Question 1- David Berger is the F&B director at the private membership Fox Ridge Country Club. He is implementing a new dining room menu and has calculated menu prices for the six new entrée items the menu will include. Review the worksheet below and then answer the questions that follow.
| Menu Item |
Selling Price |
Product Cost |
Per Serving Labor Cost |
| New York Strip |
$ 26.95 |
$ 12.97 |
$ 1.95 |
| 1/2 Duckling |
$ 25.95 |
$ 11.73 |
$ 2.55 |
| Veal Chop |
$ 31.95 |
$ 13.85 |
$ 1.95 |
| Roasted Free-Range Chicken |
$ 18.95 |
$ 6.53 |
$ 2.55 |
| Pork Medallions |
$ 24.95 |
$ 5.58 |
$ 3.10 |
| Portabella Mushroom Pasta |
$ 18.95 |
$ 3.85 |
$ 4.25 |
A. Which of David's items has:
The lowest food cost %-
The highest food cost %-
B. Which of David's items have:
The lowest prime cost-
The highest prime food cost-
C. Which of David's items have:
The lowest contribution margin-
The highest contribution margin-
D. What would David's overall food cost % be if each of the six items sold on the menu were equally popular?
E. How crucial do you believe David's mew prices are to his potential diners' frequency of visit? Explain your answer.
Question 2- Fawzia Mohamed is the GM and RM of a popular 300-seat family-style Italian restaurant open only for dinner. Nightly, she calculates a variety of statistics that help her better understand the revenue-generation abilities of her operation. Complete the revenue generation report she has developed using today's data and then answer the questions that follow.
| Nightly Revenue Generation re-cap Date: Today |
| Hour of Operation |
Guests Served |
Check Average |
Revenue |
| 5-6 p.m. |
118 |
$11.25 |
|
| 6-7 p.m. |
251 |
$13.25 |
|
| 7-8 p.m. |
|
$13.97 |
$4,400.55 |
| 8-9 p.m. |
264 |
$12.98 |
|
| 9-10 p.m. |
102 |
|
$1,096.50 |
| Total |
|
|
|
| Table Turns = |
|
|
|
A. How many guests did Fawzia's sent on this night?
B. What was Fawzia's total revenue for the right?
C. What was Fawzia's check average for the Tight?
D. What would Fawzia calculate her restaurant's table turns for the night to be?
E. What revenue management challenge does Fawzia face from 7-8 P.M.? What would you advise her to do about it?
Question 3- The menu at Lards Salads and Subs consists of only four items. These are salads, subs, drinks, and chips. Lara's menu and the historical sales data she has collected over the past three months are presented as follows. Lara is considering the potential impact on revenues of creating a value meal by bundling a salad, sub, chips, and drink, and pricing the four item package at $ 9.99. Currently, her menu mix (based on a 1,000 guest sample) and selling prices are as shown:
| Lara's Menu Mix |
| Menu Item |
# Sold per 1,000 Guests |
Selling Price |
| Salad |
660 |
3.49 |
| Sub |
812 |
6.99 |
| Chips |
420 |
0.99 |
| Drinks |
940 |
0.99 |
A. Based on the historical data, for each 1,000 guests served what would Lara's revenue be from:
Salad sales?
Sub sales?
Chip sales?
Drink sales?
All product sales?
B. What is Lara's historical check average?
Assume that the $9.99 packaged meal Lara proposes is put into place and that in the coming days, 1,000 new customers are served. Assuming no other changes to menu mix;
C. What would the operation's total revenue he if 25 percent of the guests select the value meal?
D. What would the operation's total revenue be if 50 percent of the guests select the value meal?
E. If you were Lara, how would you evaluate the wisdom of implementing the new meal package?
Question 4- Assume you are the RM for a newly opened theme park in a major southwestern city. Your guests will consist primarily of families visiting the park, as well as schoolchildren on field trips and church youth groups. Yours is the only such park within 150 miles. Identify at least five noncost factors you would want to consider as you determine the prices that will be charged for the menu items you will sell. Explain why you selected each factor chosen.
Question 5- Dino's Bar B Q serves only three dinner plates. These are Bar B Q chicken, beef brisket, and smoked sausage links. Dino's served 1,000 guests each day on Monday, Tuesday, and Wednesday of last week. Scott Larsen, the restaurant's manager tracked the percent of guests who chose each item on those three days. Each item's selling price and the operation's menu mix is detailed in the following table. Review Scott's operating information for the three days and then answer the questions that follow.
| % Selected |
| Item |
Price |
Monday |
Tuesday |
Wednesday |
| Chicken |
$ 14.95 |
30% |
$0.50 |
20% |
| Brisket |
$ 8.95 |
50% |
$0.30 |
30% |
| Links |
$ 11.95 |
20% |
$0.20 |
50% |
A. On Monday, what was Scott's:
Total revenue?
Check average?
B. On Tuesday, what was Scott's:
Total revenue?
Check average?
C. On Wednesday, what was Scott's:
Total revenue?
Check average?
D. For the combined three-day period, what was Scott's:
Total revenue?
Check average?
Percent difference in revenue generated when comparing his lowest to his highest income day?
E. Assume that Scott's restaurant is often full, and that he is not authorized to increase his menu prices. What specific steps would you advise him to take to increase his operation's total income?