Target costing and menu analysis in competitiveness: Implementation in a banquet invitation menus and results

The purpose of this study is to analyze the banquet invitation menus offered as fixed in the hotel and examine the factors that will contribute to the hotel as a result of this analysis within the scope of satisfaction and cost-oriented understanding and target costing. For this purpose, since the universe of the study constitutes a single enterprise, the case study method was used, and the data were obtained as a result of the information obtained from the survey and the enterprise. The sales data of the menus presented by relevant hotel in the banquet invitation organizations between May 2019 – November 2019 and from the standard recipes containing the food costs of the 6 fixed menus was obtained for contribution rate and their degree of preference for the menus. In addition, in order to reconcile which functions should take be taken into consideration without creating dissatisfaction with a customer-oriented approach on the quality axis, with the strategies as a result of menu analysis, 53 invitees who get service at the relevant periods were asked questions about the functions associated with the menu and the menu with face to face survey method. As a result of the study, considering the data of 6 fixed menus subjected to menu analysis and the functions obtained from the survey for Menu 1 in the ''Plowhorses'' and Menu 4 in the ''Stars'', in order to increase the co-payments of the menus, cost reductions were made in these menus based on the portion size factor, which is less important for the invitees. However, considering that menu diversity is also important for customers, the half portion practice has reduced the cost without disturbing the variety in the menus. While Menu 1 and Menu 4, which are subjected to classical menu analysis again within the scope of target cost, increased the average contribution, no change was made in the menu matrix. In addition, considering the impact of the coronavirus pandemic (Covid-19), a target cost formula was created in 2021, taking into account the CBRT's 2021 exchange rate increase expectation rate, with the view that the targeted profit margin will remain constant. Keywords: Cost Reduction, Banquet Invitation Menus, Fixed Menu, Target Costing, Menu Analysis