HM 351 Chapter Notes - Chapter 11: Menu Cost, Contribution Margin
Document Summary
Menu engineering: a technique used to evaluate a menu by assessing sales volume and contribution margin for each item on a given menu & thus to evaluate the individual menu items. Menu mix percentage: the ratio of the number of sales of one menu item to the total number of sales of all menu items, expressed as a percentage. Item contribution margin = sales price food cost. Menu cost = number of portions + individual cost. Menu revenues = number of portions sold * sales price. Menu contribution margin = units sold * item contribution margin. Average contribution margin = total contribution margin / total number sold. Item percentage = (1 / number of items on menu) * 70% L = lower than average cm: h = higher than average cm. Menu mix category: low or high for menu mix percentage of each item compared to item percentages.