ABC ANALYSIS AS AN EFFECTIVE ANALYTICAL TOOL IN THE SYSTEMS OF MARKETING AND MANAGEMENT OF RESTAURANT BUSINESS ESTABLISHMENTS

No. 7 (2022), Articles
No. 7 (2022)

ABC ANALYSIS AS AN EFFECTIVE ANALYTICAL TOOL IN THE SYSTEMS OF MARKETING AND MANAGEMENT OF RESTAURANT BUSINESS ESTABLISHMENTS

Articles
https://doi.org/10.32782/tourismhospcee-7-1
Valentyna Ivanenko
Zhytomyr Ivan Franko State University
https://orcid.org/0000-0003-2231-8485
Tetiana Botsian
Zhytomyr Ivan Franko State University
https://orcid.org/0000-0001-8423-7424
Inna Klimova
Zhytomyr Ivan Franko State University
https://orcid.org/0000-0001-7412-379X
PDF (Українська)

Keywords

ABC Analysis
restaurant menu
sales promotion
volume of sales
revenue
profit
cost price
pricing

How to Cite

Ivanenko, V., Botsian, T., & Klimova, I. (2022). ABC ANALYSIS AS AN EFFECTIVE ANALYTICAL TOOL IN THE SYSTEMS OF MARKETING AND MANAGEMENT OF RESTAURANT BUSINESS ESTABLISHMENTS. Tourism and Hospitality Industry in Central and Eastern Europe, (7), 5-15. https://doi.org/10.32782/tourismhospcee-7-1
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Abstract

Modern dynamic changes in the environment require restaurant companies to constantly monitor and analyze their menus. In addition, in order for the restaurant business to consistently make a profit, it is necessary to be able to work with prices, an assortment and promotion. It is not enough just to form a menu, set the prices for the dishes and calm down. It is wise to introduce new dishes or remove familiar ones: to know what is popular with visitors, which positions are profitable due to large margins, and which positions have potential in terms of demand, but need to be improved. The article substantiates the feasibility of using the ABC-analysis of menu as one of the efficient instruments for pricing and analysis of a restaurant’s revenue. It is proposed to expand the capabilities of the classic ABC-analysis and it has been proved the expediency of use its multidimensional model in the restaurant business, which provides for the division of the entire range of dishes in the menu into three groups according to three parameters: sales volume (demand for a dish), revenue (turnover) and gross profit, which allows to get a comprehensive assessment in the form of a designation of three selected parameters from 27 possible options: AAA (ideal menu position, leader), BBB (popular dish with a certain group of guests, which brings average turnover and average profit), CCC (candidate for the removal from the menu) and etc. The mechanism for applying ABC-analysis to the assortment of sushi in a Japanese restaurant is also described and the conclusions are given for each of the formed groups, which made it possible to determine which dishes should be displayed, for which it is necessary to adjust the price or optimize the cost, as well as to identify the gastronomic preferences of visitors. Recommendations are given on ways to reduce the cost of dishes with a high food cost and to promote dishes that are most beneficial for the restaurant business through promotions on table tents and placemats, by allocating the best place in the menu and designating them with special icons or symbols.

https://doi.org/10.32782/tourismhospcee-7-1
PDF (Українська)

References

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