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Hospitals set menu prices for their employee and visitor cafeterias but may try to keep prices low as a sort of employee benefit.
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Colleges and universities may offer “all you can eat” dining options and set the price at least for a full semester, if not the entire academic year. K-12 typically sets a meal price at the beginning of the school year and sticks with it all year. Many onsite segments of the industry also have to price a part or all of their menu offerings, with various considerations. Think about how all of these factors affect the setting of menu prices. We will further explore some of these issues in the discussion about menu analysis. Portions sizes, product quality, and the menu mix are also factors to consider. Prices usually vary, even for the same menu item, during different meal periods with lunch typically less expensive than dinner. Think about the difference in the price of just a bottle of water in a restaurant, a vending machine, or a sporting venue! Prices in the airport are usually higher even for the exact same food from a chain restaurant. The location also affects what customers are willing to pay. dinner with a show or a table in the kitchen.) It’s all about the price/value relationship for each individual customer. rotating restaurant with a view of the city), or a special experience (i.e. fine dining, cooking at the table), ambiance (i.e. food that is delivered), superb service (i.e. Customers are typically willing to pay more for a menu item if there are other “added value” features such as convenience (i.e. What do they consider a good value? We know the restaurant business is not just about the food, but also the service, the experience, the ambiance. Obviously we have to consider our costs, since we are in business to make money (or at least meet our budget or breakeven in the case of some onsite segments.) We have to consider our customers. There are a multitude of factors to consider, many of which we’ve discussed in previous chapters.
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Once the total cost and portion cost of a recipe has been established, it’s time to set prices for the menu. Describe the purpose and use of special pricing situations – bundling, coupons, and value pricing.Pricing an “all you can eat” menu, such as a buffet or salad bar.Calculate “base” or minimum selling price for menu items.Explain purpose and process of using a blended pricing strategy.Explain importance of the price/value relationship.Describe factors to consider when pricing menu items.Using food cost percentage to set a menu price.This chapter is remixed from Basic Kitchen and Food Service Management by The BC Cook Articulation Committee.