CRM Food Cost Management & Pricing 5

Question 1

Which pricing strategy deliberately sets a low price on a loss-leader item to drive customer traffic and increase overall check averages?

Accepted Answer

Loss-leader pricing

Answer

Loss-leader pricing sacrifices margin on one item to attract guests who will then purchase higher-margin food and beverages during the same visit.

Question 2

What is 'product mix' and why does it affect overall food cost percentage?

Accepted Answer

The combination of menu items sold; high-cost items increase the blended food cost %

Answer

Product mix (sales mix) describes which items guests actually order; if guests buy more high food-cost dishes, the blended food cost percentage rises even if individual recipes are unchanged.

Question 3

A manager notices the restaurant consistently runs out of a key ingredient before the week ends. Which par level adjustment is needed?

Accepted Answer

Increase the par level to ensure adequate stock through the order cycle

Answer

Running out before the next order cycle indicates the par level is set too low and must be raised to cover actual usage plus a safety buffer.

Question 4

Which costing approach assigns a fixed overhead cost to each menu item in addition to direct food cost?

Accepted Answer

Full absorption costing

Answer

Full absorption costing spreads fixed overhead (rent, utilities, equipment depreciation) across menu items so prices reflect total cost, not just ingredients.

Question 5

A restaurant's beverage cost is tracked separately from food cost primarily for what reason?

Accepted Answer

Beverages have different cost structures and profit margins than food items

Answer

Beverage cost percentages (typically 18–24%) differ significantly from food cost percentages (28–35%), so blending them would mask performance problems in either category.

(CRM) Certified Restaurant Manager Practice Test

(CRM) Certified Restaurant Manager Practice Test

CRM Food Cost Management & Pricing 5