HTM 2030 Lecture Notes - Lecture 11: Cost Accounting, Contribution Margin

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

Document Summary

We talk dollars, not percentages, to the bank : cost control are extremely important, maintaining reasonable food cost percentages is critical, however, contribution margins in absolutely terms are what allows an operation to earn profit. Selling items with high contribution margins: preferences, menu engineering worksheet, developed by kasavana and smith, the evaluation of every item on a menu relative to: Contribution margin: categories of analysis, contribution margin categories, compares the contribution margin for each menu item with the average contribution margin for the menu. Low = item has a cm below menu average. High = item has a cm above menu average. Compares the popularity of each menu item with the item percentage calculated in. Low = item has a popularity below relative item percentage.