menu planning methodology which contributes a margin to the food cost. Listing the menu based on its popularity and pricing it parallel to its demand will equally help for uplift.... [continues]
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(2010, 09). Management Research-Survival of Restaurant Industry in Recession. StudyMode.com. Retrieved 09, 2010, from http://www.studymode.com/essays/Management-Research-Survival-Of-Restaurant-Industry-In-405617.html
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