Korean Journal of Community Nutrition

Original Articles

[English]
Using Activity-Based Cost in Menu Engineering for Restaurant Menu Analysis: Bong Shik Lee, Seo Young Shin, Mi Kyung Choi; Korean J Community Nutr 2006;11(5):642-649. Published online October 31, 2006

Abstract PDF: The purposes of this study were to investigate methods of applying activity-based cost to menu engineering and to examine the feasibility. A total of 6 menu items of XYZ restaurant in Seoul were selected and the ledger of September 2005 was used for menu analysis. The menu mix percent of beef sirloin steak (61.95%) and beef tenderloin steak (17.13%) were labeled as high, whereas BBQ pork ribs (4.94%), salmon fillet (2.66%), seafood platter (5.77%), and teriyaki chicken (7.56%) showed low menu mix percent. In addition, the contribution margin for BBQ pork ribs (29,000 won), salmon fillet (25,810 won), seafood platter (22,400 won), and teriyaki chicken (22,000 won) were higher than the average contribution margin (21,957 won), and those for beef sirloin steak (21,200 won) and beef tenderloin steak (21,900 won) were lower than average. When popularity and contribution margin were applied in menu engineering, BBQ pork ribs, salmon fillet, seafood platter and teriyaki chicken were classified as puzzles and beef tenderloin steak and beef sirloin steak as plowhorses. Menu engineering using popularity and operating profit, which was calculated from activity-based cost, also gave the same results, whereas the additional label for activity cost placed BBQ pork ribs and salmon fillet in the brain teaser category. Ranking analysis on variables estimating menu profitability using Spearman's rho revealed that there were no significant correlation between variables, which means the estimation of menu item profitability could differ by methods of analysis. With these results, it was concluded that activity-based cost would help to establish more detailed marketing strategy for a restaurant.

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[English]
Development and Application of Menu Engineering Technique for University Residence Hall Foodservice: Il Sun Yang, Hae Young Lee, Seo Young Shin, Hyun Wook Do; Korean J Community Nutr 2003;8(1):62-70. Published online February 28, 2003

Abstract PDF: This article aims to summarize the development and application of menu engineering technique, 'Menu Engineering Modified by Preference (MEMP)'. The site selected for this project was a foodservice operation in Yonsei University residence hall. Sales and food costs data were collected from the daily sales reports for 1 month, and the survey of food preference was conducted during May, 1999. Statistical data analysis was completed using the SAS/Win 6.12 for descriptive analysis. The calculation for menu analysis were carried out with MS 2000 Excel spreadsheet program. This MEMP technique developed had 6 category criteria and 2 dimensions of the contribution margin (CM) and the menu mix modified% (MMM%). The MMM% was calculated by the sales volumes and also weighted by food preference. The CM and MMM% for each item were compared with a mean menu CM as well as a 70% rule. Four possible classifications by MEMP were turned out as 'STAR', 'PLOWHORSE', 'PUZZLE', 'DOG'. 'STAR' items were the most popular and profitable items and required to maintain rigid specifications for quality. The decision actions for 'PLOWHORSE' menu items which were relatively popular, but yield a low menu average CM included combining a plowhorse item with lower cost products and reducing the frequency of serving or serving size. There was a need for 'PUZZLE' items to be changed in the menu combination, improve recipe, and promote menu. The last 'DOG' items were desired to be deleted. This study demonstrates that menu information can be interpreted more easily with MEMP. The use of MEMP is therefore an effective way to improve management decisions about menu of university residence hall foodservice.

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