Midterm Exams: EDF6224/ EDF 6224 (Latest 2024/
2025 Update STUDY BUNDLE PACKAGE WITH
SOLUTIONS) Supervision and Management Fluency |
Qs & As| Grade A| 100% Correct (Verified Answer)
Base Price Method - ANSWERallows the restaurant to assign a desired sale price to
menu items.
THREE OPTIONS:
1. Lower the price to gain market share
2. set price in line with competition
3. price the item higher
Boxing - ANSWERFocuses on an item or menu category to make the category stand
out
Branding - ANSWERrefers to building a name so that it is clearly identified in the
marketplace.
Competition Pricing - ANSWERsimply to compete with the other restaurants in the
marketplace.
Assumes that everything is equal between two restaurants.
Concept - ANSWERoverall identity and purpose
Customer Feedback - ANSWERhelps to improve product quality, which in turn
increases sales and produces higher profits.
Food Cost Objective - ANSWERA set goal of food cost percentage
Mark up Pricing - ANSWERMost widely used pricing method. Dividing raw food cost
by the desired food cost.
Menu Engineering - ANSWERThe proper placement of items on a menu that can
influence customers' purchasing decisions. Placing certain items in high visibility
locations.
Price/Value Perception - ANSWERcustomers believe that they are receiving value for
the price they are paying.
Profit Contribution - ANSWERThe actual profit in dollar terms that each item
contributes to the gross profits of the business and is used to pay for the fixed costs
of the business.
Signature Items - ANSWERItems specific to a particular establishment
, Target Market - ANSWERThe type of customer the restaurant is attempting to reach
and entice to frequent the establishment. "A specific group of people, grouped
together by age, income, gender, geographical location or any other defining manner
in which an individual or group of individuals make purchasing decisions."
Truth in Menu - ANSWERbeing honest in the menu description
Volatility of Cost - ANSWERThe potential change in a market that might affect the
cost of a menu item.
Five Factors of Menu Pricing Structure - ANSWER1. Concept
2. Target Market
3. Labor Intensity or producing the product
4. Volatility of Raw Cost
5. Competition
Three Pricing Methods - ANSWER1. Mark Up Pricing
2. Base Price Method
3. Competition Pricing
Check Average - ANSWERRevenue/Number of Customers
(the check average for each profit center should be kept separately to help make
more informed decisions
Sales per Square Foot - ANSWERSales/Square Feet
(Determines space utilization)
Seat Turnover - ANSWERNumber of Customers/Number of Seats
Inventory Turnover - ANSWERCost of inventory/Value of inventory
Recipe Conversion Factor - ANSWERthe number that is used to multiply each
ingredient amount in order to increase or decrease the recipe yield
Labor Cost - ANSWERKitchen Labor Dollars/Food Sales
Cost of Goods Sold (COGS) - ANSWERthe restaurant's cost for the food and beverage
inventories purchased to generate the sales.
Cost/Sales Generated in a specific category
{(Beginning Inventory ($Value) + Purchases)-Ending Inventory ($Value)} / Sales = % of
Cost (FOOD COST)
Gross Profit - ANSWERRevenue - COGS
Labor - ANSWERincludes direct management and hourly payroll expenses, but does
not include associated costs such as benefits
2025 Update STUDY BUNDLE PACKAGE WITH
SOLUTIONS) Supervision and Management Fluency |
Qs & As| Grade A| 100% Correct (Verified Answer)
Base Price Method - ANSWERallows the restaurant to assign a desired sale price to
menu items.
THREE OPTIONS:
1. Lower the price to gain market share
2. set price in line with competition
3. price the item higher
Boxing - ANSWERFocuses on an item or menu category to make the category stand
out
Branding - ANSWERrefers to building a name so that it is clearly identified in the
marketplace.
Competition Pricing - ANSWERsimply to compete with the other restaurants in the
marketplace.
Assumes that everything is equal between two restaurants.
Concept - ANSWERoverall identity and purpose
Customer Feedback - ANSWERhelps to improve product quality, which in turn
increases sales and produces higher profits.
Food Cost Objective - ANSWERA set goal of food cost percentage
Mark up Pricing - ANSWERMost widely used pricing method. Dividing raw food cost
by the desired food cost.
Menu Engineering - ANSWERThe proper placement of items on a menu that can
influence customers' purchasing decisions. Placing certain items in high visibility
locations.
Price/Value Perception - ANSWERcustomers believe that they are receiving value for
the price they are paying.
Profit Contribution - ANSWERThe actual profit in dollar terms that each item
contributes to the gross profits of the business and is used to pay for the fixed costs
of the business.
Signature Items - ANSWERItems specific to a particular establishment
, Target Market - ANSWERThe type of customer the restaurant is attempting to reach
and entice to frequent the establishment. "A specific group of people, grouped
together by age, income, gender, geographical location or any other defining manner
in which an individual or group of individuals make purchasing decisions."
Truth in Menu - ANSWERbeing honest in the menu description
Volatility of Cost - ANSWERThe potential change in a market that might affect the
cost of a menu item.
Five Factors of Menu Pricing Structure - ANSWER1. Concept
2. Target Market
3. Labor Intensity or producing the product
4. Volatility of Raw Cost
5. Competition
Three Pricing Methods - ANSWER1. Mark Up Pricing
2. Base Price Method
3. Competition Pricing
Check Average - ANSWERRevenue/Number of Customers
(the check average for each profit center should be kept separately to help make
more informed decisions
Sales per Square Foot - ANSWERSales/Square Feet
(Determines space utilization)
Seat Turnover - ANSWERNumber of Customers/Number of Seats
Inventory Turnover - ANSWERCost of inventory/Value of inventory
Recipe Conversion Factor - ANSWERthe number that is used to multiply each
ingredient amount in order to increase or decrease the recipe yield
Labor Cost - ANSWERKitchen Labor Dollars/Food Sales
Cost of Goods Sold (COGS) - ANSWERthe restaurant's cost for the food and beverage
inventories purchased to generate the sales.
Cost/Sales Generated in a specific category
{(Beginning Inventory ($Value) + Purchases)-Ending Inventory ($Value)} / Sales = % of
Cost (FOOD COST)
Gross Profit - ANSWERRevenue - COGS
Labor - ANSWERincludes direct management and hourly payroll expenses, but does
not include associated costs such as benefits
