Food And Beverages: Trivia Quiz On The National Restaurant Association!

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  • 1/53 Questions

    The buying decision for a take-out or delivery meal is usually made when:

    • Several days in advance
    • One day before
    • Less than one hour before the meal
    • In the morning
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About This Quiz

Below is a Trivia Quiz on the National Restaurant Association, concerning food and beverages that are perfect for everyone starting a restaurant business. The food industry can be a very tricky place to start a business, but with the correct smarts, you are sure to do a business that stands the storm of time. How knowledgeable are you as a restaurateur, well take the quiz to find out!

Food And Beverages: Trivia Quiz On The National Restaurant Association! - Quiz

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  • 2. 

    The purpose of promotion is to inform, persuade and remind.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The purpose of promotion is to inform customers about the product or service, persuade them to make a purchase, and remind them about the brand. Promotion is a key marketing tool used to create awareness, generate interest, and ultimately drive sales. By informing customers about the features and benefits of a product, persuading them to choose it over competitors, and reminding them through various marketing channels, promotion aims to influence consumer behavior and increase sales. Therefore, the statement that the purpose of promotion is to inform, persuade, and remind is true.

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  • 3. 

    The two largest segments of the commercial foodservice industry are casual dining and quick-service restaurants

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Casual dining and quick-service restaurants are indeed the two largest segments of the commercial foodservice industry. Casual dining restaurants typically offer a more relaxed and upscale dining experience, with table service and a wider range of menu options. On the other hand, quick-service restaurants, also known as fast-food restaurants, focus on providing fast and convenient service with limited menu options. These two segments cater to different customer preferences and collectively dominate the commercial foodservice industry.

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  • 4. 

    According to the Nation restaurant Association's Restaurant Inustry Operations Report, the median pre-tax profits for full-service restaurants rangers from 3.2%-5.4% of sales.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true. According to the Nation Restaurant Association's Restaurant Industry Operations Report, the median pre-tax profits for full-service restaurants range from 3.2% to 5.4% of sales. This means that on average, full-service restaurants make a profit that is between 3.2% and 5.4% of their total sales.

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  • 5. 

    A restaurant's life cycle includes:

    • Introductory and decline stages

    • Maturity and growth stages

    • Both A and B

    • None of the above

    Correct Answer
    A. Both A and B
    Explanation
    The correct answer is "Both A and B". A restaurant's life cycle includes both the introductory and decline stages, as well as the maturity and growth stages. This means that a restaurant goes through a period of introduction and establishment, followed by a period of growth and maturity, and eventually may experience a decline.

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  • 6. 

    Key success factors in determining a restaurant's success include:

    • The right concept and meeting customer expectaions

    • Qualified labor and delivering good customer service

    • Both A and B

    • None of the above

    Correct Answer
    A. Both A and B
    Explanation
    The correct answer is Both A and B. The success of a restaurant depends on having the right concept and meeting customer expectations, as well as having qualified labor and delivering good customer service. A restaurant needs to have a unique and appealing concept that attracts customers and meets their expectations in terms of food, ambiance, and overall experience. Additionally, having a well-trained and qualified staff who can provide excellent customer service is crucial for the success of a restaurant. Therefore, both A and B are key success factors in determining a restaurant's success.

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  • 7. 

    Proper selection of the parts of the promotional plan will consider:

    • Media selection and planning

    • Budgeting

    • Necessary response

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The proper selection of the parts of the promotional plan will consider media selection and planning, budgeting, and the necessary response. Media selection and planning involves choosing the most effective channels and strategies to reach the target audience. Budgeting is essential to allocate resources and determine the financial feasibility of the promotional plan. The necessary response refers to evaluating the effectiveness of the plan and making adjustments as needed. Considering all of these factors is crucial for a successful promotional plan.

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  • 8. 

    Regulatory issues facing foodservice operators include

    • Minimum wage laws

    • Health care reform

    • Taft-Hartley act

    • Both A and B

    Correct Answer
    A. Both A and B
    Explanation
    The correct answer is "Both A and B". Regulatory issues facing foodservice operators include minimum wage laws and health care reform. Minimum wage laws determine the minimum amount that employers must pay their employees, which can impact the labor costs for foodservice operators. Health care reform refers to changes and regulations in the healthcare system, which can affect the costs and requirements for providing healthcare benefits to employees. Both of these issues are important considerations for foodservice operators in terms of compliance and managing costs.

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  • 9. 

    The function of a menu is

    • To list various products offerings

    • Serve as a contract with the customer

    • To provide an essential marketing function

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A menu serves multiple functions. Firstly, it lists various product offerings, allowing customers to see what is available to them. Secondly, it serves as a contract with the customer, as they can choose and order items from the menu. Lastly, a menu provides an essential marketing function by showcasing the products and enticing customers to make a purchase. Therefore, the correct answer is "All of the above."

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  • 10. 

    IF you know the menu selling price should be $22.50 and that your food cost percentage should be 32%, then the menu item should cost you about how much to prepare?

    • There is not enough information to answer this question

    • 5.65

    • 7.20

    • 7.00

    Correct Answer
    A. 7.20
  • 11. 

    When determining the correct purchasing amounts an important consideration would be the par stock level.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The par stock level is an important consideration when determining the correct purchasing amounts. This level represents the minimum quantity of inventory that should be maintained at all times to meet the demand and ensure smooth operations. By setting the purchasing amounts based on the par stock level, businesses can avoid stockouts and overstocking situations, optimizing their inventory management and reducing costs. Therefore, the statement is true.

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  • 12. 

    The most important thing to consider when developing a menu is

    • The equipment available

    • The customers

    • What type of food you want to serve

    • Food availability

    Correct Answer
    A. The customers
    Explanation
    When developing a menu, the most important thing to consider is the customers. This is because the menu should be designed to cater to their preferences, dietary restrictions, and overall satisfaction. By understanding the target audience and their preferences, restaurants can create a menu that appeals to their customers' tastes and desires. This can lead to increased customer satisfaction, repeat business, and overall success of the restaurant.

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  • 13. 

    FIFO stands for:

    • Food Inventory For Operations

    • First in First Out

    • Final In Final Out

    • Final Inventory Food Orders

    Correct Answer
    A. First in First Out
    Explanation
    FIFO stands for "First in First Out." This term is commonly used in inventory management and refers to the practice of using or selling the oldest stock first before using or selling newer stock. This ensures that perishable items or items with expiration dates are used or sold before they become obsolete or expired. The concept of FIFO is widely used in various industries, including manufacturing, retail, and food services, to maintain product quality and minimize waste.

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  • 14. 

    In a study done by the National Restaurant Association, what two issues were mentioned as taking on greater importance in terms of customer decision-making?

    • Price and service

    • Technology and marketing

    • Convenience and value

    • Safety and quality

    Correct Answer
    A. Convenience and value
    Explanation
    The National Restaurant Association study found that convenience and value have become more significant factors in customer decision-making. This implies that customers are increasingly prioritizing the ease and accessibility of dining options, as well as the perceived worth or benefits they receive from their dining experience.

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  • 15. 

    If your food cost target is 32% and you know that a menu item costs you $3.75 to make, what would be the best selling price for the item?

    • 10.95

    • 8.95

    • 14.25

    • 11.75

    Correct Answer
    A. 11.75
    Explanation
    To calculate the best selling price for the item, we need to consider the food cost target of 32%. This means that the cost of the item should be 32% of the selling price. Let's assume the selling price is x. Therefore, 0.32x = $3.75. Solving for x, we get x = $3.75/0.32 = $11.71875. Rounding up to the nearest cent, the best selling price for the item would be $11.75.

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  • 16. 

    From the following, the best example of a fine-casual service restaurant would be 

    • Chili's

    • Wendy's

    • Applebee's

    • Cheesecake Factory

    Correct Answer
    A. Cheesecake Factory
    Explanation
    The Cheesecake Factory is the best example of a fine-casual service restaurant because it offers a combination of high-quality food and a casual dining experience. It is known for its extensive menu, which includes a wide range of dishes, including appetizers, entrees, and of course, a variety of cheesecakes. The restaurant provides a comfortable and relaxed atmosphere for customers to enjoy their meals, making it a popular choice for both casual dining and special occasions.

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  • 17. 

    If you know that an item cost you $3.15 to make and you sell it for $9.75 would this be acceptable to the owner who has requested that you maintain a food cost between 32-33%?

    • No, because the food cost percentage for that item is too high.

    • Yes it should be acceptable since it is within the required food cost percentage

    • There is not enough information to answer this question

    • No, because the food cost percentage for that item is too low.

    Correct Answer
    A. Yes it should be acceptable since it is within the required food cost percentage
    Explanation
    The owner has requested that the food cost be maintained between 32-33%. Since the item is being sold for $9.75 and costs $3.15 to make, the food cost percentage can be calculated by dividing the cost of the item by the selling price and multiplying by 100. In this case, the food cost percentage is (3.15/9.75) * 100 = 32.31%. Since this falls within the required range of 32-33%, it would be acceptable to the owner.

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  • 18. 

    One of the best methods to use for quantifying the overall strength of a menu or one item relative to another is 

    • Item cost

    • Moving average

    • Menu points

    • Menu engineering

    Correct Answer
    A. Menu engineering
    Explanation
    Menu engineering is one of the best methods to use for quantifying the overall strength of a menu or one item relative to another. Menu engineering involves analyzing the profitability and popularity of menu items to strategically design a menu that maximizes profits. By categorizing menu items into different categories based on their profitability and popularity, menu engineering helps identify the strong and weak items on a menu. This allows restaurants to focus on promoting and optimizing the profitable items while making necessary adjustments to improve the weaker ones.

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  • 19. 

    During a restaurant's maturity stage:

    • Sales increase at a decreasing rate

    • Sales decrease at an increasing rate

    • Sales increase at an increasing rate

    • Sales decrease at a decreasing rate

    Correct Answer
    A. Sales increase at a decreasing rate
    Explanation
    During a restaurant's maturity stage, sales increase at a decreasing rate. This means that the restaurant is still experiencing growth in sales, but the rate of growth is slowing down. This could be due to market saturation, increased competition, or a shift in consumer preferences. As the restaurant reaches its maturity stage, it becomes more challenging to attract new customers and maintain the same level of growth as before. However, the restaurant is still generating more sales, just at a slower pace compared to earlier stages.

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  • 20. 

    A menu pricing system in which the raw food cost plus the labor cost involved in preparing the item is divided by the desired food cost percentage in order to arrive at a selling price called:

    • Marginal pricing

    • Prime cost

    • Factor plus method

    • Gross markup

    Correct Answer
    A. Prime cost
    Explanation
    Prime cost is a menu pricing system that calculates the selling price by dividing the sum of raw food cost and labor cost by the desired food cost percentage. This method ensures that the selling price covers both the cost of ingredients and the labor involved in preparing the item, while also taking into account the desired profit margin. It is a comprehensive approach to pricing that considers both the direct costs and the desired profit of the business.

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  • 21. 

    Home meal replacement is a foodservice program designed:

    • To encourage to eat out in a local restaurant to replace the home-cooked meal.

    • To sell take-out or meal components to minimize or replace cooking at home.

    • By grocery store to encourage shoppers to eat a meal in the grocery store to replace eating home or in a restaurant

    • As a marketing campaign by quick-service restaurants to encourage families to replace their at home meal with a meal eaten with the family at the restaurant.

    Correct Answer
    A. To sell take-out or meal components to minimize or replace cooking at home.
    Explanation
    The correct answer is to sell take-out or meal components to minimize or replace cooking at home. This is evident from the statement that the foodservice program is designed to "minimize or replace cooking at home." This suggests that the program aims to provide convenient options for people who do not want to cook or do not have the time to cook at home. Selling take-out or meal components allows individuals to still have a home-cooked meal without the effort of cooking from scratch.

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  • 22. 

    Convenience and cost are the most important factors in the dining decisions of:

    • Travelers

    • Seniors

    • Students

    • Workers

    Correct Answer
    A. Students
    Explanation
    Students are more likely to prioritize convenience and cost when making dining decisions compared to other groups. This is because students often have limited budgets and busy schedules, making it important for them to find affordable and easily accessible dining options. Additionally, students may not have access to full kitchens or cooking facilities, further emphasizing the need for convenient dining choices.

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  • 23. 

    A franchisee is one who:

    • Grants the right to another to market the company's concepts

    • Is granted the right to market a company's concepts

    • Contracts with another to run a restaurant

    • Partners with distributors to reduce costs in a foodservice operation

    Correct Answer
    A. Is granted the right to market a company's concepts
    Explanation
    A franchisee is granted the right to market a company's concepts. This means that the franchisee is given permission to use the company's brand, products, and business model to operate their own business. They have the opportunity to sell the company's products or services under the company's name and benefit from the established reputation and customer base. The franchisee is essentially a business partner of the company, operating independently but under the company's guidelines and support. This arrangement allows both parties to expand their business and reach a wider market.

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  • 24. 

    Is beginning inventory is $4,200.00, the ending inventory is $3,400.00, purchases are $5,000.00 and food sales are $39,000.00 then the contribution margin for food is:

    • 25,600

    • 33,200

    • 32,400

    • 33,500

    Correct Answer
    A. 33,200
    Explanation
    The contribution margin for food can be calculated by subtracting the cost of goods sold from the food sales. The cost of goods sold can be calculated by subtracting the ending inventory from the beginning inventory and adding the purchases. In this case, the cost of goods sold would be $4,200.00 - $3,400.00 + $5,000.00 = $6,800.00. Therefore, the contribution margin for food would be $39,000.00 - $6,800.00 = $32,200.00.

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  • 25. 

    The National Restaurant Association Industry Operations Report shows the area that takes the largest amount out of restaurant profits, no matter what the segment is:

    • Direct operating expenses

    • Salaries and wages

    • Taxes and depreciation

    • Food cost

    Correct Answer
    A. Salaries and wages
    Explanation
    Salaries and wages take the largest amount out of restaurant profits, regardless of the segment. This means that the money spent on paying employees is the biggest expense for restaurants, which can significantly impact their overall profitability. It includes the wages of both front-of-house staff, such as servers and hosts, and back-of-house staff, such as chefs and dishwashers. This expense is unavoidable as it is necessary to have a skilled and dedicated workforce to run a successful restaurant.

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  • 26. 

    Given the limited amount of management time available, profits might be increased more by focusing on the sales side of the profit equation rather than on the expense side.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Focusing on the sales side of the profit equation means putting more effort into increasing sales and revenue. This can be achieved through various strategies such as improving marketing and advertising, expanding the customer base, and increasing sales volume. By doing so, the company can generate more revenue and potentially increase profits. On the other hand, focusing on the expense side means reducing costs and expenses, which may have a limited impact on increasing profits. Therefore, it is more likely that profits can be increased more effectively by concentrating on the sales side rather than the expense side.

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  • 27. 

    The major market categories found in the restaurant industry include:

    • Free market, niche market, and refueling market.

    • Captive market, mass market, and status market

    • Economic market, social market and advertising market

    • Demographic market, psycho-social market and satisfaction market

    Correct Answer
    A. Captive market, mass market, and status market
    Explanation
    The major market categories found in the restaurant industry are captive market, mass market, and status market. A captive market refers to a specific group of customers who have limited choices and are forced to patronize a particular restaurant. A mass market includes a wide range of customers with diverse preferences and needs. A status market targets customers who are willing to pay a premium for a prestigious dining experience. These market categories help restaurants identify and cater to different customer segments and develop appropriate marketing strategies.

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  • 28. 

    Newspaper is the primary advertising medium for most table service restaurants

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because newspapers are a popular advertising medium for table service restaurants. Newspapers have a wide readership and can reach a large audience, making them an effective way for restaurants to promote their services. Additionally, newspapers often have dedicated sections for food and dining, making them a targeted platform for restaurants to showcase their menus and attract customers. Overall, newspapers provide a cost-effective means for table service restaurants to advertise their offerings and reach potential customers.

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  • 29. 

    The perpetual inventory method is best suited for controlling:

    • Frozen foods

    • Bulk storage goods

    • Smallwares and glasswares

    • Alcoholic beverages

    Correct Answer
    A. Alcoholic beverages
    Explanation
    The perpetual inventory method is best suited for controlling alcoholic beverages because it allows for real-time tracking and updating of inventory levels. Alcoholic beverages are often high-value items that require careful monitoring to prevent theft, spoilage, or overstocking. With the perpetual inventory method, businesses can easily track the movement of alcoholic beverages, record sales and purchases, and have accurate and up-to-date information on their inventory levels. This helps in maintaining adequate stock levels, reducing the risk of stockouts or excess inventory, and ensuring efficient management of alcoholic beverages.

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  • 30. 

    From the following, the best example of a quick-casual restaurant would be:

    • Panera

    • Wendy's

    • P.F. Chang's

    • Domino's Pizza

    Correct Answer
    A. Panera
    Explanation
    Panera is the best example of a quick-casual restaurant because it offers a fast and convenient dining experience while also providing higher quality food compared to traditional fast-food chains. Panera's menu includes a variety of freshly baked goods, soups, salads, and sandwiches, allowing customers to have a quick meal without compromising on taste or nutrition. The restaurant also offers a comfortable and inviting atmosphere, with options for both dine-in and takeout. Overall, Panera strikes a balance between speed and quality, making it a prime example of a quick-casual restaurant.

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  • 31. 

    The company's assets, liabilities and equity are recorded on the:

    • Income statement

    • Balance sheet

    • Cash flow sheet

    • EBITDA statement

    Correct Answer
    A. Balance sheet
    Explanation
    The balance sheet is a financial statement that records a company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of the company's financial position and helps stakeholders understand its financial health. The income statement, on the other hand, shows the company's revenue, expenses, and net income over a specific period. The cash flow statement focuses on the company's cash inflows and outflows. The EBITDA statement shows the company's earnings before interest, taxes, depreciation, and amortization. Therefore, the balance sheet is the correct answer as it specifically records the company's assets, liabilities, and equity.

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  • 32. 

    In menu engineering a plow horse is an item with:

    • Low sales and low contribution margin

    • Low sales and high contribution margin

    • High sales and low contribution margin

    • High sales and high contribution margin

    Correct Answer
    A. High sales and low contribution margin
    Explanation
    A plow horse in menu engineering refers to an item that has high sales but a low contribution margin. This means that the item is popular and sells well, but it does not generate a high profit margin for the business.

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  • 33. 

    Atmosphere is a factor most important in which of the following:

    • Quick-casual restaurants

    • Quick-service restaurants

    • Fine-casual restaurants

    • Family dining restaurants

    Correct Answer
    A. Fine-casual restaurants
    Explanation
    Fine-casual restaurants prioritize creating a specific atmosphere for their customers. The atmosphere plays a crucial role in enhancing the overall dining experience and creating a unique ambiance that aligns with the restaurant's concept and target audience. This includes factors such as the interior design, lighting, music, and overall ambiance. By focusing on the atmosphere, fine-casual restaurants aim to provide a more upscale and refined dining experience compared to quick-casual or quick-service restaurants, which may prioritize speed and convenience over ambiance. Family dining restaurants, on the other hand, may prioritize a more casual and family-friendly atmosphere.

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  • 34. 

    Which of the following is one of the trends predicted for the foodservice industry?

    • Foodservice operators will seek partnerships with distributors, manufactures and brokers.

    • Noncommercial operations will narrow the focus of their services to serve a smaller variety of customers

    • Distributors will offer fewer pre-prepared food items to support the "make it from scratch" focus in operations

    • Brokers will increase their focus on individual ingredients and decrease their focus on meal solution concepts.

    Correct Answer
    A. Foodservice operators will seek partnerships with distributors, manufactures and brokers.
    Explanation
    Foodservice operators seeking partnerships with distributors, manufacturers, and brokers is predicted to be one of the trends in the foodservice industry. This indicates that foodservice operators are recognizing the importance of collaborating with these entities to enhance their operations and meet the demands of their customers. By partnering with distributors, manufacturers, and brokers, foodservice operators can ensure a steady supply of high-quality ingredients and products, as well as access to new and innovative solutions. This trend reflects the industry's focus on building strategic alliances to improve efficiency, increase profitability, and offer a wider range of options to customers.

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  • 35. 

    Restaurants can increase sales by:

    • Reducing labor costs

    • Increasing productivity

    • Reducing food costs

    • Introducing a new concept

    Correct Answer
    A. Introducing a new concept
    Explanation
    Introducing a new concept can help restaurants increase sales by attracting new customers and creating a buzz around their establishment. By offering something unique and different, restaurants can stand out from their competitors and generate excitement among potential diners. This can lead to increased foot traffic, repeat business, and positive word-of-mouth recommendations. Additionally, a new concept can help restaurants tap into new markets and cater to different customer preferences, expanding their customer base and ultimately boosting sales.

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  • 36. 

    According to the National Restaurant Association survey of members and chefs, the number one "what's hot" food is trend is:

    • Food trucks and street food

    • Children's nutrition

    • Low-carb items

    • Locally sourced meats and seafood

    Correct Answer
    A. Locally sourced meats and seafood
    Explanation
    The correct answer is locally sourced meats and seafood. This is based on the National Restaurant Association survey of members and chefs, which found that this trend is the number one "what's hot" food. This means that restaurants and chefs are increasingly prioritizing and sourcing their meats and seafood from local suppliers or nearby farms and fisheries. This trend is likely driven by the growing consumer demand for sustainable and ethically sourced food, as well as the desire to support local businesses and reduce carbon footprint.

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  • 37. 

    Which of the following would be considered to be a high quality utility foodservice:

    • Vending machine

    • Casual dining restaurant

    • Family restaurant

    • Luxury restaurant

    Correct Answer
    A. Vending machine
    Explanation
    A vending machine would be considered a high quality utility foodservice because it provides quick and convenient access to food and beverages. Vending machines are typically stocked with a variety of options and can be found in various locations, making them easily accessible to a wide range of customers. While the other options listed may also provide high quality food, they do not offer the same level of convenience and accessibility as a vending machine.

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  • 38. 

    Controllable expense in the income statement include: 

    • Depreciation, rent and intrest

    • Administration and general, marketing and employee benefits

    • Taes, energy and utilities and repair and maintenance

    • Salaries and wages, rent and depreciation

    Correct Answer
    A. Administration and general, marketing and employee benefits
    Explanation
    The correct answer is administration and general, marketing and employee benefits. These expenses are considered controllable because they can be managed and controlled by the management of the company. They include expenses related to the administration and management of the company, such as salaries of administrative staff, office supplies, and general operating expenses. Marketing expenses include advertising and promotional costs, while employee benefits include wages, salaries, and other benefits provided to the employees. These expenses can be adjusted and managed by the company to control costs and improve profitability.

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  • 39. 

    Important Considerations when developing a lunch menu include:

    • Complexity

    • Variety of items

    • Larger portion sizes

    • Both A and B

    Correct Answer
    A. Variety of items
    Explanation
    When developing a lunch menu, it is important to consider the variety of items available. This ensures that there are options to cater to different preferences and dietary restrictions. Offering a diverse selection of items also helps to keep the menu interesting and appealing to customers. Complexity and larger portion sizes are not necessarily crucial considerations in developing a lunch menu, making them incorrect options.

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  • 40. 

    Current trends in the foodservice industry include all of the following except: 

    • Consumers are more educated than in the past

    • The "Baby Boomers" will be the biggest spending group in the current population

    • The majority of people under the age of 19 do not meet the Federal guidelines for the healthy diets

    • The population of those people over the age of 80 is expected to decrease by 50% before 2020.

    Correct Answer
    A. The population of those people over the age of 80 is expected to decrease by 50% before 2020.
    Explanation
    The given answer is "The population of those people over the age of 80 is expected to decrease by 50% before 2020." This answer does not align with the current trends in the foodservice industry. The other options mention trends such as consumers being more educated, "Baby Boomers" being the biggest spending group, and the majority of people under 19 not meeting healthy diet guidelines. These options indicate the current trends in the industry, while the given answer suggests a population decrease in a specific age group, which is not directly related to the foodservice industry trends.

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  • 41. 

    Purchasing specifications should not include the amount of the product you plan to purchase on a monthly basis.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Purchasing specifications should focus on the quality, features, and requirements of the product rather than specifying the exact quantity to be purchased on a monthly basis. The amount of product needed may vary depending on demand, market conditions, and other factors. By not including the specific quantity, it allows for flexibility and adjustment in purchasing decisions based on changing circumstances.

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  • 42. 

    Median pre-tax profits as a percentage of sales are highest for which restaurant segment:

    • Full service restaurants with checks average under 15 dollars

    • Full service restaurants with check averages between 15-25 dollars

    • Limited service restaurants

    • Full service restaurants with check averages of 25 dollars or more

    Correct Answer
    A. Limited service restaurants
    Explanation
    Limited service restaurants typically have lower operating costs compared to full-service restaurants, as they do not offer table service or employ as many staff members. This allows them to have higher profit margins as a percentage of sales. Therefore, the median pre-tax profits as a percentage of sales are highest for limited service restaurants.

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  • 43. 

    In the article " Why Restaurants Fail," the author rejects the fact that 90% of all new restaurants fail in the first year of business. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the correct answer "True" is that the author of the article rejects the commonly held belief that 90% of all new restaurants fail in the first year of business. This suggests that the author disagrees with this statement and believes it to be false. Therefore, the correct answer is "True" because the author rejects the fact that 90% of new restaurants fail in the first year.

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  • 44. 

    Market penetration is a menu pricing method that would most likely be suited for:

    • Pizza delivery restaurants

    • Family dining restaurants

    • Fine dining restaurants

    • Cafeterias and buffets

    Correct Answer
    A. Pizza delivery restaurants
    Explanation
    Market penetration is a menu pricing method that would most likely be suited for pizza delivery restaurants because it involves setting low prices to attract a large number of customers and gain a significant market share. Pizza delivery restaurants typically operate in a highly competitive market where price sensitivity is high, and customers are looking for affordable options. By offering lower prices, pizza delivery restaurants can attract more customers, increase their sales volume, and potentially dominate the market. This pricing strategy aligns with the business model and target market of pizza delivery restaurants.

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  • 45. 

    When considering radio advertising, market selectivity is_________ and geographic selectivity is _________.

    • Narrow; low

    • Broad; high

    • Broad; low

    • Narrow; high

    Correct Answer
    A. Broad; high
    Explanation
    Market selectivity refers to the ability of radio advertising to target specific market segments or demographics. A broad market selectivity means that radio advertising can reach a wide range of audiences, allowing advertisers to target a larger pool of potential customers. On the other hand, geographic selectivity refers to the ability of radio advertising to target specific geographic areas. A high geographic selectivity means that radio advertising can be tailored to reach specific locations or regions, allowing advertisers to target their message to a specific audience in a particular area.

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  • 46. 

    In menu engineering a dog is an item with:

    • High sales and low contribution margin

    • Low sales and high contribution margin

    • Low Sales and low contribution margin

    • High sales and high contribution margin

    Correct Answer
    A. Low Sales and low contribution margin
    Explanation
    A "dog" in menu engineering refers to an item that has both low sales and a low contribution margin. This means that the item is not popular among customers and does not generate much profit for the business. These items are typically not worth keeping on the menu as they do not contribute significantly to the overall revenue.

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  • 47. 

    The________ is the blueprint developed to categorize restaurant revenues and expenses and for laying out the statement of income.

    • National Restaurant Association Restaurant Industry Operations Report

    • Laventhol and Horwath System for Restaurants

    • Uniform System of accounts for Restaurants

    • Deloitte& Touche Statement Analysis for Restaurants

    Correct Answer
    A. Uniform System of accounts for Restaurants
    Explanation
    The Uniform System of accounts for Restaurants is a blueprint that is developed to categorize restaurant revenues and expenses and for laying out the statement of income. It provides a standardized framework for financial reporting in the restaurant industry, ensuring consistency and comparability across different establishments. This system helps restaurant owners and managers track and analyze their financial performance, make informed business decisions, and communicate financial information effectively.

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  • 48. 

    Managers can be proactive or reactive in the face of failing sales. Examples of reactive management include

    • Readin newspapers and magazines to keep up with current trends

    • Attending industry forums where trends are discussed

    • Both A and B

    • Neither A or B

    Correct Answer
    A. Neither A or B
    Explanation
    The correct answer is "Neither A or B" because both reading newspapers and magazines to keep up with current trends and attending industry forums where trends are discussed are examples of proactive management, not reactive management. Reactive management would involve responding to failing sales after they have already occurred, rather than taking proactive steps to prevent or address the issue beforehand.

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  • 49. 

    Inventory turnover rate is:

    • Equal to the cost of goods sold divided by the average inventory for a period

    • Based on the total inventory for the period and the average of the standard and actual food cost of goods sold.

    • Used to determine the number of times revenue is converted into inventory

    • All of the above

    Correct Answer
    A. Equal to the cost of goods sold divided by the average inventory for a period
    Explanation
    The inventory turnover rate is a financial ratio that measures how quickly a company is able to sell its inventory and replace it with new stock. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. This ratio helps businesses assess their inventory management efficiency and identify potential issues such as overstocking or understocking. By comparing this ratio to industry benchmarks, companies can also evaluate their performance relative to competitors. Therefore, the correct answer is "Equal to the cost of goods sold divided by the average inventory for a period."

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 20, 2013
    Quiz Created by
    Kingwasabi_
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