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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
Roasted Free-Range Chicken
$18.95
$6.53
Pork Medallions
$24.95
$5.58
$3.10
Portabella Mushroom Pasta
$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? ____________ Thehighest 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 menu prices are to his potential diners' frequency of visit? Explain your answer.
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