Menu Pricing Strategies

• Hourly wages are an example of a variable cost.
• Salaries are an example of a fixed cost.
• Gross profit is the money remaining from sales after food and beverage costs are paid.
• A dish that must sell for $4.95 at a food cost percentage of 30%, using the base price method, has a food cost of $1.49.
• Setting menu prices by matching competitors' prices is risky because the menu planner doesn't know the competitor's costs.
• The base price method is a pricing method that will not calculate a sales price.
• $5.01 is not a price that is typically comfortable for customers
• A high-end restaurant can communicate luxury to its customers by pricing a steak at $21.
• A table d'hote menu's sales price is calculated using the entrée cost and Q factor.
• Noncommercial operations, like schools and corporate cafeterias, typically employ the base price method.
• An all-you-can-eat buffet bases its sales price on average food cost per customer.
• The tone of the menu description should match the concept of the business.
• If a dish is listed as "Stir-fried Eggplant over Rice" and all ingredients are part of the recipe, shrimp paste should be listed in the menu description.

Explore menu pricing strategies including fixed vs variable costs, gross profit calculation, and methods like base price. Understand the risks of competitor-based pricing and the importance of aligning menu tone with the restaurant's brand. Learn about table d'hote menus and buffet pricing.