Marketing and Media Channels Essay

Submitted By davidJ1234
Words: 1595
Pages: 7

Performance Indicators 1
Nathan Wortley
Area 1 competition

1. Calculate food costs and determine ways to meet goals

Calculating food costs is an essential part of owning a restaurant. There is many ways to calculate pricing such as cost-plus pricing. You set the price of at your production cost and both cost of goods and fixed costs at your volume, plus a certain profit margin. Another way to calculate prices is Target return pricing. You set your price to achieve a target return on investment. An additional way to calculate pricing is Value base pricing or psychological pricing which both include basing pricing off of how badly your consumer wants or needs your product.

Depending on the goal there is either very many or very few ways to determine it. When you are looking at pricing goals you always want to establish a budget so you know your limits. Sometimes crossing your budget is a necessary risk but you do need to understand what the risks are. A major one is if your investment in crossing the line doesn’t work out it can plunge your profits significantly. Some ways of determining your goal might be to record various steps that you take as you go so you can look at possible highs and lows in your plans. Being able to understand what your goal is is always the first step in determining a way to meet it.

2. Determine menu pricing

Determining menu pricing starts with identifying how much the product is worth. Then you can calculate how much more you’ll need to make a profit. Adding price to a product so you aren’t just breaking even can be difficult. Once you break even on a product deciding how much profit you want decides the final price of the item. Research from your customers can give you data to indicate how much your product is worth to them and how often it is bought. You can make the decision to raise the price of a product if you think customers will still buy it.

When a product is bought often from consumers you may choose to higher the price to make more off the product they enjoy. When a product is struggling you might want to discount it to attract more business to the item.

3. Outline Steps to cure specific problems

With quick serve management there is always problems that will arise. Whether it's with the health code, being over budget or poor promotion you will need to take steps to solve them. When dealing with pricing problems lowering prices will always increase business. If the issue doesn't resolve after that then you look to your promotion department. When business isn't well it will generally lead back to advertisement or quality of you product over your competitors.

If previous steps aren't helping you can always try researching other possible problems. You could also just try asking your customers what you could be doing better. Sometimes it is a simple error that can be solved easily but it may also put a business at risk. At the point when the problem is understood, steps can be taken depending on the problem that was found.

4. Explain key factors in building Clientele

Having a relationship with your customers is very important in a business environment. When customers enjoy coming to your restaurant it increases your profit and chance of them returning. Of you think that you are losing customers you can lower prices and increase promotion to raise awareness of your business and the new prices. Building clientele is statistically the one most important thing for a business. No customer, no profit, it's as simple as that.

5. Demonstrate awareness of capabilities and limitations of the operations

If you understand when your business is doing well it means your ready to take the next step and make it even better. To shows initiative and awareness of your capabilities to you superiors and customers. When you’re on top making smart and entrepreneurial decisions can lead you even higher.

When your business is struggling it…