Deck 5: Pricing and Designing the Menu

Question 1

A properly designed menu helps with:

A) promoting the sale of specialty items.
B) improving sales anywhere from 2 to 10 percent.
C) increasing the average check.
D) all of the above.
E) none of the above.

Answer 1

E

Question 2

is successful if it brings in customers at the reduced price who would not come in otherwise.

Answer 2

Marginal pricing

Question 3

The function of a menu is:

A) to provide an essential marketing function.
B) to serve as a contract with the customer.
C) to list various product offerings.
D) all of the above.
E) none of the above.

Answer 3

E

Question 4

A cost increase can result from an:

A) increase in the minimum wage.
B) increase in the cost of borrowing money.
C) increase in the cost of advertisement.
D) only A and B.
E) only A and C.

Question 5

Competitive Pricing usually sets prices:

A) slightly below those of competition.
B) slightly above those of competition.
C) both of the above.
D) neither of the above.

Question 6

The menu should be designed to complement the overall theme of restaurant.

Question 7

A table d'hôte menu consists of:

A) a set number of courses at a set price.
B) prices based exclusively on market prices.
C) a fixed price set for all meals.
D) individual prices for each menu item.

Question 8

If a menu item is priced at $12.99, it's an example of:

A) price rounding.
B) first- figure dominance.
C) psychological pricing.
D) odd- cents pricing.

Question 9

What are market skimming and market penetration?

Question 10

Calculate the gross mark- up when there is $900,000 in annual sales with a projected cost of 40 percent, and an anticipated customer count of 125,000.

Question 11

should always have a bin number listed on the menu.

Question 12

Menu engineering combines the concepts of menu mix percentage and dollar contribution margin to determine:

A) menu scoring.
B) food cost percentage.
C) relative strength of menu items.
D) the point of sales.

Question 13

Calculate the selling price of a steak that has a raw food cost of $6.25 and a desired food cost percentage 30 percent.

Question 14

What is cost- oriented pricing?

Question 15

The gross markup is determined by the cost of food sold from projected sales and dividing the result by the number of meals or covers.

Question 16

combines the profitability and popularity of menu items to arrive at a consensus score.

Question 17

Demand- oriented or perceived- value pricing looks at the menu from the viewpoint of the
.

Question 18

Fixed costs:

A) stay constant.
B) do not vary as volume varies.
C) vary proportionately with volume.
D) vary as volume varies.

Question 19

In the "actual pricing" or "all cost plus profit pricing" method, the price of higher- cost entrées is:

A) not changed compared to other pricing methods.
B) reduced compared to other pricing methods.
C) raised compared to other pricing methods.
D) not determined by the actual pricing methods.

Question 20

The weight and quality of the paper on which the menu is printed:

A) gives a feeling of quality.
B) adds to the impact.
C) has no effect.
D) only A and B.

Question 21

The simplest method of evaluating menu prices is to compare the average check desired with the number of customers.

Question 22

Explain why poultry is increasing in popularity among customers.

Question 23

Name five of the major elements of menu design and explain their importance.

Question 24

Competitive pricing establishes prices according to those set by the competition.

Question 25

Menu pricing is solely an accounting function.

Question 26

A menu is a list of item prices.

Question 27

Design a menu with five items making sure to include all the necessary elements of a good menu. Also, make sure to name which type of menu you are demonstrating.

Question 28

One way to increase the sale of infrequently ordered items is to include them with the entrée and charge more for the package.

Question 29

Two common approaches in demand- oriented pricing are market skimming and market penetration.

Question 30

On a threefold menu the center is crossed by the customer's eyes at least four times.

Question 31

List and explain the three ways to list prices on a menu.

Question 32

The gross mark- up or gross profit pricing method assumes that every customer should pay a specific amount to cover nonfood costs and profit.

Question 33

The of a menu item is defined as its raw food cost plus the labor cost involved in preparing the item.

Question 34

Demand- oriented or perceived- value pricing looks at the menu from the viewpoint of the restaurant. Prices are determined relative to what the item is worth to the customer.

Question 35

In the factor, cost- multiplier, or mark- up system, the raw food is multiplied by a pricing factor or divided by the desired food cost percentage to arrive at a selling price.