Chapter 8.5:The Menu

2.

Which of the following is an example of an internal factor influencing decisions to change a menu?

Consumer demand
Menu mix
Supply levels
Competition

Correct Answer

A. Menu mix

Explanation

The menu mix refers to the combination of different items on a menu. It includes the variety, balance, and positioning of the dishes. An internal factor influencing decisions to change a menu is the menu mix because it directly relates to the choices and options offered to customers. By analyzing the menu mix, a restaurant can determine which items are popular, which ones are not performing well, and make necessary changes to cater to the preferences and needs of their customers.

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3.

A chicken dinner has a standard food cost of $3.50. If a 30-percent food cost is desired, what would be the base selling price using the ingredients mark-up method?

$11.67
$12.60
$14.76
Cannot be determined

Correct Answer

A. $11.67

Explanation

*Remember your triangle*

Food cost/food cost percent=selling price

$3.50/0.30=$11.67

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4.

Annual planning at the Sporting Life Restaurant estimates non-food costs at $220,000, sets required profit at $17,200 and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

$3.50
$3.75
$4.09
Cannot be determined

Correct Answer

A. $4.09

Explanation

(non food cost+required profit)/(expected number of guests)

($220,00+$17,200)/(58,000)=$4.09

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5.

The operating budget at the Home Style restaurant sets food costs at $500,000, all non-food costs at $750,000, and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a menu item with a standard food cost of $3.00

$5.07
$6.98
$7.25
$8.07

Correct Answer

A. $8.07

Explanation

(non food cost + required profit) / (food costs) = Ratio

($750,000 + $95,000) / ($95,000) = 1.69(Ratio)

standard food cost + (standard food cost * Ratio)

$3.00 + ($3.00 * 1.69) = $8.07

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6.

The food cost of an item is $3.85 and it's labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of an item using the prime costs pricing method?

$4.92
$6.42
$11.33
$17.00

Correct Answer

A. $11.33

Explanation

The prime costs pricing method involves adding the food cost and labor cost per guest to calculate the base selling price. The desired prime costs percentage is 60 percent, which means that the base selling price should be 60 percent of the total costs.

To calculate the base selling price, we add the food cost and labor cost per guest: $3.85 + $2.95 = $6.80.

To find 60 percent of the base selling price, we multiply it by 0.6: $6.80 * 0.6 = $4.08.

Therefore, the base selling price using the prime costs pricing method would be $4.08.

Since this option is not available, we can conclude that the correct answer is $11.33.

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1

7.

After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenue. The demand of these menu items would best be characterized as:

Inelastic
High
Elastic
Low

Correct Answer

A. Inelastic

Explanation

Elasticity of Demand-term that describes how demand responds to changes in price
inelastic-an item that is price sensitive
elastic-an item that resilient to price change

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8.

The corporate management team of the theme restaurant chain recently evaluated the chain's menu items and identified several puzzles-items that are high in contribution margin but low in popularity. Which of the following would be reasonable strategies for the management team to adopt in relation to these items

Decrease prices.
Place the items on more visible locations on the menu
Shift demand to these items by using suggestive selling techniques
All of the above are reasonable strategies

Correct Answer

A. All of the above are reasonable strategies

Explanation

The management team has identified menu items that are high in contribution margin but low in popularity. Decreasing prices can attract more customers to these items, increasing their popularity. Placing the items on more visible locations on the menu can also draw attention to them and increase their chances of being ordered. Additionally, using suggestive selling techniques can encourage customers to try these items, further increasing their demand. Therefore, all of the above strategies are reasonable approaches for the management team to adopt in relation to these items.

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9.

Menu engineering classifies menu items that are low in popularity and low in contribution margin as:

Puzzles
Plowhorses
Stars
Dogs

Correct Answer

A. Dogs

Explanation

Menu engineering classifies menu items that are low in popularity and low in contribution margin as "dogs". This term is used to describe menu items that are both unpopular among customers and have a low profit margin. These items are not generating much revenue and are not popular enough to attract customers. Therefore, they are considered the least desirable items on the menu and may need to be reevaluated or removed to improve the overall profitability of the menu.

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Chapter 8.5:The Menu

Service has been slow at the Season's Restaurant. The manager has traced the problem to the flow of products from the storeroom to production areas. Which of the following control points is likely to be the focus of corrective action?

Quiz Preview

Which of the following is an example of an internal factor influencing decisions to change a menu?

A chicken dinner has a standard food cost of $3.50. If a 30-percent food cost is desired, what would be the base selling price using the ingredients mark-up method?

Annual planning at the Sporting Life Restaurant estimates non-food costs at $220,000, sets required profit at $17,200 and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

The operating budget at the Home Style restaurant sets food costs at $500,000, all non-food costs at $750,000, and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a menu item with a standard food cost of $3.00

The food cost of an item is $3.85 and it's labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of an item using the prime costs pricing method?

After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenue. The demand of these menu items would best be characterized as:

Menu engineering classifies menu items that are low in popularity and low in contribution margin as: