Cost Control – Understanding Pricing

Directions: In this assignment, you will visit 2 different non-franchised food service establishments in your area. Choose a similar item that appears on each menu. Ask the manager/owner of each operation how he/she came up with the cost for the item on the menu.

Some sample questions are:

1. How did you determine the selling price?
2. What internal factors helped you determine the price?
3. What external factors helped you determine the price?
4. How do you track your sales to determine if you are charging enough or too much?

Write a one-page paper comparing the different ways each establishment chose its pricing. End the paper with your opinion on which operation used the best pricing method, and explain why you believe this to be the best method.

In order to receive full credit, you must include a menu from each establishment. This can be a takeout menu or a photo of a physical menu displayed in the restaurant. Please attach and include menus with your written assignment.

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