Menu Planning and Costing Flashcards

What is the break-even point in menu costing terms?

Answer: The sales volume at which total revenue equals total costs

Break-even is where total revenue covers all fixed and variable costs, yielding neither profit nor loss.

A chef increases a dish's portion size by 15% without adjusting the selling price. What is the direct financial impact?

Answer: Food cost percentage increases

A larger portion raises the food cost per serving without increasing revenue, pushing the food cost percentage upward.

Which purchasing term describes the price paid for an ingredient before any trimming or cooking loss is considered?

Answer: As-purchased (AP) price

The as-purchased price is what is paid at the time of delivery, before any preparation reduces the usable quantity.

A restaurant generates $420,000 in annual food sales with $126,000 in food costs. Its fixed costs are $180,000 and variable costs (excluding food) are $84,000. What is the net operating profit?

Answer: $30,000

Profit = $420,000 − $126,000 − $180,000 − $84,000 = $30,000.

In menu development, 'plate cost' refers to:

Answer: The total food cost of all components on a single serving

Plate cost is the sum of costs for every ingredient — protein, starch, vegetable, sauce, garnish — in one portion.

A concept called 'menu fatigue' most often occurs when:

Answer: A static menu offers no new items over a long period, reducing repeat visits

Menu fatigue happens when regular guests stop returning because the menu never changes and offers no novelty.

When evaluating a new menu item's feasibility, a chef calculates the 'payback period' by dividing:

Answer: Setup or development cost by the item's expected weekly contribution margin

Payback period estimates how many weeks it takes for an item's contribution margin to recover its development or startup cost.