Deck 1: Introduction

Question 1

Why can cost- cutting be detrimental?

Answer 1

When sales drop managers are often tempted to cut costs to compensate for reduced sales. Advertising may be reduced; employee uniforms are not laundered as frequently; less expensive cuts of meat replace menu staples. As a result, the customers who remain become disenchanted with the operation and leave. The focus often is on cutting costs when it should be on increasing sales.

Question 2

The greatest recent growth for contractors has been in primary- and secondary- school markets because they have:

A) a great need for healthy food.
B) young consumers who can be educated to have certain tastes.
C) long resisted outsourcing their meal services.

Answer 2

C

Question 3

In the early stages of a new operation, the restaurant goes through an introductory stage in which the is introduced into the marketplace.

Answer 3

concept

Question 4

In recent years sandwich chains have responded to customer demand for healthier items by doing what?

A) Offering gourmet and health- oriented choices
B) Re- decorating in a more "natural" look to increase traffic
C) Both A and B

Question 5

Daily changes can be what?

A) Thorough or inventive
B) Announced or pre- planned
C) Cyclical or complete

Question 6

An advantage of à la carte menus is their perception of being:

A) easier to order.
B) more elite.
C) cheaper.

Question 7

By increasing costs through such things as bigger portion sizes or more service, a restaurant becomes more attractive to customers, thereby increasing _.

Question 8

Poor speed of service and inattentive staff are the most common service complaints. What factors cause customers to perceive these problems?

Question 9

Table d'hôte is a method of pricing in which:

A) a complete meal costs a set price.
B) individual items are priced individually.
C) the customer chooses which price to pay for a meal, depending on service.

Question 10

What are the steps that should be taken during employee training to ensure good service?

Question 11

Inventory costs and waste costs can be kept down by a(n):

A) constantly changing menu.
B) limited menu.
C) extensive menu.

Question 12

Which is NOT an example of a captive customer base?

A) College dorm
B) Jail
C) Neighborhood restaurant

Question 13

Which is the largest contractor, with 29 percent of the market?

A) Canteen
B) Sodexho
C) Aramark

Question 14

A limited menu the number of customers.

A) generally does not affect
B) increases
C) restricts

Question 15

In recent years pizza chains have pursued a strategy of competing on price by targeting
and young families.

Question 16

Describe "careful expansion."

Question 17

What is employee turnover and why is it a problem?

Question 18

To a large extent, high employee costs are a result of poor .

Question 19

What type of chain accounts for the most sales in the United States?

A) Sandwich
B) Chicken
C) Pizza

Question 20

The manager waits until trends work their way through society and manifest themselves.

Question 21

Counter service allows customers to sit at a counter facing the production area.

Question 22

For the operator, daily specials are always considered a way to offer the customer fresh foods.

Question 23

Using convenience items will result in greater labor cost but lower food cost.

Question 24

Lack of sales often comes from a lack of and creativity in developing new ideas.

Question 25

Most restaurants operate on relatively profit margins.

Question 26

It is anticipated that the quick- service segment of the industry, clearly the healthiest overall, will experience explosive growth in the next few years.

Question 27

One way to _ an operation is to sell a product or service at additional times.

Question 28

What type of restaurant relies on promotional tie- ins? Why are promotional tie- ins so important for this type of restaurant?

Question 29

What factors should go into choosing a menu size?

Question 30

Restaurateurs most frequently use family and friends, food and equipment vendors, and printed materials as sources of information.

Question 31

Since the restaurant business tends to be highly labor intensive, the cost of labor is a major determinant in the price of a meal-the more service, the greater the labor cost and the higher the price.

Question 32

Managers, followed by cooks, are the major problem areas when it comes to employee retention.

Question 33

The market is not easily swayed by new trends.

Question 34

Restaurants that are built for pleasure appeal mostly to the need to refuel the body.

Question 35

On any given day in the United States about half the population will be customers of the foodservice industry.

Question 36

Some hotels are developing concepts to appeal to _ as well as in- house guests.

Question 37

Menus that are variable are used in fast- food and specialty operations.

Question 38

Describe frequency of menu change and how it can affect an operation.