CHAPTER 5 Flashcards
When making purchasing decisions whether to make a product from scratch or to purchase it premade.
make or buy analysis
Three major cost go into the production any edible product
ingredients, labor and energy
- Cost
- Price Sensitivity
- Pricing Policies
- Factors to consider
pricing products properly
is a menu item that produce both high contribution margin and high volume. These are the item that foodservice operators prefers to sell when they can
star
is a menu item that produces a comparatively low contribution , margin and accounts for relatively low volume. These are probably the least desirable item to have on the menu.
dog
is a menu item that produces a low contribution margin but accounts for relatively high volume. These items have broad appeal to customer, but contribution comparatively little profit per unit sold,
plow horse
a menu item that produces a high contribution margin but. accounts for comparatively low sales volume,
puzzle
- Layout and design
- Variety
- Item arrangement and location
- Descriptive language
- Kitchen personnel and equipment
the menu
- Up-selling
- Menu knowledge
- Costumer service
sales techniques