HTM 2030 Chapter Notes - Chapter 11: Menu Cost, Foodservice, Contribution Margin

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

Document Summary

Cost controls are extremely important: maintaining reasonable food cost percentages is critical, however, contribution margins in absolutely terms are what allows an operation to earn profit. Preferences: selling items with high contribution margins. Cm = selling price = vc: selling items that are popular. Menu engineering worksheet: developed by kasavana and smith, the evaluation of every item on a menu is relative to: Menu mix: recall: s = fc + vc + p. Categories of analysis: contribution margin category. 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: column c: menu mix percent. Same as the popularity index: column f: item cm, column g: menu cost. Portions sold x individual cost $ = menu cost : column h: menu revenues. Portions sold x item sales price $ = menu revenue : box o: average cm.