HTM 2030 Lecture Notes - Lecture 12: Empowered, Contribution Margin, Serving Size

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: William Murray

Document Summary

Chapter 11: menu engineering (cid:862)we take dollars, (cid:374)ot per(cid:272)e(cid:374)tages, to the (cid:271)a(cid:374)k (cid:863) Cost controls are extremely important: maintaining reasonable food cost percentages is critical, however, contribution margins in absolutely terms are what allows an operation. Preferences: selling items with high contribution margins, selling items that are popular. The evaluation of every item on a menu relative to: profitability. Contribution margin category: compares the contribution margin for each menu item with the average contribution margin for the menu. Low = item has cm below menu average. High = item has a cm above menu average. Menu mix category: compares the popularity of each menu item with the item percentage calculated in box q. Low = item has a popularity below relative item percentage. High = item has a popularity above relative item percentage. Stars: both profitable and popular, normally leave these items alone. May make slight alternations to maximize outcomes.