Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

A Entre GS Steak

B # Sold 72 130

C Menu Mix%

D Food Cost $4.65 $5.35 $7.25 $4.20 $6.90

E Sales Price $14.45 $18.95 $22.50 $14.45 $16.45

F Item CM

G Menu Cost

H Menu Rev.

L Menu CM

P CM Cat.

R MM Cat.

S Class

Seafood 94 Tofu Pork Total Addtl Calcs. Addtl. Calcs. 154 125 N=

I= K=

J=

M= O= Q=

A Entre GS Steak

B # Sold 72 130

F Item CM

G Menu Cost

H Menu Rev.

L Menu CM

P CM Cat. L

R MM Cat. L H H H H

S Class Dog Star Star PlowH PlowH

Menu Food Sales Mix% Cost Price 12.52 % 22.61 % 16.35 % 26.78 % 21.74 % 100%

$4.65 $14.45 $9.80

$334.80 $1040.40 $705.60

$5.35 $18.95 $13.60 $695.50 $2463.50 $1768.00 H $7.25 $22.50 $15.25 $681.50 $2115.00 $1433.50 H $4.20 $14.45 $10.25 $646.80 $2225.30 $1578.50 L $6.90 $16.45 $9.55 $862.50 $2056.25 $1193.75 L

Seafood 94 Tofu Pork Total Addtl Calcs. Addtl. Calcs. 154 125 N= 575

I= J= M= $3220.8 $9900.45 $6679.35 K= O= Q= $11.62 14%

A = Menu items B = Number of menu item sold C (Menu mix %) = B Total # of entres sold D (Food cost) = Standard cost of each item E (Sales price) = Menu price of each item F (Item CM) = E D G (Menu cost) = D B H (Menu revenues) = E B

I = Combined menu cost of all items J = Combined menu revenues of all items K (Food cost %) = I J L (Menu CM) = F B M = Combined menu CM of all items N = Total items sold O (Average contribution margin) = M N

P (Contribution margin rating) = If the items F > O, then the item is designated a high contribution margin rating; if the items F < O, it is designated a low contribution margin rating. Q = (1 total number of menu items) 0.7 R (Menu mix rating) = If the items C > Q, then the item is designated a high menu mix rating; if the items C < Q, then it is designated a low menu mix rating. S = Menu item classification

Plowhorse High Popularity Low Contribution Margin Star Low Contribution Margin Low Popularity

Star High Popularity High Contribution Margin Puzzle High Contribution Margin Low Popularity

Stars: Profitable and popular; possible to increase their menu prices without affecting volume. Dogs: Unprofitable and unpopular; remove from the menu unless there is a valid reason for continuing to sell them or profitability can somehow be increased. Plowhorses: Unprofitable but popular; keep on menu but increase their contribution margins without decreasing volume. Puzzles: Profitable but unpopular; keep on menu but increase their popularity.
John Wiley & Sons, Inc. 2009