George’s Restaurant had the following menu sales during a period of one week:
A. Calculate the menu mix percentage for each menu item
B. Calculate menu contribution margin for the week
C. Calculate menu food cost percentage for the week
Menu Item Sales Food Cost Menu Price
Strip Steak 73 $6.50 $18.90
Fried Chicken 90 $3.90 $12.75
Lamb Chops 55 $7.00 $20.35
Fried Scallops 92 $5.90 $18.50
Broiled Haddock 85 $4.50 $15.65
Roast Turkey 92 $3.00 $12.00
Baked Stuffed Shrimp 77 $6.70 $18.50
Veal Marsala 65 $6.50 $ 18.75
Is contribution margin for menu items more significant than food cost percentage when determining restaurant profit? Explain your answer. Does a large contribution margin for each menu item necessarily mean that the restaurant is profitable? Explain
Would a Menu Engineering Worksheet that list appetizers, entrees and deserts be useful to management in determining which menu items to delete, raise or lower price, or otherwise change? Explain why or why not.
Under what circumstance might dogs be kept on the menu rather than eliminated?
What can be done to puzzles to increase menu profitability? Explain your answer.
Why are all stars not the same? Explain why one would be better than another
Under what circumstances might you eliminate a plowhorse from the menu?
What are the possible positive and negative consequences of substituting different menu items for those with low contribution margins?
In what ways is the graphic representation of dogs, plowhorses, puzzles, and stars helpful in determining what to do about altering menu items?