cost Control and Purchasing Week 3 discussion help

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Part 1: Primary Task

Within the Discussion Forum area, write 100 – 150 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Managers need the ability to measure the overall average food cost percentage when the menu includes some items that sell at lower or higher food cost percentages. Having accurate menu costing data is important so managers can make menu modifications and price adjustments. They measure outcomes with a menu product mix, a detailed analysis that shows the quantities sold of each menu item, along with their selling prices and standard portion costs.

The menu product mix is used to determine the composite (potential) food cost percentage. The composite (potential) food cost percentage is the weighted average food cost percentage for all items sold. It is this average, not each individual item that must meet the operation’s standard food cost percentage.

Choose one of the following methods to assist for your paper submission

 Choice #1

Please answer the following questions:

  • Identify a specific style of restaurant (fast food, fine dining, casual, etc.)
  • Explain the two different ways the establishment may choose to do its pricing.
  • Identify which you believe is the best pricing method.

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