Chapter 8.5:The Menu

Explanation
The correct answer is "issuing". The question states that the manager has traced the problem to the flow of products from the storeroom to production areas. "Issuing" refers to the process of distributing or releasing products from the storeroom to be used in production. Therefore, focusing on improving the control point of "issuing" would help address the slow service issue by ensuring a smoother flow of products to the production areas.

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.

Explanation
*Remember your triangle*

Food cost/food cost percent=selling price

$3.50/0.30=$11.67

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

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

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

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.

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

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.

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.