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HB 267 Exam 1
Terms in this set (63)
Restaurant and foodservice employment represents _____% of total employment in Michigan
On a typical day in 2014 the restaurant industry should post over __________ sales.
About ___% of adults got their first job experience in a restaurant:
In 2014, the restaurant industry's overall impact on the nation's economy exceeded _______.
____% of eating and drinking place firms are owned by women.
____% of eating and drinking places have fewer than 50 employees:
The US restaurant industry employs about
13.5 million people
Restaurant industry sales equal ___% of the US gross domestic product (GDP):
The typical employee (over 50%) in a foodservice occupation is:
Single, female and under the age of 30
In 2014 restaurants will provide more than _______ snack and meal occasions:
There are about _______ restaurants in Michigan (as of 2013):
About ___% of all adults in the United States have worked in the restaurant industry at some time during their lives.
More than ___% of foodservice managers have annual household incomes of more than $50,000.
In 2014 restaurant sales in Michigan are estimated to be:
More than 50 percent of all consumers visit a restaurant on:
One who is granted the right by another to market the company's concepts
During which stage of a restaurant's life cycle will sales increase at a decreasing rate:
The maturity stage
Cost control, organizing shift operations, unit coordination and control, employee development and customer relations are all:
Essential to a manager's job
A foodservice operation in which the sale of food is the primary activity and a profit is desired is known as:
Traditionally, foodservice operations are categorized as either commercial or onsite foodservice: T/F
Studies have shown that between 1/4th and 1/3rd of all new restaurant ventures fail in their first year of operations: T/F
Which of the follow would be considered to be a low utility foodservice?
Changes in the demographic environment, economic environment, technological environment and political environment:
Will have a major impact of how foodservice managers operate
The typical net profit for a food and beverage operation is less than 20%: T/F
The best way for a pizza chain to build their brand is by using a price matching strategy: T/F
In terms of the buying process convenience and value have taken on greater importance to restaurant customers: T/F
Which customer segment is likely to spend more than 40% more than the single paycheck segment?
Which of the following does NOT belong in the SMART acronym for promotional objectives?
A __ should be desirable, believable, exclusive, action oriented, and belong to your operation alone
A promotional message
When considering newspaper advertising, market selectivity is ____ and geographic selectivity is ________.
Radio is the primary advertising medium for most table service restaurants: T/F
In the article "Generation Revelations", the best audience for "fourth meal" and "third place" marketing was described as being:
Captive, mass, and status refer to the categories of:
Major market categories
In the two articles about customers' full-service and QSR restaurant preferences from Nation's Restaurant News it was stated more QSR customers choose restaurants because of food variety and quality than do full service restaurant customers: T/F
In the two articles about customers' QSR and full service preferences from Nation's Restaurant News it was stated that no matter the restaurant format price accounted for ___________ of all restaurant selections:
The purpose of promotion is to inform, persuade, and remind: T/F
Market penetration is a menu pricing method that is least likely to be suited for:
Fine dining restaurants
Which of the following is not an important consideration when developing a lunch menu:
Larger portion sizes
The most important thing to consider when developing a menu is the restaurant's identity and image: T/F
The raw food cost plus the labor cost involved in preparing the item is known as:
The prime cost
In menu engineering a plowhorse is an item with:
High sales and low contribution margin
The menu pricing principle of price rounding was a control method instituted by R. H. Macy the department store founder as a means of moving customers quickly through the checkout stand: T/F
According to the article "The Psychology of Menu Design" customers spend on average 109 seconds reading a menu: T/F
According to the article "The Psychology of Menu Design", it was found that 60-70% of restaurants sales came from fewer than:
18-24 Menu items
Sum of all (Number sold*Standard/budgeted portion cost)
Food Cost $
Food cost $/Food sales
Food cost %
Food sales-Food cost
Beg Inventory + Purchases - End inventory
Cost of Goods Sold /Average Inventory
Inventory Turnover rate
As a general rule a higher inventory turnover rate indicates a more efficient use of cash flows.
An industry rule of thumb for food inventory is a 10-day supply.
inventory turnover rate represents
Need to compare each of the variances to the total revenues
How to find which cost area (food or beverage) is likely to have the most significant cost control related impact on overall cash flows and profitability?
Beg Inv. Total bevs + Total Purchases - End Inv. Total
Total beverage costs
Difference between the cost of an item and the sale price
In the article "Profitability Analysis for Table-service Restaurants", the authors recommend which of the following methods as the best for measuring menu profitability?
Segmented contribution margin income statements
Segmented contribution margin income statement
Total beer cost/Total beer sales
Total beer cost= Beg Inv + Purchases - End Inv
Beer cost %
Total food cost/Total food sales
Food cost %
Another name for gross product
Payroll cost/total sales
Labor cost percentage
Item cost/menu selling price
Food Costs % for a single item
Expressing expenses as a percentage of sales provides a useful means for comparing:
The same costs for two different periods
Inventory turnover rate is used for
determining the number of times inventory is converted to revenues
The relationship between the cost incurred in establishing a control measure and the cost savings that result from the control is called:
If the club general manager says he wants to sell an item for $14.09 and he requires you to maintain a food cost between 36-37% what is the most it can cost to prepare the item?
Item cost/ MSP = FC %
x/.36 = 14.09 .... So, 14.09*.36 = $5.07
x/.37 = 14.09 .... So, 14.09*.37 = $5.21
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