HTM 4414 Lecture Notes - Lecture 4: Full-Time Equivalent, Sodium Silicate, Draught Beer

• School: Virginia Tech
• Department: Hospitality and Tourism Management
• Course: HTM 4414
• Professor: Dallinger

Document Summary

3/21 : non-financial considerations for pricing, range of prices, relationship between menu items, price inclusion// exclusion, added value consider overhead, cross-selling & up-selling, cross-selling packaging other revenue sources with core product a. i. Wine pairing: up-selling upgrading a purchase to a higher quality, van westendorp price sensitivity meter determines range of acceptable prices and an optimal price point based on an analysis of price. Objective pricing: subjective (gut feeling, rumor) a. i. Reasonable price method attract in with the lower price item and then increase price of other items to compensate a. ii. Intuitive method (wild guess: objective using financial data to create a pricing structure, mark-up pricing method, step 1 determine food cost a. i. Total cost of menu items including all components: step 2 determine multiplier b. i. Calculated based on operating budget: step 3 establish a base selling price. Budgeted labor cost/ expected number of guests: step 2 determine prime cost per guest c. i.