Abstract
Drawing from economic and consumer behavior theories, this study outlines four theoretical reasons for menu item dependency, asserting that the assumption of item independency is violated in menu-related product portfolio analysis. A case study of actual restaurant figures from two consecutive periods is analyzed. The data demonstrate how one such item dependency, namely loss leader pricing, affects the way in which the performance of several dishes is portrayed by two types of menu engineering models: the traditional, matrix-based approach and the multidimensional menu mix model. The results underscore the need for a better menu product portfolio model, one that adequately addresses the interdependent nature of restaurants' product portfolio.
| Original language | English |
|---|---|
| Pages (from-to) | 21-38 |
| Number of pages | 18 |
| Journal | Journal of Foodservice Business Research |
| Volume | 9 |
| Issue number | 1 |
| DOIs | |
| State | Published - 19 Mar 2007 |
Keywords
- Loss leader pricing
- Menu product portfolio analysis
- Restaurant profitability
ASJC Scopus subject areas
- Food Science