Controlling F&B Operation

What factor(s) may affect revenue of a restaurant?

• A new restaurant opening nearby offering similar cuisine

• Fluctuations in ingredient costs

• Severe weather in the area

• Economic crisis

• Increased negative reviews on social media

In the F&B context, revenue is the (a)   generated from selling food and beverages to customers.

Which of the following are overhead costs?

• Materials

• Service staff salary

• Water

• Insurance

• Rent

Which of the following are fixed costs?

• Ingredients

• Laundry

• Rent

• Insurance

Break-even is the point at which total costs are (a)   to total sales, resulting in neither a profit nor a loss.

According to the menu engineering approach, if lobster risotto dish is low in popularity but high in cash contribution, in which category of the matrix should it be placed?

• Stars

• Plow horses

• Puzzles

• Dogs

What information do you need to create an effective forecast for an F&B operation?

• Weather forecast

• Upcoming major events in the area

• The business's sales records

• Market trends

Why is budgeting important in an F&B operation?

• It helps set daily specials and attract more customers.

• It ensures that the restaurant spends more than it earns to encourage growth.

• It provides a financial plan to manage costs, maximize profits, and allocate resources efficiently.

• It eliminates the need for inventory management and cost control.

What are the advantages of using standard recipes in a restaurant?

• They allow for more creativity in menu design.

• They ensure consistency in food quality, portion sizes, and cost control.

• They eliminate the need for staff training and skill development.

• They reduce the need for inventory management.

Why is F&B control generally more difficult than controlling materials in other industries?

• Food and beverage items are perishable and have short shelf lives.

• F&B operations have a more predictable demand compared to other industries.

• Employee efficiency can vary significantly in F&B operations.

• F&B items typically have standard production processes and ingredients.