Menu Analysis for Improved Customer Demand and Profitability in Hospital Cafeterias

Several sophisticated menu analysis methods have been compared in studies using theoretical restaurant menus. Institutional and especially hospital cafeterias differ from commercial restaurants in ways that may influence the effectiveness of these menu analysis methods. In this study, we compared three different menu analysis methods - menu engineering, goal value analysis, and marginal analysis in an institutional setting, to evaluate their relative effectiveness for menu management decision-making. The three methods were used to analyze menu cost and sales data for a representative cafeteria in a large metropolitan hospital. The results were compared with informal analyses by the manager and an employee to determine accuracy and value of information for decision-making. Results suggested that all three methods would improve menu planning and pricing, which in turn would enhance customer demand (revenue) and profitability. However, menu engineering was ranked the easiest of the three methods to interpret.