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Flashcards in F&B - Chapter 3 Deck (25):
1

À LA CARTE MENU

A menu that offers and prices each food item on an individual basis. Guests may select from a variety of different salads, entrèes, vegetables, desserts and beverages - all individually priced.

2

BASE SELLING PRICE

The result of pricing formulas - not necessarily the final selling price. A base selling price is considered a starting point from which other factors must be assessed and the final selling price is adjusted accordingly.

3

CONTRIBUTION MARGIN

Revenue minus food costs for an entire property, operating department, or menu item. It represents the amount of revenue that is available for all non-food costs and profits. The contribution margin of a menu item is determined by subtracting the item’s food cost from its selling price.

4

CONTRIBUTION MARGIN PRICING METHOD

An objective menu pricing approach that determines the base selling price for a menu item by adding the average contribution margin required per guest to the item’s standard food cost.

5

CYCLICAL MENU

A menu that changes daily for a certain number of days, then repeats the sequence.

6

DIE-CUT MENUS

Menus cut into non-traditional shapes

7

ELASTICITY OF DEMAND

A term used to describe how the quantity demanded responds to changes in price. If a price change of a certain percentage creates a larger percentage change in the quantity demanded, the demand is elastic, and the item is considered to be price-sensitive. If the percentage change in the quantity demanded is less than the percentage change in price, the demand is inelastic.

8

FIXED COST

Expenses, such as for rent or insurance, that do not vary with the number of guests served.

9

FIXED MENU

A menu that does not change from day to day.

10

INGREDIENTS MARK-UP PRICING METHOD

An objective menu pricing approach that considers all food costs. A base selling price is established by multiplying the ingredients’ costs by a multiplier, based on the desired food cost percentage.

11

LACTO-VEGETARIAN

An individual who doesn’t eat meat but eats dairy products (but no eggs or fish) in addition to vegetables, fruits, grains and nuts

12

LACTO-OVO-VEGETARIAN

An individual does not eat meat but eats eggs and dairy products (but no fish)

13

LAMINATE MENUS

Menus covered with a plastic or other film that makes them easy to clean

14

MARK-UP WITH ACCOMPANIMENT COSTS PRICING METHODS

An objective menu pricing approach that establishes a base selling price by determining ingredient costs based only upon the entrèe and then adding a standard accompaniment or “plate” cost to this amount before multiplying by a multiplier.

15

MENU ENGINEERING

A manual or computerized method of menu analysis and item pricing that considers both the profitability and popularity of competing menu items.

16

PESCO-VEGETARIAN

An individual who doesn’t eat meat but eats dairy products, eggs and fish

17

PRIME COSTS

The most significant costs in a food service operation: product costs (food and beverage) and labor costs

18

PRIME-INGREDIENT MARK-UP PRICING METHOD

An objective menu pricing method in which the cost of the entrèe, rather than the total cost of all ingredients, is multiplied by a mark-up value

19

RATIO PRICING METHOD

An objective menu pricing method that determines the relationship between food costs and all non-food costs plus profit requirements (contribution margin) and uses this ratio to develop base selling prices for menu items.

20

SIGNATURE ENTRÉE

A menu item that guests perceive as special and closely associated with the restaurant promoting it. Signature menu items help build repeat business and guest loyalty.

21

SIMPLE PRIME COSTS PRICING METHOD

An objective menu pricing approach that determines a menu item’s base selling price by dividing the prime costs per guests by the desired prime costs percentage

22

SPECIFIC PRIME COSTS PRICING METHOD

An objective menu pricing approach in which multipliers for menu items are determined in such a way that the base selling prices for the items cover their fair share of labor costs

23

STANDARD RECIPE

A formula for producing a food or beverage item. The formula provides a summary of ingredients, the required quantity of each, specific preparation procedures, portion size and portioning equipment, garnish information, and any other info necessary to prepare the item.

24

TABLE D’HÔTE MENU

A menu that offers a complete meal with several courses for one price. Also called a fixed price menu.

25

VEGAN

A strict vegetarian who eats no animal products whatsoever