Question 1

At the beginning of a buffet meal a manager placed $1,100 worth of food on the buffet line. During the meal another $500 of food was added to the line. At the end of the meal the value of the remaining food was $400. The manager served 100 guests. What was the buffet's cost per guest served during this meal period?

Accepted Answer

The total cost of the food was $1,100 + $500 = $1,600. The value of the remaining food was $400, so the cost of the food that was served was $1,600 - $400 = $1,200. The cost per guest served was $1,200 / 100 = $12.00.

Question 2

In the food service industry, the term "price spread" refers to the

Accepted Answer

The term "price spread" in the food service industry refers to the difference between a menu's highest and lowest priced item. This helps in understanding the range of prices offered and can influence customer choices and perceptions of value.

Question 3

Pricing beverages for open-bar receptions can often be challenging because

Accepted Answer

B) There may be differences in the consumption habits of each group served, making it challenging to accurately price beverages for open-bar receptions. This variability affects how much of each type of beverage needs to be available and can impact the overall cost.

Question 4

A manager buys a 12-bottle case of chardonnay for $59.40. The manager wants to achieve a contribution margin of $12.00 per bottle for this type of wine. At what price should the manager sell each bottle of chardonnay?

Accepted Answer

The answer of A manager buys a 12-bottle case of...

Question 5

One reason why craft beers typically sell for prices higher than regular beers is that craft beers

Accepted Answer

Craft beers often have a higher Alcohol By Volume (ABV) than regular beers, which can contribute to their higher price due to the quality and quantity of ingredients required to achieve this higher alcohol content.

Question 6

The "Standard" menu format is the type of menu format most commonly used in commercial restaurants.

Accepted Answer

The "Standard" menu format, often referred to as a traditional or à la carte menu, is the most commonly used menu format in commercial restaurants, offering individual items each priced separately.

Question 7

In most cases, the production skills required to produce a cycle menu are less than the skills needed to produce a standard menu.

Accepted Answer

A cycle menu requires careful planning to ensure variety and nutritional balance over the cycle, often demanding more diverse production skills to accommodate the changing dishes, whereas a standard menu typically involves a fixed set of dishes, allowing staff to specialize and refine their skills on those specific items.

Question 8

As the level of service provided in an operation increases, the operation's selling prices should also be increased.

Accepted Answer

Higher levels of service often involve additional costs for the operation, such as increased labor, training, or quality materials, which are typically passed on to the customer through higher selling prices to maintain profitability.

Question 9

If a menu item cost an operation $4.00 to produce, and the operation seeks to achieve a 25% food cost, the item should be sold for $10.00.

Accepted Answer

The answer of If a menu item cost an operation...

Question 10

Operations should always seek to price their menu items at, or below, the prices charged by their competitors.

Accepted Answer

Pricing strategy should consider factors such as cost, perceived value, target market, and brand positioning, not just competitor prices. Charging higher prices may be viable if the operation offers unique value or quality that justifies the premium.

Question 11

Product cost percentage and product contribution margin are the two primary methods used to establish foodservice prices.

Accepted Answer

Product cost percentage and product contribution margin are both methods used to determine pricing in foodservice by analyzing costs and desired profit margins.

Question 12

It costs an operation $3.00 to produce a menu item. The operation sells the item for $12.00. As a result, the food cost percentage for this item is 20%.

Accepted Answer

The food cost percentage is calculated as (Cost of producing the item / Selling price) * 100. So, for this item, it would be ($3.00 / $12.00) * 100 = 25%.

Question 13

Contribution margin is the amount of money that remains after an item's product cost has been subtracted from its selling price.

Accepted Answer

Contribution margin is calculated by subtracting the total variable costs of a product from its selling price, indicating the amount of revenue available to cover fixed costs and generate profit.

Question 14

Value pricing refers to the strategy of reducing prices on selected menu items for the purpose of increasing an operation's total sales revenue.

Accepted Answer

The answer of Value pricing refers to the strategy of...

Question 15

The vintage of a wine refers to the type of grape used to produce it.

Accepted Answer

The vintage of a wine refers to the year in which the grapes were harvested, not the type of grape used.

Quiz 6: Managing Food and Beverage Pricing