MENU DESIGN AND ENGINEERING

HTF552
Chapter 1
Know Your Customer

Aliffaizi Arsat
aliffaizi@salam.uitm.edu.my
LECTURE OUTLINE

Introduction

Demographics

Age Groups

Ethnic Origins

Education, Occupation and Income

Popularity Polls

Hashim Fadzil Ariffin 2

INTRODUCTION
One of the most important aspects of menu planning is
determining and defining the customer

The location of a restaurant – determines who will patronize it

People stay close to (a three-mile radius / ab. 8km) their homes

or places of work when dining out.

Important to know who resides or works within this area

Menu caters to customers in that particular area

Hashim Fadzil Ariffin 3

DEMOGRAPHICS
The study of location and potential customer is known as demographics.
The statistical data of a population showing average
age, income, education, etc

Two (2) factors must be evaluated: Four (4) sources of information:

Demographic study itself – 1. Feasibility studies

identifying the customer
in our market
2. Demographic surveys

Matching of these customers, 3. Psychographic studies

along with their needs and
preferences, to the proper menu
4. Personal knowledge
Hashim Fadzil Ariffin 4
DEMOGRAPHICS
1. Feasibility Studies

Definition: A creative, objective and rational process whereby

marketing and financial data are collected and analyzed

Attempts to predict with reasonable accuracy whether or not a

potential business will succeed or fail. Explore every variables

Important to menu planner

Demographics Competition
Hashim Fadzil Ariffin 5
DEMOGRAPHICS
2. Demographic Surveys

Demographic studies list the Restaurant expenditures

general population by: breakdown by category:

• Age group • Fast food

• Median age • Coffee shop
• Ethnic origins
• Fine dining, etc.
• Household type
• Marital status
• Occupation
• Education
• Housing
• Income
• No. of vehicles
Hashim Fadzil Ariffin 6
DEMOGRAPHICS
3. Psychographic Studies

Data referred to as VALS -preferences of population studied

Values Attitudes Lifestyles

How frequently How daring or traditional

they dine out? a groups is ?
Reveal
information
such as
Habits with regard to
How much they recreational, educational and
spend on average? cultural activities
Hashim Fadzil Ariffin 7
DEMOGRAPHICS
4. Personal Knowledge

Personal knowledge, even a feeling, for an area

Failure of a restaurant business is due to:-

Wrong menu listings Not knowledgeable management

Lack of working capital Poor service

Selling prices Poor quality

Dirty operation

The restaurant business comprises many details, each one affecting

overall performance. But it all starts with the menu.
A personal feel for the market is an important tool if used properly.
Hashim Fadzil Ariffin 8
DEMOGRAPHICS
Competition

Definition: In broad sense is any business that sells food

Strict sense- competition includes any foodservice that sells a similar

product at a price similar to your operation’s

Two types of competition:

Direct competition-other
Indirect competition- supermarket
restaurants
Hashim Fadzil Ariffin 9
DEMOGRAPHICS
Competition

Competition is healthy.
It promotes:

A good price-value relationship

Excellent service

A quality product

In a competitive market, businesses are forced to excel in order to succeed

A market can support only a given number of similar operations

The maximum numbers of competing business are operating in a market,

the situation is known as market saturation
Hashim Fadzil Ariffin 10
DEMOGRAPHICS
Competition

Market saturation is unhealthy to get into as number of available

customers spread is so thin. Personal knowledge is important.
Turning a problem into an opportunity.

Analysis of demographic study necessary for matching customers with

their needs and generalizations based on observation and experience.

Hashim Fadzil Ariffin 11

DEMOGRAPHICS
Putting Them Together

Best possible benefit: demographic and psychographic data

used in combination

Age Groups

Vital to proper menu selection. Age groups are bracketed as

follows:

Children Teens Young adults

Middle-aged adults Hashim Fadzil Ariffin Older adults 12

AGE GROUPS
Children

Influence and often dictate the decision as

to where a family will dine out

Heavily influenced by television, both

in advertising and programming

Hashim Fadzil Ariffin 13

AGE GROUPS
Children

Menu writer is torn between 2 sets of criteria:

1 Parents want their children to have a well-balanced meal

2 Children tend to opt for high fat, high-sugar,

high calorie food

Both parents (paying for the experience) and children

(influence the decision) must be satisfied. The experience
must be enjoyable for both.

Hashim Fadzil Ariffin 14

AGE GROUPS
Children

Both parents (paying for the experience) and children (influence

the decision) must be satisfied. The experience must be enjoyable
for both

Can cater to children by:

1 Special menus

2 Prizes

3 Clean-plate clubs
Hashim Fadzil Ariffin 15
AGE GROUPS
Teenagers

Pose special problems of their own

On one hand, they still cling to their childhood

eating habits; on the other hand, they are
beginning to mature into adulthood

Refining their tastes & requiring a nutritionally

balanced diet
Hashim Fadzil Ariffin 16
AGE GROUPS
Teenagers (Cont’)

Considered as two (2) separate market:

As part of family unit that is dining out. More nutritionally

1 oriented-result of parents coercion than independent choice

2 As a marketing of their own- revert to junk food syndrome

Large market with more disposable income

Portion sizes

Offer petite or small-appetite meals for teenagers & senior citizens

Hashim Fadzil Ariffin 17
AGE GROUPS
Young Adults

In the 25 – to 34 – year old age group.

Singles

Three (3) divisions: Couples with no children

Families

Hashim Fadzil Ariffin 18

AGE GROUPS
Young Adults (Cont’)

Overall, they are;

Health conscious Choosing vegetarian menus in

addition to traditional

Concerned about physical Affinity for burgers &

fitness- consequently about “junk foods”
lighter, healthier and more
natural food Trendy

Hashim Fadzil Ariffin 19

AGE GROUPS
Young Adults (Cont’)

Single Young married couples

have more disposable income Both partners are working – high

disposable income – large portion
do not cook, eat out more on eating out.

Purchasing a home – smaller

not as concerned with price
restaurant needs to be trendy with
appropriate décor & fun
menu offers variety that reflect
theme & decor
amount for eating out. Price
conscious
Raising a family – price conscious
& restaurants catering to children
& families become very attractive.

Hashim Fadzil Ariffin 20

AGE GROUPS
Middle-aged

Patrons from 35 – 54

Traditional in its menu selection, fairly sophisticated tastes, prefers fully

flavoured foods.

Patrons from 18 – 49 – preference for hamburgers & sandwiches & more

likely to eat out for lunch.
Hashim Fadzil Ariffin 21
AGE GROUPS
Middle-aged (Cont’)

Preferences for seafood, chicken, pasta entrée items & baked items

Strong desire for upscale treatments of “retro” or comfort foods

Mainstream and some non-mainstream ethnic cuisine – very
popular
Willing to try unfamiliar foods

Overall – strong preferences for familiar cuisines

Family dines out – price is a factor

Special occasions – price is less of a factor

Hashim Fadzil Ariffin 22

AGE GROUPS
Matures

Patrons aged 55 to 75

Prefers smaller portion Prior to retirement – price is less

of a factor
Balanced meal
After retirement – price becomes
Familiar food more important
Predominant mainstream ethnic
Coffee shops & cafeterias cuisine – very popular
Hashim Fadzil Ariffin 23
ETHNIC ORIGINS
Many members of ethnic groups do not partake exclusively basic foods
of their native land.

Stereotyping is a dangerous thing. Dietary needs of special

groups e.g. Jews, Muslims, Hindus, Buddhists & persons
from certain geographical areas

Important to note that particular foods appeal to certain

ethnic groups most of the time; this is not to suggest that
this holds true all the time.

Hashim Fadzil Ariffin 24

 EDUCATION, OCCUPATION &
INCOME
They are tied together – to influence each other.

Education & occupation play a minor role. Income key

factor – affordability for the market, specifically disposable
income.

Disposable income is that part of earnings & investment

income left over after basic needs have been met.

Hashim Fadzil Ariffin 25

POPULARITY POLLS
Available disposable income. Two (2) things happen:

1. People tend to eat

2. They tend to trade up
out more often

Available listings that are popular with restaurant-going population as a

whole.

Concerned with trends within a demographic area. Items altered to gain

customer acceptance.

Hashim Fadzil Ariffin 26

POPULARITY POLLS

Recognize the difference between fads & trends.

A fad is an idea that comes and

goes quickly. Following fads costs
Trends stay around for a while &
money
many times become the norm.
following trends can make
money. Aware of trends, do not
overreact. Avoid embracing the
trend completely
Hashim Fadzil Ariffin 27