HMGT 401 - EXAM #1 QUESTIONS AND
ACCURATE ANSWERS
How much is the food industry forecasted to make in 2015? - ANSWER $709 billion
How many restaurant locations in the US? - ANSWER Over 1 million
What are 2 kinds of restaurant metrics? - ANSWER Table turnover & average check
How do you calculate the average check? - ANSWER Sales divided by the # of
customers
What are characteristics that differentiate restaurants? - ANSWER Menu/type of food,
price, level of service
What are the two basic markets served by restaurants? - ANSWER The dining market
and the eating market
What is the function of the dining market? - ANSWER It serves our social needs
What is the function of the eating market? - ANSWER It serves our biological needs
What is the scope of food service? - ANSWER Food service encompasses all sorts of
public and private locations that provide food for sale
What percentage do Americans spend on food away from home? - ANSWER They spend
48% of their food dollar away from home
, How often do Americans eat out? - ANSWER On average, nearly one out of every 4
meals and snacks
What is on-site food service (aka institutional or noncommercial food service)? -
ANSWER It is composed of contractors and caterers and those institutions that operate
their own food service (self-ops)
Where do contractors and caterers most often operate out of? - ANSWER Manufacturing
plants and office buildings, health care facilities, sports arenas, schools, and colleges
What is the off-premise sales sector composed of? - ANSWER Takeout, drive-through,
and delivery
Is the fine dining sector increasing? - ANSWER No, it is decreasing. Casual dining is
increasing.
Why do people dine out? - ANSWER To escape from boredom, to socialize, to avoid
drudgery, to be waited on, to have foods different from those served at home, and for
convenience
What types of restaurants are part of the dining market? - ANSWER Fine-dining
restaurants and casual upscale dining (aka casual fine dining)
What is an average check at a fine-dining restaurant per person? - ANSWER $40 or
more
What does a fine dining restaurant need to thrive? - ANSWER A large market, skilled
workers, and devoted management
Where are fine dining restaurants usually located? - ANSWER Most establishments are
located in or near large population centers or in major tourism areas where there is a
sufficiently large number of people with high income
ACCURATE ANSWERS
How much is the food industry forecasted to make in 2015? - ANSWER $709 billion
How many restaurant locations in the US? - ANSWER Over 1 million
What are 2 kinds of restaurant metrics? - ANSWER Table turnover & average check
How do you calculate the average check? - ANSWER Sales divided by the # of
customers
What are characteristics that differentiate restaurants? - ANSWER Menu/type of food,
price, level of service
What are the two basic markets served by restaurants? - ANSWER The dining market
and the eating market
What is the function of the dining market? - ANSWER It serves our social needs
What is the function of the eating market? - ANSWER It serves our biological needs
What is the scope of food service? - ANSWER Food service encompasses all sorts of
public and private locations that provide food for sale
What percentage do Americans spend on food away from home? - ANSWER They spend
48% of their food dollar away from home
, How often do Americans eat out? - ANSWER On average, nearly one out of every 4
meals and snacks
What is on-site food service (aka institutional or noncommercial food service)? -
ANSWER It is composed of contractors and caterers and those institutions that operate
their own food service (self-ops)
Where do contractors and caterers most often operate out of? - ANSWER Manufacturing
plants and office buildings, health care facilities, sports arenas, schools, and colleges
What is the off-premise sales sector composed of? - ANSWER Takeout, drive-through,
and delivery
Is the fine dining sector increasing? - ANSWER No, it is decreasing. Casual dining is
increasing.
Why do people dine out? - ANSWER To escape from boredom, to socialize, to avoid
drudgery, to be waited on, to have foods different from those served at home, and for
convenience
What types of restaurants are part of the dining market? - ANSWER Fine-dining
restaurants and casual upscale dining (aka casual fine dining)
What is an average check at a fine-dining restaurant per person? - ANSWER $40 or
more
What does a fine dining restaurant need to thrive? - ANSWER A large market, skilled
workers, and devoted management
Where are fine dining restaurants usually located? - ANSWER Most establishments are
located in or near large population centers or in major tourism areas where there is a
sufficiently large number of people with high income
