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HADM 1350 Prelim II

Terms in this set (16)

Prime Cost Method
(EP Cost + ~Labor Cost)/(Target Food Cost % + Labor Cost%)
Factor Method
-Most common BUT does not reflect labor costs, not every item should be marked up
(EP Cost)/(Target Food Cost %)
MODIFIED Actual Cost
(EP Cost + ~Labor Cost + ~Fixed Cost + ~Occ. Cost)/(100% - (VC% + Target Profit%))
Minimal Account
examine only the differences between two options
Topical Account
relate possible choice outcomes to a reference level determined by decision context
Comprehensive Account
use all factors including wealth, future earnings, etc
Acquisition Utility
value of the good obtained relative to its price. Similar to consumer surplus
Transaction Utility
perceived value of the "deal". difference between amt. paid & 'reference price' for good
Nonstructured Pricing
-WAG Method
-Prices based on examination of competitors' prices only
-Success is luck
Star
-High Volume, High CM
-Maintain high menu visibility
-Keep quality consistent
-Promote internally
Plowhorse
-High Volume, Low CM
-Reduce portions/quality level
-Test price elasticity by raising prices
-Substitute
Puzzle
-Low Volume, High CM
-Move to more prominent position
-Rename/heavily market
-Turn to signature dish
Dog
-Low Volume, Low CM
-Raise price
-Lower ingredient cost
-Combine with less expensive dishes
-Remove
Contribution Margin
Price*Gross Profit%-(DOE per order)
Blind recieving
No invoice
Semi-blind
Purchase invoice that only lists products, no quantities
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