CRM Food Cost Management & Pricing 3

Question 1

A restaurant's monthly food sales are $95,000 and food cost is $31,350. What is the food cost percentage?

Accepted Answer

33%

Answer

Food cost % = Food Cost ÷ Food Sales × 100 = $31,350 ÷ $95,000 × 100 = 33%.

Question 2

Which technique involves reducing portion sizes while maintaining the same price to manage rising food costs?

Accepted Answer

Shrinkflation

Answer

Shrinkflation reduces portion sizes rather than raising prices, allowing operators to maintain margins without visible price increases.

Question 3

In the Texas Restaurant Association's food cost formula, what does 'transfers out' refer to?

Accepted Answer

Ingredients moved from the kitchen to the bar or other departments

Answer

Transfers out are ingredients moved from food inventory to bar or other cost centers, reducing the food department's COGS.

Question 4

What is a 'phantom recipe' and why is it problematic for food cost control?

Accepted Answer

An undocumented dish made by staff that consumes inventory without recorded sales

Answer

Phantom recipes are unofficial dishes staff create for themselves or give away, causing inventory shrinkage that inflates the apparent food cost percentage.

Question 5

When conducting a 'should-cost' analysis, a manager compares actual food cost to what figure?

Accepted Answer

Theoretical food cost based on standardized recipe costs and sales mix

Answer

Should-cost (theoretical) analysis calculates what food cost ought to be based on recipes and actual sales volume, then compares it to actual spending to find variances.

(CRM) Certified Restaurant Manager Practice Test

(CRM) Certified Restaurant Manager Practice Test

CRM Food Cost Management & Pricing 3