CFSP Marketing & Sales Management 2 — Questions and Answers
Question 1: What does 'RevPASH' measure in foodservice sales analysis?
- Revenue Per Available Seat Hour (Correct answer)
- Relative Price Adjustment for Seasonal Hours
- Return Percentage After Shift Handover
- Revenue Per Active Service Hour
Correct answer: Revenue Per Available Seat Hour
RevPASH (Revenue Per Available Seat Hour) measures how efficiently a restaurant generates revenue from its seating capacity over time, combining occupancy and check average.
Question 2: A restaurant's average check is $22 and its customer retention rate is 65%. What marketing strategy would MOST directly improve long-term revenue?
- Reducing menu prices to attract new customers
- Implementing a structured loyalty rewards program (Correct answer)
- Increasing portion sizes without changing prices
- Adding more tables to increase total seating capacity
Correct answer: Implementing a structured loyalty rewards program
A loyalty rewards program directly addresses customer retention by incentivizing repeat visits, which is more cost-effective than constantly acquiring new customers.
Question 3: Which of the following is an example of primary market research for a foodservice operation?
- Reviewing industry trade publications for trend data
- Analyzing competitor menus available online
- Conducting in-house customer surveys about menu preferences (Correct answer)
- Reading government food consumption statistics
Correct answer: Conducting in-house customer surveys about menu preferences
Primary research is collected directly from original sources — in this case, surveying actual customers yields first-hand data specific to the operation.
Question 4: What is 'customer lifetime value' (CLV) in the context of foodservice marketing?
- The total number of visits a customer makes before switching to a competitor
- The projected total revenue a customer generates over their entire relationship with the operation (Correct answer)
- The maximum discount a loyal customer can receive per visit
- The average number of referrals a satisfied customer provides
Correct answer: The projected total revenue a customer generates over their entire relationship with the operation
CLV represents the total net revenue a business can expect from a customer over the entire duration of their relationship, guiding investment in retention strategies.
Question 5: A catering company wishes to expand its corporate lunch business. Which marketing approach would be MOST effective?
- Running television commercials during evening news broadcasts
- Sending personalized proposals and sample menus to HR managers at nearby companies (Correct answer)
- Distributing flyers in residential neighborhoods near the facility
- Advertising on social media platforms targeting teenagers
Correct answer: Sending personalized proposals and sample menus to HR managers at nearby companies
B2B catering sales require direct outreach to decision-makers like HR or office managers, making personalized proposals far more effective than broad consumer advertising.
Question 6: What is the primary function of a 'mystery shopper' program in foodservice?
- To identify and recruit top talent from competing restaurants
- To evaluate service, food quality, and operations from a customer's perspective (Correct answer)
- To monitor competitor pricing strategies covertly
- To test new menu items before a public launch
Correct answer: To evaluate service, food quality, and operations from a customer's perspective
Mystery shopper programs use anonymous evaluators to assess the actual customer experience, providing objective data on service quality, food consistency, and operational standards.
Question 7: Which element of the promotional mix involves non-paid, third-party media coverage of a foodservice operation?
- Advertising
- Personal selling
- Public relations (Correct answer)
- Sales promotion
Correct answer: Public relations
Public relations encompasses activities that generate unpaid media coverage (press releases, events, community involvement) to build brand image and awareness.
CFSP Marketing & Sales Management 2
What does 'RevPASH' measure in foodservice sales analysis?