$28.95- charged for it yesterday!" said Shana, the Dining Room manager at Chez Paul's restaurant. "It's even more than our highest priced steak! that's almost ten dollars more than we on to control costs in both of the house. In this case wasn't sure that her s they would serve that night would be happy with Henri's pricing decision.Th snapper was a very popular item, and that meant tonight lots of customers would the price increase the front and back , ho r, S servers or the customers ry Shanna was discussing the day's dinner menu just delivered to Shanna the daily menu insert On the night's new menu she noticed with Henri, the restaurant's chef. Henri had that her service staff would use that night that the 1. Assume you were a server at Chez Pa price of Huachinango a la Veracruzana (Red Snapper with Spicy Red Sauce), one of the operation's signature dishes, had increased overnight. Yesterday it sold for $19.95. Today on the night this new menu price was initi- ated. How would you respond to a returnin guest who questioned the significant price increase on the snapper item? Henri had priced it at $28.95 2. Assume you were a regular customer at Chez Paul's, and that the snapper was your favorite item. How would you likely respond to the new menu price? If you bought t, would you consider the item to have deliv ered an extra $9.00 of value to your dining experience? Tell me about it," replied Henri, "our seafood supplier really jacked our price on the new shipment. Claimed there was a supply shortage Price went up almost $7.00 per pound. Over 3.00 a portion. Might last for two or three weeks. You know how Mark is. If I don't keep a 36 percent food cost... or less, it could mean my job. With the new cost of snapper, I needed this increase to keep the food cost ratio in line 3. Do you think Henri's new menu price was a direct result of Mark's cost-based pricing philosophy? How would you have advised Henri to respond to the increase in red snapper cost? Shanna knew it was true that Mark, the restaurant's manager, did keep the pressure

1. Assume you were a server at Chez Pauls on the night this new menu price was initiated. How would you respond to a returning guest who questioned the signicant price increase on the snapper item?

2. Assume you were a regular customer at Chez Pauls, and that the snapper was your favorite item. How would you likely respond to the new menu price? If you bought it, would you consider the item to have delivered an extra $9.00 of value to your dining experience?

3. Do you think Henris new menu price was a direct result of Marks cost-based pricing philosophy? How would you have advised Henri to respond to the increase in red snapper cost?

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