F&B - Chapter 3

Question 1

À LA CARTE MENU

Answer 1

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.

Question 2

BASE SELLING PRICE

Answer 2

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.

Question 3

CONTRIBUTION MARGIN

Answer 3

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.

Question 4

CONTRIBUTION MARGIN PRICING METHOD

Answer 4

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.

Question 5

CYCLICAL MENU

Answer 5

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

Question 6

DIE-CUT MENUS

Answer 6

Menus cut into non-traditional shapes

Question 7

ELASTICITY OF DEMAND

Answer 7

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.

Question 8

FIXED COST

Answer 8

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

Question 9

FIXED MENU

Answer 9

A menu that does not change from day to day.

Question 10

INGREDIENTS MARK-UP PRICING METHOD

Answer 10

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.

Question 11

LACTO-VEGETARIAN

Answer 11

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

Question 12

LACTO-OVO-VEGETARIAN

Answer 12

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

Question 13

LAMINATE MENUS

Answer 13

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

Question 14

MARK-UP WITH ACCOMPANIMENT COSTS PRICING METHODS

Answer 14

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.

Question 15

MENU ENGINEERING

Answer 15

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

Question 16

PESCO-VEGETARIAN

Answer 16

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

Question 17

PRIME COSTS

Answer 17

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

Question 18

PRIME-INGREDIENT MARK-UP PRICING METHOD

Answer 18

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

Question 19

RATIO PRICING METHOD

Answer 19

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.

Question 20

SIGNATURE ENTRÉE

Answer 20

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.

Question 21

SIMPLE PRIME COSTS PRICING METHOD

Answer 21

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

Question 22

SPECIFIC PRIME COSTS PRICING METHOD

Answer 22

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

Question 23

STANDARD RECIPE

Answer 23

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.

Question 24

TABLE D’HÔTE MENU

Answer 24

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

Question 25

VEGAN

Answer 25

A strict vegetarian who eats no animal products whatsoever