Title: Determine pricing for menu items.
Course: Culinary Arts II (16052-II) > Section: Using Business and Mathematics Skills

Determination should include

- consideration of food costs, labor costs, overhead, and anticipated profit
- analysis of the cost of menu items and associated costs
- consideration of the type of establishment
- consideration of the cost of living in the establishment’s location
- inclusion of psychological factors (e.g., round dollar, early bird specials)
- use of promotional techniques
- analysis of the target market.

Process/Skill Questions:

Thinking

- What is the Q-factor? How does it affect food cost percentage?
- What are psychological factors that would affect pricing and customer decisions?

Communication

- What is pre-costing?
- How can food costs determine menu items?

Leadership

- How do food service establishments determine a target market?
- How does net profit differ from gross profit?

Management

- How can one calculate the profit on a meal item?
- How can a food service establishment maintain a steady profit?
- What effect do competitor’s prices have on menu pricing?