Menu Engineering Chaper 11 Flashcards
(22 cards)
What is the primary goal of cost-control procedures?
To maintain excess cost and cost percentage from developing within predetermined bounds.
What determines how much profit there will be in foodservice?
The contribution margin of menu items and the number of customers attracted.
True or False: Managers prefer to sell items with lower contribution margins.
False
Menu engineering
Menu engineering is the process used by managers to plan, Price,replace , or reposition menu items to maximize profit.
What does menu engineering monitor?
The effectiveness of efforts to maximize gross revenue in a menu.
What is the primary goal of menu engineering?
Maximize a restaurant’s profitability by encouraging customers to buy desired items and discouraging unwanted purchases.
What does menu engineering help managers evaluate?
Pricing, retention, replacement, or repositioning of menu items.
What is the formula for calculating Menu Mix Percentage?
No. sold of a specific menu item / Total no. of all items sold
What does the Contribution Margin of a menu item represent?
Selling Price – Food Costs
How is Contribution Margin used in menu engineering?
It indicates how much money contributes to paying labor, operating expenses, and profit.
What are the four classifications of menu items in the BCG Matrix?
- Stars
- Plow Horse
- Puzzles
- Dogs
What characterizes a ‘Star’ menu item?
Extremely popular and have a high contribution margin.
What is a ‘Plow Horse’ menu item?
High in popularity but low in contribution margin.
Define a ‘Puzzle’ menu item.
Generally low in popularity and high in contribution margin.
What defines a ‘Dog’ menu item?
Low in popularity and low in contribution margin.
What changes should be made to ‘Dogs’ according to menu engineering?
Remove them from the menu.
What is the purpose of Menu Engineering Software?
Menu Engineering Software analyses menu data to help managers optimise menu items and pricing.
What is the ideal strategy for ‘Puzzles’ according to menu engineering?
Reposition them on the menu.
What is the significance of the BCG Matrix?
Helps analyze business units and allocate resources.
What is the contribution margin of a patty priced at $100 with a food cost of $20?
$80.00
What should be done with ‘Stars’ according to menu engineering strategies?
Retain them.
