Business Ops Final Flashcards
What type of restaurant involved the least financial risk?
Franchising and managing
What is thought to be the first restaurant in America?
Delmonico’s
How much does a 100-seat restaurant fully equipped cost per seat?
$6,000-$10,000
What does centralization do for order taking, food preparation, and accounting?
Decreases costs
What type of restaurant requires the food to be paid for prior to service?
Quick service
How many years does it take for a restaurant to become profitable?
1-2 years
What are three characteristics of a good business plan?
- Improves chances of operational success
- A written document to present to potential investors to obtain financing
- Assists in getting financing
What are the three elements of a mission statement?
- States what a business has to offer
- Goals, strategies and objectives
- States philosophies and values the business and employees will follow
Define fixed costs and give an example.
Cost unaffected by sales or volume. Rent, mortgage, taxes, insurance
Define prime costs and give an example.
Costs not to exceed 55-60% of sales. Labor, beverage, food
The matrix of ideas that constitutes what would be perceived as there restaurants image is called what?
Concept
40-50% of all customers arrive this way.
In pairs
What does D&B stand for?
Different and better
What is the difference between sales price and cost of the item?
Contribution margin
What insures consistency for a restaurant?
Standardized recipes
The matrix of ideas is devised to interest a certain group of people called a what?
Target market
List 3 factors that impact the price to value perception of the guest.
- Quality of product
- Consistency of product
- Consistent speed of service
List 4 factors in menu planning/creation.
- Operational limitations
- Needs/desires
- Availability of ingredients
- Standard recipes
Name 4 types of menues.
Lunch
Dinner
Degustation
Grand
The sum of the opening inventory+purchases-closing inventory equals what?
The cost of food consumed
Define par stocks
Reasonable amount of product you should always have on hand.
What is inventory and what does it represent to a food service establishment?
Product on hand, which is a storage of money that needs to be sold.
Define AP
As purchased
Define EP
Edible portion
What does kitchen planning involve?
Allocation of needs and equipment to keep flow of traffic to a minimum. Time, wasted product, accidents
What are 5 steps of product flow?
Receiving Storing Prep Cooking Plating
What 3 things have to be taken into account in determining total equipment cost?
- Original purchase price
- Energy cost to operate
- Replacement of parts including maintenance
What are 3 advantages of a FOH handheld system?
- Elimination of arithmetic errors
- Reduced labor costs
- Improved guest check control
What is the outcome of great customer service?
Customer loyalty
List the 7 steps of the complaint handling strategy.
- Diplomatic
- Listen
- Empathize
- Control of voice
- Get facts
- Remain clam
- Take care of problem immediately
How many months working capital should be available at all times?
2 months
What is FF&E?
Furnishings, fixtures and equipment
What are the 4 steps in the marketing planning sequence?
- Marketing assessment
- Set goals
- Marketing matrix
- Evaluate and monitor
What are the 3 most common marketing segmentation groups?
Demographic
Geographic
Behavioral
What are the 3 pricing strategies? Define each.
Cost base- cost of all ingredients of an item and multiply by 3 to get 33%
Competitive- compare price of competition and set prices accordingly
Contribution- price set at a reasonable amount that contributes to gross but not net income
Define current assets and give 2 examples.
Maturity of 1 year or less. Cash, inventory
What is triple net lease?
A lease in which the leasee is responsible for all costs
What does a balance sheet have on it?
All assets and liabilities
Define fixed assets and give 2 examples.
Maturity of 1 year or more. Building, equipment
What is the formula to calculate food costs%?
Costs\ sales
List the 5 steps of the control process.
- Evaluate
- Actual productivity analyzed
- Check the variance between standards and productivity and evaluate
- Take corrective action
- Adjust if needed
Profit is typically what percent of revenue?
3-9%
What is USAR?
Uniform System of Accounts in Restaurants
What is the simplest measure of employee productivity?
Productivity analysis
Sales by employee/set period of time
What are the 3 main types of ownership?
Sole proprieter
Partnership
Corporation
Define controllable expenses.
Expenses in the short run that can be adjusted. Payroll, utilities
Money before the depreciation allowance is known as what?
Cash flow
List the 5 steps of food production.
- Receiving
- Storage
- Food preparation
- Preparation procedures
- Standardized recipes
What does HACCP stand for?
Hazard Analysis of Critical Control Points
Define goal
Target
Define strategy
A plan of how you are going to get to your goal
What are the 3 key points needed for effective performance management?
- What is an employee to do
- How well are they to do it
- To what extent
What is the most commonly used productivity measure and its formula?
Labor cost revenue
Labor cost/revenue
What is the purest measure of productivity and its formula?
Guests served labor hours
Guests served/labor hours
List the 3 main categories of employee compensation?
Direct
Indirect
Deferred
List the two productivity measures that are unaffected by menu price and the formulas.
1.Guests served labor hours
Guests served/labor hours
2. Labor $ per guest
Labor $/ # of guests
What 4 items are required to ensure quality and determine the number of staff to effectively operate?
- Menu
- Food prep methods
- Desired service level
- Quality of employee training
