CSC Cost Control & Purchasing Flashcards

What is 'menu engineering' in a restaurant management context?

Answer: Analyzing menu items by profitability and popularity to optimize the menu mix

Menu engineering categorizes items as Stars, Plowhorses, Puzzles, or Dogs based on profitability and popularity to guide pricing, promotion, and removal decisions.

What is the difference between variable costs and fixed costs in a restaurant?

Answer: Variable costs change with sales volume; fixed costs remain constant regardless of sales

Variable costs such as food fluctuate with sales volume, while fixed costs such as rent and loan payments remain constant regardless of how busy the restaurant is.

What is 'inventory shrinkage' in a professional kitchen?

Answer: Inventory loss from spoilage, theft, over-portioning, or administrative errors

Shrinkage in inventory management refers to stock losses from any cause including spoilage, employee theft, over-portioning, and record-keeping errors.

What is 'contribution margin' in menu pricing?

Answer: The selling price of an item minus its food cost

Contribution margin is the menu price minus the food cost of an item, representing how much each sale contributes toward covering overhead and generating profit.

Which purchasing approach typically offers the lowest unit cost for ingredients?

Answer: Buying in bulk with adequate dry and cold storage capacity

Bulk purchasing yields lower unit costs through volume discounts, provided the operation has adequate storage and can use the product before spoilage.

What is a 'perpetual inventory' system?

Answer: A continuous real-time tracking system that updates with every purchase and use

A perpetual inventory system continuously tracks stock levels in real time, updating records with every receipt and issue so management always knows current quantities on hand.