HAR 3084: Hotel and Resort Finance and Revenue Management (F2017)
Assignment 1
Individual Assignment
Submitted By:
Aakriti Aneja (C0689962)
Submitted To: Prof. Michael Chen
Submission Date: October 14, 2017
INTRODUCTION: Sweet Mahal serves an authentic Indian cuisine and they also provide catering services in parties and special events. It is famous in traditional homemade curries in greater Toronto area. They are well known for delicious dishes and better hospitality and focus on serving high quality cuisine with warmth and inviting atmosphere. (Sweet Mahal, n.d.)
Q1. Does the menu offer a varied range of entrée choices? Discuss the advantages and disadvantages for …show more content…
• Menu is designed in orderly manner e.g.- Appetizers are listed first then veg and non veg dishes and desserts are listed in end so that customers can find dishes easily.
• Sweet Mahal has listed all types of services provided by them like catering including all size, dine in dine out services on their menu.
Q3.Find the most expensive menu item and its price. Assume the restaurant uses the contribution margin pricing method, and the final selling price is the base selling price. If the required average contribution margin per guest is $2.00, what is the standard food cost of that menu item? Demonstrate the calculation steps.
Ans The most expensive dish on the Sweet Mahal’s menu is Sweet Mahal Grill and Full Chicken which has a cost price of $14.00. As per assumptions of the restaurant contribution margin pricing method and the final selling price as the base selling price, the following steps are calculated. (Sweet Mahal, n.d.)
Selling price: $14.00 (as per the restaurant’s menu)
Food …show more content…
Assume the desired food cost percentage is 40%, how much is the base selling price for that menu item? Demonstrate the calculation steps.
Step 1. As per the Calculation of Ingredients mark-up pricing method
Multiplier = 1 / Desired Food cost percentage
= 1 / 40 % = 2.5%
Assume Standard Food Cost = $ 5.00
Step 2: Calculation of Base selling price
Base selling price= Ingredient Standard cost * Multiplier
= $5*2.5%, Therefore, Base selling price=
Assignment 1
Individual Assignment
Submitted By:
Aakriti Aneja (C0689962)
Submitted To: Prof. Michael Chen
Submission Date: October 14, 2017
INTRODUCTION: Sweet Mahal serves an authentic Indian cuisine and they also provide catering services in parties and special events. It is famous in traditional homemade curries in greater Toronto area. They are well known for delicious dishes and better hospitality and focus on serving high quality cuisine with warmth and inviting atmosphere. (Sweet Mahal, n.d.)
Q1. Does the menu offer a varied range of entrée choices? Discuss the advantages and disadvantages for …show more content…
• Menu is designed in orderly manner e.g.- Appetizers are listed first then veg and non veg dishes and desserts are listed in end so that customers can find dishes easily.
• Sweet Mahal has listed all types of services provided by them like catering including all size, dine in dine out services on their menu.
Q3.Find the most expensive menu item and its price. Assume the restaurant uses the contribution margin pricing method, and the final selling price is the base selling price. If the required average contribution margin per guest is $2.00, what is the standard food cost of that menu item? Demonstrate the calculation steps.
Ans The most expensive dish on the Sweet Mahal’s menu is Sweet Mahal Grill and Full Chicken which has a cost price of $14.00. As per assumptions of the restaurant contribution margin pricing method and the final selling price as the base selling price, the following steps are calculated. (Sweet Mahal, n.d.)
Selling price: $14.00 (as per the restaurant’s menu)
Food …show more content…
Assume the desired food cost percentage is 40%, how much is the base selling price for that menu item? Demonstrate the calculation steps.
Step 1. As per the Calculation of Ingredients mark-up pricing method
Multiplier = 1 / Desired Food cost percentage
= 1 / 40 % = 2.5%
Assume Standard Food Cost = $ 5.00
Step 2: Calculation of Base selling price
Base selling price= Ingredient Standard cost * Multiplier
= $5*2.5%, Therefore, Base selling price=