Marketing Research and Pricing Strategies

The percentage of the selling price of a food item that represents the cost of the ingredients.

The cost of a food item after all preparation and waste is accounted for, ready for sale.

A predetermined ratio that helps calculate the selling price of a menu item to achieve a desired food cost percentage.

A method of pricing menu items based on a predetermined percentage of the selling price that is allocated to the cost of food.

A method of determining the selling price of a food item by dividing the cost of the item by the desired food cost percentage.

The difference between the selling price of a product and its variable costs. It represents the amount of money contributed to covering fixed costs and generating profit.

The percentage of each sales dollar that contributes to covering fixed costs and generating profit. Calculated by dividing the contribution margin by the selling price.

Costs that change directly with the level of production or sales. Examples include the cost of raw materials, direct labor, and sales commissions.

Costs that remain constant regardless of the level of production or sales. Examples include rent, salaries, and insurance.

A pricing strategy where the selling price is set to cover both variable and fixed costs and generate a desired profit margin.

The overall impression of a restaurant's physical environment, which includes elements like décor, lighting, and music.

The quality and characteristics of the food products served, such as freshness, taste, and presentation.

The level of attentiveness, helpfulness, and professionalism provided by staff to customers.

The relationship between the price of a product and its perceived value to the customer. Customers expect a reasonable balance between what they pay and what they receive.

A price difference for the same menu item served at different times of the day, often with adjustments in portion size or service levels.

A smaller portion size offered during lunch compared to dinner, sometimes at a lower price.

The level of care and attention provided to customers, including factors like speed of service, table presentation, and staff demeanor.

The practice of clearly communicating to customers the reasons behind any price variations for menu items based on the time of day.

A method of forecasting that analyzes historical data to identify patterns and trends, then projects those trends into the future. It relies on the assumption that past patterns will continue to repeat in the future.

A forecasting approach that uses subjective judgments, opinions, and experience to estimate future demand. It relies on expert opinions and insights rather than data analysis.

A specific type of judgmental forecasting where a group of experts provides their insights and opinions on a particular topic. The responses are collected, analyzed, and then fed back to the experts for further consideration. This iterative process aims to reach a consensus.

A forecasting method that uses statistical models to analyze historical data and identify patterns and relationships. The aim is to understand the underlying causes of past trends and use them to predict future outcomes.

A type of judgmental forecasting that involves gathering information directly from customers, distributors, or other stakeholders to understand their perceptions and expectations about future demand.

A pricing tactic used in hospitality, especially for bottled wine, where higher prices might lead to lower sales because customers are concerned about value.

The percentage of the selling price that represents the product's cost. It's a common measure of profitability.

Adjusting prices based on monitoring sales and profitability. It allows businesses to test strategies and observe their impact.

A pricing strategy that considers the product's cost and the customer's perception of value. It aims to find a balance between profitability and customer satisfaction.

The potential loss of sales when a product is priced too high, even if it seems financially viable. It highlights the need for customer-centric pricing.

A method of predicting future sales by analyzing the relationship between sales and influencing factors.

A type of regression analysis that uses one independent variable to predict sales.

A type of regression analysis that uses multiple independent variables to predict sales.

A forecasting method used for new products, where actual consumer purchases and reactions to marketing strategies are measured in a sample market.

The potential benefits of sales forecasting include improved control of inventory, staffing, customer information, sales performance tracking, and easier access to financing.

The potential drawbacks of sales forecasting include reliance on both data and estimates, the possibility of inaccurate predictions, and the influence of changing market conditions.