HMGT 401 - Exam #1 Questions With Complete Solutions
How do hosts and food service operators benefit each other in
the case of PODs? Correct Answers Food service enhances the
host's operation by providing additional service to its customers,
another revenue stream in the form of rent, and, ideally, keeping
employees, shoppers, or visitors on-site longer than they might
have been otherwise. The host's venue provides a profitable
location to the food service company.
How do restaurants increase sales? Correct Answers By selling
to more people or selling more to present customers (or both)
How do you calculate the average check? Correct Answers
Sales divided by the # of customers
How is a profit (in business) treated? Correct Answers Some is
paid out to the owner or shareholders as dividends (return on
their investment). Some of the profit is retained by the business
to provide funds for future growth (retained earnings).
How is service in a family restaurant? Correct Answers Not
elaborate - paper place mats, simple meals, and reduced courses.
Guests who visit expect to be waited on, but are opting for an
informal, simple, relatively inexpensive style of service.
How many restaurant locations in the US? Correct Answers
Over 1 million
How much is the food industry forecasted to make in 2015?
Correct Answers $709 billion
,How much of customer traffic is generated by QSRs? Correct
Answers Nearly three-quarters
How much of restaurant sales do QSRs account for? Correct
Answers Slightly less than half
How often do Americans eat out? Correct Answers On average,
nearly one out of every 4 meals and snacks
Is the fine dining sector increasing? Correct Answers No, it is
decreasing. Casual dining is increasing.
Is the hospitality industry growing? Correct Answers Yes
What are "eatertainment" restaurants? Correct Answers Casual
theme restaurants in which the diner's experience is centered on
the entertainment provided by the restaurants' stage-set-like
decor
What are 2 kinds of restaurant metrics? Correct Answers Table
turnover & average check
What are approaches to increasing profit? Correct Answers
Increasing sales, reducing costs, or both
What are benefits of the managers acting as a team? Correct
Answers They give direction to the unit, maintain standards
(quality and cost), and secure the best possible experience for
their guests
, What are capital costs? Correct Answers These are costs that
vary with the value of the fixed assets - usually land, building,
furniture, fixtures, and equipment
What are characteristics of casual restaurants? Correct Answers
Relaxed atmosphere and reasonably priced menus that appeal to
many demographics; Many are chains, offering franchising
opportunities; Often are specialty, ethnic, and "eatertainment"
What are characteristics of family restaurants? Correct Answers
Provide table service, yet typically offer self-service of some
form; Usually offer breakfast, lunch, and dinner; Offer a wider
selection than QSRs; The production staff is limited to one or
more short or more short order cooks; Almost everything is
prepared to order (sometimes from scratch, sometimes from
frozen)
What are characteristics that differentiate restaurants? Correct
Answers Menu/type of food, price, level of service
What are controllable expenses? Correct Answers Costs that
may be expected to vary to some degree and over which
operating management can exercise direct control
What are current trends of QSRs? Correct Answers Going more
"upscale", companies diversifying, introduction of healthy
items, expansion of menus, and nontraditional locations
What are employee benefits? Correct Answers They include
social security takes, workers' compensation insurance, and
pension payments
How do hosts and food service operators benefit each other in
the case of PODs? Correct Answers Food service enhances the
host's operation by providing additional service to its customers,
another revenue stream in the form of rent, and, ideally, keeping
employees, shoppers, or visitors on-site longer than they might
have been otherwise. The host's venue provides a profitable
location to the food service company.
How do restaurants increase sales? Correct Answers By selling
to more people or selling more to present customers (or both)
How do you calculate the average check? Correct Answers
Sales divided by the # of customers
How is a profit (in business) treated? Correct Answers Some is
paid out to the owner or shareholders as dividends (return on
their investment). Some of the profit is retained by the business
to provide funds for future growth (retained earnings).
How is service in a family restaurant? Correct Answers Not
elaborate - paper place mats, simple meals, and reduced courses.
Guests who visit expect to be waited on, but are opting for an
informal, simple, relatively inexpensive style of service.
How many restaurant locations in the US? Correct Answers
Over 1 million
How much is the food industry forecasted to make in 2015?
Correct Answers $709 billion
,How much of customer traffic is generated by QSRs? Correct
Answers Nearly three-quarters
How much of restaurant sales do QSRs account for? Correct
Answers Slightly less than half
How often do Americans eat out? Correct Answers On average,
nearly one out of every 4 meals and snacks
Is the fine dining sector increasing? Correct Answers No, it is
decreasing. Casual dining is increasing.
Is the hospitality industry growing? Correct Answers Yes
What are "eatertainment" restaurants? Correct Answers Casual
theme restaurants in which the diner's experience is centered on
the entertainment provided by the restaurants' stage-set-like
decor
What are 2 kinds of restaurant metrics? Correct Answers Table
turnover & average check
What are approaches to increasing profit? Correct Answers
Increasing sales, reducing costs, or both
What are benefits of the managers acting as a team? Correct
Answers They give direction to the unit, maintain standards
(quality and cost), and secure the best possible experience for
their guests
, What are capital costs? Correct Answers These are costs that
vary with the value of the fixed assets - usually land, building,
furniture, fixtures, and equipment
What are characteristics of casual restaurants? Correct Answers
Relaxed atmosphere and reasonably priced menus that appeal to
many demographics; Many are chains, offering franchising
opportunities; Often are specialty, ethnic, and "eatertainment"
What are characteristics of family restaurants? Correct Answers
Provide table service, yet typically offer self-service of some
form; Usually offer breakfast, lunch, and dinner; Offer a wider
selection than QSRs; The production staff is limited to one or
more short or more short order cooks; Almost everything is
prepared to order (sometimes from scratch, sometimes from
frozen)
What are characteristics that differentiate restaurants? Correct
Answers Menu/type of food, price, level of service
What are controllable expenses? Correct Answers Costs that
may be expected to vary to some degree and over which
operating management can exercise direct control
What are current trends of QSRs? Correct Answers Going more
"upscale", companies diversifying, introduction of healthy
items, expansion of menus, and nontraditional locations
What are employee benefits? Correct Answers They include
social security takes, workers' compensation insurance, and
pension payments
