What can be done to puzzles to increase menu profitability

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Reference no: EM132121375

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?

Reference no: EM132121375

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