Flashcards in F&B - Chapter 3 Deck (25):
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.
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.
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.
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.
A menu that changes daily for a certain number of days, then repeats the sequence.
Menus cut into non-traditional shapes
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.
Expenses, such as for rent or insurance, that do not vary with the number of guests served.
A menu that does not change from day to day.
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.
An individual who doesn’t eat meat but eats dairy products (but no eggs or fish) in addition to vegetables, fruits, grains and nuts
An individual does not eat meat but eats eggs and dairy products (but no fish)
Menus covered with a plastic or other film that makes them easy to clean
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.
A manual or computerized method of menu analysis and item pricing that considers both the profitability and popularity of competing menu items.
An individual who doesn’t eat meat but eats dairy products, eggs and fish
The most significant costs in a food service operation: product costs (food and beverage) and labor costs
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
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.
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.
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
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
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.
TABLE D’HÔTE MENU
A menu that offers a complete meal with several courses for one price. Also called a fixed price menu.