Question 1

Mr. Pierre Emerick Aubameyang is the owner of PEA Restaurant that had the following menu sales during a period of one week. He needs to find out which menu need to be discarded and which menu that will give his restaurant profits of sales.

Menu Item	Sales	Food Cost	Menu Price
Strip Steak	65	RM7.50	RM20.90
Fried Chicken	30	RM4.90	RM10.75
Lamb Chops	60	RM8.00	RM20.35
Fried Scallops	38	RM6.90	RM21.50
Broiled Haddock	78	RM3.50	RM9.65
Roast Turkey	98	RM6.00	RM18.00
Baked Stuffed Shrimp	65	RM4.70	RM12.50
Veal Marsala	66	RM7.50	RM16.00

1. Prepare a Menu Engineering Worksheet, calculate and show the calculation for the menu mix percentage for each menu item, menu contribution margin for the week and menu food cost percentage for the week.
2. From the findings of PEA restaurant Menu Engineering Worksheet, explain your answer if contribution margin for menu items more significant than food cost percentage when determining restaurant profit.
3. In your opinion, does a large contribution margin for each menu item from PEA restaurant necessarily mean that the restaurant is gaining more profit or not.
4. Explain why or why not a Menu Engineering Worksheet that you prepared will be useful to PEA restaurant management in determining which menu items to delete, raise or lower price, or otherwise change.
5. Help Mr. Pierre on which circumstances might dogs be kept on the menu rather than eliminated.
6. From the category that you have been established from the worksheet, identify what can be done to puzzles to increase menu profitability to help Mr. Pierre to gain more profit.
7. Help Mr. Pierre to explain why all stars not the same from another all-star. Explain why one all-star would be better than another all-star.
8. Describe under what circumstances might Mr. Pierre eliminate a plowhorses from the menu.
9. Discuss the possible positive and negative consequences of substituting different menu items for those with low contribution margins.