Menu Engineering

Contribution margin considers both variable costs and fixed costs

• True

• False

The higher the food cost percentage, the more profitable a hospitality operation will be

• True

• False

Contribution margin should be used when determining the prices on a menu

• True

• False

If a Pizza is priced at $25 and the cost to produce the pizza is $5, what is the contribution margin?

• $30

• $25

• $5

• $20

If a pizza is priced at $25 and the cost to produce the pizza is $5, what is the food cost percentage?

• 25%

• 15%

• 20%

• 50%

Puzzle (menu) items should be hidden on your menu

• True

• False

Star menu items are:

• High Profitability, Low Popularity

• Low Profitability, High Popularity

• Low Profitability, Low Popularity

• High Profitability, High Popularity

Puzzle Items are:

• High Profitability, High Popularity

• High Profitability, Low Popularity

• Low Profitability, High Popularity

• Low Profitability, Low Popularity

A dog item should be placed on a menu where it will be ordered the most.

• True

• False