Reengineering_Hospitality_Education_in_Nigeria

MENU ENGINEERING: A CORPORATE STRATEGY FOR REPOSITIONING FOOD SERVICE BUSINESS IN NIGERIA (A Case of selected food service industry in Benin City). BY BELLO .Y.O and BELLO M.B DEPARTMENT OF HOSPITALITY MANAGEMENT AUCHI POLYTHEHNIC AUCHI, EDO STATE. Abstract Food service business in Nigeria is fast developing .The rate at which people invest in the sector in recent years is highly encouraging. However, it is surprising to know that only very few among many of these establishments being established yearly could be sustained. However, the very view that exists continues to suffocate as the industry profitability is badly squeezed because the prices of food service products are forced down while the customers services expectations increases – a phenomenon that can be traced to poor application of strategic management principles and lack of mechanism for identifying and classification of brands of food products being offered at food service centers. The research adopted a survey approach and sample size of twenty. NOVA and simple percentage were used for the analysis. The findings show that about 75% of the managers in the Nigeria food service business based their menu planning and constructions principles on mere experience rather that scientific approach. Ignorance was identified as the major factor inhabiting operators from applying menu engineering principles. Also the finding shows that application of menu engineering principles can enhance organization efficiency, maximize profits, and improve sales. Thus, it was recommended that workshop; seminars should be organized by the professional association concerned to train Nigeria food service operators on the contemporary food service system. Graduates of hospitality management should be employed to work in food service centers. Key Words; Menu, Corporate, Menu Engineering, Food service business. Introduction The prevailing economic situation has put tremendous strain on the resources available to most industries and more so to the food service sector which bears the often exciting but admittedly onerous task of providing the much needed support to all other performing sectors of the economy (Bello and Adesuyan 2009). It is pertinent to know that increased competition for available economic resources is heightened by the deteriorating economy which is characterized by uncertainty, stagnation, infrastructural inefficiencies, high domestic inflation, and low purchasing power (Bello et al 2007). Due to the decline in the purchasing power, absence of international financial aids and support, and current social-political situation in Nigeria, confidence in food service business success in Nigeria is very low. A keen observation of the contemporary food service business in Nigeria shows that only very few among many being established yearly could be sustained (Adebayo et al 2007). However the few once that exists continues to suffocate as the industrial profitability is badly squeezed because prices of food products in the food service centers are forced down while the customer service expectations have risen tremendously as a result of increased choice and conscious customers awareness- a situation that signals danger to the economic analysts and all the stakeholders in the food service business. Repositioning this unfavorable trend calls for improved management practices and carefully identification of brands of food products and services to offer at a point in time as this can help determine the success of the business. Thus, the focus of this paper is to examine if the Nigeria food service managers applies the concept of menu engineering in the course of their business operations, and if not, the paper wish to know factors that may be responsible for non-application of the concept. Theoretical framework: - Menu Engineering. Various definitions were given by authors to this important strategic management concept. Alugbo (2002) suggested that menu engineering is a four cell BCG matrix form used to categories brands of food products according to weather it is high or low on the dimensions of markets share and market growth. Day (1997) viewed the concepts as a scientific approach to managing diverse brand of food products by viewing them together as a portfolio of products, thus using a small number of fundamental criteria namely: market share and market growth. David et al (2003) defines the concept as an approach to menu analysis which uses two key factor of performances in the selecting and sales of individual menu items: that is, the popularity and the gross profit contribution of each item. This enables the mangers to assigned products to any of the four cells most appropriate and suited. The definitions given above shown that menu engineering is a sustainable and scientific guidelines that caterers applies in identification, production, packaging and presentation of food products accomplished with the state of the art service to achieve customer’s satisfaction and high yield of profitability to the organization. Menu Engineering As Applied To Food Product Classification and Management. [pic] Menu classification and management is the engine power for a successful food service business. In the past, food service operators in Nigeria have increasingly depended on experience in menu formulation and construction rather than the usage of scientific approach. Thus, the reason food service outlets in Nigeria could not be sustained. The working principle of this concept involves that mangers should place each of their food products line on the BCG matrix table and identify weather the food product is a Star, Question mark, Dog and Cash- cow, with corresponding implication for strategic decision about the product brand in future. Star Menu/Food Products: - These are product brands with high market growth that is, (profit contribution) and high popularity or market share that is, (sales). For example, farinaceous dishes, Pasta, Fresh fruits, Rice and rice products, Spaghetti, and so on were identifying by Bello and Bello (2010) as the star menu of the food products. The inclusion of this set of dishes on the menu list on daily basis was canvassed by the authors as being compulsory because its profit contribution to the business is high and it has a marketability potential. However, in attempt to sustain this menu on the business ,the mangers are advice to:- - Modify its price slightly. - Promote the menu. - Menu repositioning. - Do nothing if all things being equal. Cash Cow Menu/Food Products: - These are the food products with low market growth that is, (Profit contribution) and high popularity or market share that is, (Sales). For example, Snacks, confessionary, pastry products and so on may be classify in this category. The inclusion and sustenance of these set of dishes on the menu list involves the manager’s ability to:- - Increase its price of the food slightly. - Reduce production cost. - Quantity modification/control and or - Recipe modification. Question Mark Menu/Food Products: - These are food products with low relative market share and high market growth. That is, the sales potential of the products is low while its profit contributions are high. For example soup – Appetizer, Farmhouse, Isi-ewu and so on. The inclusion of these set of products on the menu list always involves the mangers ability to:- - Re-name the dish or dishes. - Reduce price slightly and - Re-positioning the dishes quality. Dog Menu/Food Products: - These are food products with low popularity- relative’s market share, and low profit contributions. Savories, Fiesta, Liver- pate, Sapala, Aadun and so on are typical examples of this category of dishes. The mangers are recommended to:- - Remove such dish/s from the menu. - Re-designing the menu - Modify dish quality and quantity - Embarking on aggressive marketing and so on. Methodology The research methodology employed for this study was a survey approach. Managers, Supervisors, Chefs, and sales officers of some selected food service firms all in Benin city, Edo state were used for the study. The sample size from the studied population was two hundred (200). Thus the basis for the quantity of the questionnaires which were distributed to the above mentioned officer of each of the selected food service firms. Journals and text books provided the secondary data. Simple percentage, Chi square, and ANOVA were used for the analysis. Data Presentation and Analysis Table 1: The extent to wish menu engineering principles is being applied in the Nigeria food service business. |RESPONSES |FREQUENCY |PERCENTAGE (%) | |Never applied |110 |55 | |Partially applied |40 |20 | |Always applied |50 |25 | |TOTAL |200 |100 | Source: Field survey 2010. From table I above, 55% of the respondents have not applied the concept on the job. 20% applied the concept partially. While only 25% always applied the concept. The index in the above information shows that most manger and the senior personnel in the Nigeria food service firms based their menu planning and construction operations on experience rather than scientific approach. Thus, they had not being applying the concept on the job. This might be responsible for poor sustenance of the food service business in Nigeria. Table 2:- Factors responsible for non application of menu engineering concept in Nigeria food service business. |RESPONSES |FREQUENCY |PERCENTAGE (%) | |Not applicable to the Job |30 |15 | |Not aware of the concept |80 |40 | |Method too difficult |80 |40 | |Management do not want the tool |10 |5 | |TOTAL |200 |100 | Source: Field Survey 2010 From the table 2 above, about 40% of the respondents were of the opinion that the concept is too difficult to apply, and another 40% of the respondents blamed their non application of the concept on the job on ignorance. While only 15% feels that the concept is not applicable to their job. The index in the above information shows that ignorance is the major factor inhabiting the Nigeria food service mangers from applying the concept. Table 3: Benefits of applying menu engineering concept to the food service business. |RESPONSES |MANAGERS |CHEFS |SALES OFFICER |SUPERVISOR |TOTAL | |Highly Beneficial |32 |36 |37 |20 |125 | |Not Beneficial |19 |7 |13 |6 |45 | |Indifference |8 |12 |4 |6 |30 | |TOTAL |59 |55 |54 |32 |200 | Source: Field Survey 2010 Null and Alternatives Hypothesis: H0: Application of menu engineering principles will not lead to organization inefficiency. H1: Application of menu engineering principles will lead to organization inefficiency. DF = (r-1) (c – 1) = (3-1) x (4 -1) = 6 X2 cal = 10.25 From the table X2 0.056 = 15.507 Decision Rule: Since the value of x2 Calculated falls outside the reject region, the null hypothesis is accepted. Thus, concluded that the application of menu engineering will not lead to organization inefficiency. Table 4:- Decision on if the application of menu engineering principle should be encouraged in The Nigeria food service business. |RESPONSES |MANAGERS |CHEFS |SALES OFFICER |SUPERVISOR |TOTAL | |Yes |96 |108 |60 |111 |- | |No |38 |14 |12 |26 |- | |Indifference |8 |12 |6 |8 |- | |∑X |142 |134 |78 |145 |499 | |[pic] |47.33 |44.67 |26 |48.33 |166.33 | |∑X2 |10724 |12004 |3780 |13061 |39569 | Using 5% level of significance Null and Alternative Hypotheses: Ho: Non application of Menu engineering principles in food service businesses in Nigeria should not be encouraged. H1: Non application of Menu engineering principles in food service businesses in Nigeria should be encouraged. S calculated: TSS = ∑X 2 - ( ∑X )2 = 37839.8 n TRSS = nj[pic]2 - (∑x)2 = 997.26 n ESS = TSS - TRSS = 36842.54 MS Calculated: TRMS = TRSS = 332.42 R-1 EMS = ESS = 4605.32 N-r Fcal = TRMS = 0.072 EMS From table, F0.05 = 4.07 3, 8 Decision Rule: Since the value of Fcal. falls outside the reject region therefore, Null hypotheses is accepted. Thus, concluded that non application of menu engineering concept in food service business in Nigeria should not be encouraged. Summary of Findings, Conclusion and Recommendations Summary of Findings Giving the information from our analysis, the study shows that about 75% of the managers in the Nigeria food service firms based their menu planning and construction on experience rather than scientific approach. Ignorance was identified as the major factor inhabiting the Nigeria food service operators from applying the techniques as about 55% of the operators blamed their non usage of the concept on ignorance and poor knowledge of the concept. The study also revealed that the application of the techniques will not cause organizational inefficiency. Thus the need for its application in the Nigeria food service industry should be encouraged. Conclusion and Recommendations Since the major factor that impedes the wide spread non application of menu engineering principles in the Nigeria food service firms is ignorance, the authors thus recommended that the professional body’s in the sector should organize workshop and other related training programs to on the importance and application to update their members on the importance of contemporary techniques and practices in daily operations of food service firms. This will enable them conform to the global industrial practices. Also, companies should be encouraged to engage the services of the trained personnel or administrators that possessed adequate knowledge on strategic management principles and skills required for applying scientific approach to management of the food service businesses. Finally the application of this concept will also benefit the food service industry economically hence, it will: i. Enhance high sales turnover. ii . Improve customer loyalty and satisfaction. iii. Ensure maximum utilization of production resources for economic benefit of the firm. References Alugbo (2002), Common Concern of Mangers, Achugn Publication, Owerri, Imo State P. 14. Adebayo N,I, Bello Y.O, Olatunji, T and, Oso G.K (2007),Application of Menu Engineering concept in fast food product development and management-An appraisal. International Journal of Food, Hospitality and Tourism. Vol. 1.pg 60-61. Bello Y, O and Bello M.B. (2010) Basics of Food Production. Ondo. Grace Excellent Publishers .Pp 145-146. Bello Y, O and Adesuyan A.J. (2009) Hospitality Economics (a simplified approach) Ondo Grace Excellent Publishers. Pg 1. Bello Y.O, Olatunji, C and, Famojuro, O (2007), Touristification of the Nigeria Tourism Resources For sustainable Economic Development. International Journal of Science, Engineering and Environmental Technology. Vol 2. No. 1. Pg. 187. Day R.C. (1997) Industrial organization and Management, New York Harper and Row Publishers Inc. David R. Victor C, and Roland K (2003). The Theory of Catering, Holder and Stoughton Education London PP.322-325.