Chapter 2 Menu Planning as a Control Tool
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B. The Riverside Cove Restaurant is located in Springfi eld, a large bustling city.
Jaime has plans to open a second location in the smaller suburban town of
Middleburg. Jaime’s market survey indicates that the citizens of Middleburg
are not willing to pay the same prices as the Springfi eld customers. With this
in mind, she realizes that menu prices must be adjusted while still generating
a profi t. The Springfi eld location’s most popular entrée sells for $11.90 using a
50 percent prime cost. Using the prime cost method, what prime cost percentage
must Jaime use if she wishes to lower the selling price by $1.50 at Middleburg?
Springfi eld Entrée Price Middleburg Entrée Price
Prime cost percentage 50%
Food cost $1.75 $1.75
Wages $3.50 $3.50
Benefi ts percent 20% 20%
Sell price $11.90 $10.40
C. Jaime determines that she must maintain a 50 percent prime cost, but believes
she can reduce her costs due to wages at the Middleburg location. Find the
amount that Jaime can spend on wages for this entrée if she wants to maintain
a 50 percent prime cost and a $10.40 selling price.
Springfi eld Entrée Price Middleburg Entrée Price
Prime cost percentage 50% 50%
Food cost $1.75 $1.75
Wages $3.50
Benefi ts percent 20% 20%
Sell price $11.90 $10.40
Course Project
The Course Project is a full case study on controlling costs in a foodservice operation. Each
chapter presents one component of the project. Refer to other completed components to answer
the following questions.
17. Write a lunch menu for your foodservice establishment. Assume an average customer
count of 200 for lunch. The menu should include the following items:
3 appetizers
4 entrées
5 side dishes
4 beverages
3 desserts
18. Design the menu layout and create a physical menu. Explain how the design
refl ects fi nancial considerations.
19. Develop a recipe for one appetizer, one entrée, and one dessert. For each recipe,
list the ingredients needed and determine the quantity of each ingredient needed
to prepare 50 portions. Estimate the cost of each ingredient and cite the source for
each estimate.
20. Price the three menu items using one of the pricing methods described. Name the
menu pricing method used and provide your calculations.