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2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 1

1. Restaurant chains that modify work schedules to reasonably accommodate the needs of all employees are complying with the requirements of the

A. Americans with Disabilities Act. C. Civil Rights Act of 1991.B. Equal Employment Opportunity Act. D. Occupational Safety and Health Act.

2. Marsha wants to invest her savings in a restaurant. However, she wants to protect all of her personal assets. Which type of business ownership would be most appropriate for Marsha?

A. Partnership C. Corporation B. Franchise D. Sole proprietorship

3. What do restaurants need to do to avoid being fined or temporarily shut down by government agencies?A. Offer quality table service C. Purchase expensive ingredients B. Comply with health codes D. Hire trained employees

4. Efficient inventory control can keep a restaurant supply business from having too much of its __________ tied up in stock.

A. capital C. sales volume B. accounts receivable D. utility

5. Which of the following makes it possible for a restaurant supply company's drivers to determine their exact location and obtain accurate directions to destinations:

A. Cellular telephone system C. Global positioning system B. Video frequency technology D. Image scanning technology

6. One reason why reverse distribution systems are considered to be ethical is because theyA. are politically correct. C. address environmental concerns.B. adhere to the letter of the law. D. are cost efficient to implement.

7. Which of the following is a true statement about channel-member relationships in the supply chain:A. Technological advancements have made interaction among channel members unnecessary. B. Because the producers are the channel leaders, they usually have more negotiating power. C. Members can often reduce conflict by focusing on the common goal of customer satisfaction. D. To minimize horizontal conflict, most wholesalers in the supply chain charge slotting fees.

8. Before a restaurant chain can effectively evaluate members in its distribution channel, it must firstA. assess its logistics needs. C. identify potential vendors.B. conduct a location feasibility study. D. develop a strategic alliance.

9. When writing a proposal for a full-service restaurant, it is usually important to include aA. current bibliography. C. plan of action. B. list of charts. D. policy statement.

10. Which of the following is a reason for a full-service restaurant to conduct regular staff meetings:A. To handle disciplinary problems C. To orient new employees B. To allow employees to ask questions D. To give employees time to relax from work

11. Restaurant supply salespeople who are well informed about the brands, sizes, and styles of goods that the business offers can easily answer which of the following customer questions:

A. What merchandise is carried by the business?B. What is the business's return policy?C. What type of credit does the business offer?D. What hours is the business open?

12. A restaurant supply business establishes a policy that it "will not be undersold" in order toA. maintain high inventory levels. C. offer a wide variety of goods.B. compete with similar businesses. D. employ a large sales force.

Students ‘Demonstrating Excellence Celebrating Achievement’ since 1979

2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 213. Which of the following must be kept in refrigerated storage:

A. Soft drinks C. PotatoesB. Bread D. Milk

14. Which of the following is a method that many restaurant suppliers use to ship products:A. Internal waterways C. Package cars B. Common carriers D. Private couriers

15. In order to maintain inventory levels, restaurants need to know which food items are in inventory as well as the

A. length of time in inventory. C. channel of distribution. B. inventory storage method. D. name of the main supplier.

16. What requisition procedure is a restaurant following if it negotiates long-term prices for certain food items with a vendor that delivers the items at set times?

A. Competitive bid C. Blank checkB. Standing order D. Price quotation

17. How do producers answer the economic question of what to produce?A. By developing incentives C. By buying more resourcesB. By comparing relative prices D. By rationing goods and services

18. One major way restaurant businesses, in general, show their social responsibility is byA. contributing to public interests. C. paying taxes to the federal government.B. providing educational scholarships. D. supporting environmental protection efforts.

19. Restaurant supply businesses can protect themselves from the risk associated with lost shipments byA. training receiving personnel. C. purchasing transportation insurance. B. inspecting shipments of goods. D. selecting resale items carefully.

20. Antonio works at a food-processing plant and is responsible for sorting apples by size. His coworker is responsible for cleaning the apples that Antonio sorts. The apples are then sent to another worker to be inspected. These jobs are examples of specialization by

A. trade. C. task.B. stage of production. D. profession.

21. Restaurant chains often build teams to solve problems, which involves giving __________ to the team.A. authority C. insight B. compensation D. leadership

22. The restaurant chain manager takes time during a staff meeting to recognize Paul's efforts to finish a big project on time. How is this recognition likely to affect Paul?

A. Increased morale C. Higher commissions B. Lower motivation D. Decreased self-esteem

23. Developing political relationships within a food service organization often involvesA. agreeing with others at meetings. C. doing favors for others. B. following the rules. D. negotiating for responsibility.

24. The purpose of handing out menus to customers who are on the waiting list is toA. stimulate their appetites.B. reassure them that they will eventually get a table.C. make them think that the dining experience has begun. D. distract them from noticing the order in which people are being seated.


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 325. What is the main reason that restaurants need financing?

A. To cash checks C. To obtain fundsB. To pay interest D. To save money

26. A characteristic of the accrual method of accounting is that itA. is the method used by businesses that don't offer credit.B. is the method most frequently used by small businesses.C. records credit purchases when the purchases are made.D. records transactions at the time the money changes hands.

27. Calculate a small full-service restaurant's monthly cash payments if it has rent of $600, utility costs of $150, salaries of $2,400, cost of goods sold of $4,750, miscellaneous expenses of $550, and inventory worth $1,200.

A. $8,450 C. $9,250B. $8,150 D. $9,650

28. A restaurant supply company prepares an invoice for Gino's Italian Restaurant, which has purchased the following: two coffee urns at $35.50 each and three stainless steel pans at $22.75 each. If shipping costs are $11.60, what is the total amount of the invoice?

A. $159.40 C. $168.25B. $150.85 D. $171.00

29. Michaela's Fine Dining Restaurant has $375,900,000 in total assets, $255,700,000 in total liabilities, and $7,500,800 in total inventory. Calculate the debt-to-assets ratio for Michaela's Fine Dining Restaurant.

A. 0.68 C. 1.44 B. 1.47 D. 0.67

30. A restaurant's net sales for the year were $990,000, cost of goods sold was $650,000, and total operating expenses were $320,000. Determine the amount of the restaurant's net profit or loss.

A. $660,000 (loss) C. $20,000 (profit) B. $20,000 (loss) D. $1,320,000 (profit)

31. When a supervisor notifies restaurant employees that their performance is below standard and their jobs are in jeopardy, the supervisor should

A. put the notice in writing. C. give verbal notification only.B. e-mail the employees. D. post the notice on the bulletin board.

32. Why should you encourage questions during a job orientation?A. To make new employees feel productive from the beginning B. To determine what points need clarification C. To help new employees remember key pointsD. To prove that new employees have been made aware of policies and procedures

33. Who is responsible for implementing the equity laws that apply to a restaurant?A. The government C. The courtsB. The management D. The employees

34. Which of the following is generally considered a fringe benefit:A. Employee ratings C. Salary B. Quota plan D. Health insurance

35. One reason why a full-service restaurant might gather marketing information is toA. manipulate data. C. remain competitive.B. control customers. D. eliminate risks.


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 436. A large restaurant supply corporation wants to gather information on its biggest competitor's product

development plans. Should the corporation advertise and hold interviews for nonexistent jobs in order to get information from the competitor's employees?

A. Yes, any method of gathering information is fair.B. No, this strategy for gathering information is unethical.C. No, the competitor's employees probably have no useful information.D. Yes, employees would share information if they thought they would be hired.

37. To determine marketing-information needs, restaurant owners often conduct a __________ analysis.A. primary C. secondaryB. relative D. situational

38. What type of marketing-information management system might a full-service restaurant develop specifically for analyzing or comparing numerical data?

A. Internal C. Statistical B. Interactive D. Simulated

39. One way that restaurants forecast the number of servings of menu items needed each day is to determine the

A. edible portion of ingredients. C. yield from each recipe. B. average ordered in the past. D. weight of cartons on order.

40. For both the customer and the seller, striking the right pricing balance makes the exchangeA. manageable. C. beneficial. B. painful. D. disappointing.

41. Which of the following marketing functions would measure consumer response to a new product:A. Distribution C. PurchasingB. Marketing-information management D. Selling

42. When a restaurant chain is planning to enter the international market, the trade barriers that countries establish often have an impact on the restaurant chain's

A. distribution methods. C. pricing strategies. B. selling techniques. D. promotional activities.

43. Ed's Family Restaurant mailed discount coupons to all the people who moved into the area during the past year. The company has targeted a market based on

A. psychographics. C. economics.B. geographics. D. demographics.

44. When identifying a target market, restaurants often create a record of information such as age, income level, ethnic background, occupation, and attitudes, which is known as a

A. preference list. C. customer profile.B. demographic breakdown. D. consumer composite.

45. An important part of a restaurant's overall business plan is the __________ plan.A. marketing C. emergency B. credit D. training

46. A restaurant supply business considers segment size, product demand, and potential profitability when it conducts a

A. trend study. C. technology evaluation. B. market analysis. D. strategic assessment.


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 547. What is a potential strength a full-service restaurant owner might identify in a SWOT analysis?

A. New foreign markets C. Large inventoriesB. Market leadership D. Market saturation

48. The restaurant supply company projected that its sales would increase significantly over the next few years, and it decided to

A. borrow operating funds. C. lower inventory levels. B. raise its prices. D. hire more workers.

49. Which of the following is an example of a full-service restaurant analyzing information in order to set a marketing budget:

A. Estimating the cost of ingredients and supplies B. Reviewing qualifications of various employees C. Studying current profit and loss statements D. Comparing advertising agency presentations

50. What do many restaurants analyze to determine if their marketing efforts are effectively reaching their target market?

A. Procurement process C. Customer satisfaction B. Exclusive distribution D. Vertical integration

51. When conducting a marketing audit, a full-service restaurant must answer which of the following questions relating to its marketing strategies:

A. What pricing approach is appropriate? C. Who conducts marketing research? B. Are there enough resources? D. How accurate are the marketing reports?

52. How has the use of handheld computers impacted the food and beverage industry?A. Customers can play computer games while they wait for a table. B. Customers' credit-card payments are faster to process.C. Servers have more time to interact with customers.D. There is a greater need for face-to-face interaction between cooks and servers.

53. One method a restaurant-supply business can use to prevent theft by employees and customers is toA. establish a floor limit. C. hire security guards. B. purchase liability insurance. D. take frequent inventories.

54. Effective project planning is important because it often helps a restaurant supply company toA. buy supplies. C. control costs. B. train employees. D. keep records.

55. A restaurant that places orders after reviewing written quotes provided by several suppliers is using the __________ buying method.

A. competitive-bid C. lowest-priceB. blank-check D. standard-markup

56. Restaurant employees can help the restaurant control expenses byA. answering the telephone courteously. C. refusing to accept gratuities. B. taking patrons' orders accurately. D. extending their shifts to include overtime.

57. If a restaurant currently leases 2,250 square feet of space at $1.75 per square foot per month and will pay 4% more next year, what amount will the restaurant pay in rent next year?

A. $49,475 C. $47,250 B. $47,715 D. $49,140


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 658. There is $241.49 in the restaurant's cash register at the end of the day. Of this amount, $191.49 was for

cash sales. The amount of money in the drawer at the beginning of the day wasA. $191.49. C. $100.50. B. $40.00. D. $50.00.

59. One reason why some restaurant servers disclose the amount of their tips to the restaurant is because they

A. are not required to pay taxes. C. want an increase in wages. B. share tips with coworkers. D. expect to receive promotions.

60. Full-service restaurant employees often can be helpful during a robbery situation if they areA. conscientious. C. friendly. B. sensitive. D. observant.

61. Which of the following is a recommended method of cleaning floors in restaurants:A. Washing by hand C. Dry dustingB. Wet mopping D. Sweeping with a broom

62. Restaurants develop specific procedures for cooking and storing food and for cleaning food-processing equipment in order to

A. eliminate safety hazards. C. prevent sanitation problems. B. regulate personal hygiene. D. reduce operating expenses.

63. An efficient way to organize a work area is toA. avoid using filing cabinets. C. remove all materials from the work surface.B. arrange everything within easy reach. D. keep reference materials out of your office.

64. What type of information may be listed in the work experience section of a resume, if the person has had only a few paying jobs?

A. Career objectives C. Volunteer positions B. Technical training D. Personal references

65. Trade publications are used by full-service restaurant personnel for which of the following reasons:A. To obtain up-to-date information C. To set up an operating budgetB. To determine quantities to buy D. To appeal to the general public

66. Under bad economic conditions, what must restaurant suppliers be willing to do to attract customers?A. Increase inventory C. Adjust pricesB. Remodel facilities D. Improve parking

67. One way that computer technology impacts the pricing function is by making it possible for businesses toA. adjust their prices over time. C. generate purchase orders. B. post their prices online. D. pay invoices electronically.

68. Factors that affect the final cost of a product to a restaurant are price allowances given by vendors and manufacturers known as

A. EOM. C. discounts.B. advance terms. D. FO.

69. Which of the following questions do restaurant supply businesses ask when they evaluate the feasibility of a product idea:

A. Does this product satisfy the company's needs? B. How can we come up with innovative ideas for more products? C. Do we have access to the resources to make this product? D. Will vendors buy or use the product if it is available?


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 770. The Food, Drug, and Cosmetic Act is a federal statute intended to assure consumers that the products

they buy will be safe, which means that the products areA. pure and meet certain standards. C. covered by a written warranty.B. free from fear and danger. D. manufactured by professionals.

71. A restaurant supply company wants to evaluate its customers' experiences with the company and its products by asking them to complete a questionnaire. When formatting the questionnaire, the company should

A. use a simple sentence structure that asks for general information. B. write the questions so that most of them are open-ended. C. include specific questions about operational components. D. require contact information, such as name and telephone number.

72. A restaurant supply company that wants to attract a different market segment by offering products that are similar to its core product line should consider a

A. shallow-variation mix. C. product-mix extension. B. product-line deletion. D. wide-retention strategy.

73. A restaurant is extending its operating hours to accommodate its customers. Which of the following is a business cost associated with this service:

A. Increased sales volume C. Higher profit margins B. Higher payroll expenses D. Increased customer satisfaction

74. One reason why many restaurants flag certain menu items with some type of a healthy heart symbol is to indicate that the items

A. are approved by food organizations. C. meet specific nutrition standards.B. contain only quality ingredients. D. provide a day's supply of vitamins.

75. A restaurant supply business that positions its products as the ones offering the best quality and service for the price might gain a

A. geographic benefit. C. competitive advantage. B. promotional consideration. D. marketing incentive.

76. Full-service restaurants benefit from repeat sales to customers who have brandA. resistance. C. loyalty. B. experience. D. objections.

77. Which of the following statements is an example of a business that developed a positioning strategy by emphasizing product benefits:

A. To dine in a luxurious, elegant atmosphere is to visit the Premier Gourmet Restaurant. B. Unlike other items in the marketplace, Major Foods does not test its products on animals.C. If you are short on cash and need legal help, call Wilson Law Offices at 1-800-ABC-LAWS. D. For optimal speed and cutting-edge security, try Lightning-Fast Internet Services, Inc.

78. What is the formula for calculating planned gross margin?A. Retail price minus cost C. Net sales minus cost of goods sold B. Net sales minus operating expenses D. Purchases minus reductions

79. Why do many restaurants select items to add to the menu based on what they will need to charge for those items?

A. To provide a fun experience C. To maintain a consistent imageB. To follow an established theme D. To negotiate a low purchase price

80. Which of the following factors would encourage a family with children to dine at a particular restaurant:A. Small-quantity orders C. Large, straight chairsB. Crowded dining area D. Linen napkins and tablecloths


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 881. When planning the quantity of prime rib to order to prepare a certain number of dinners, a restaurant

should consider theA. volume discount. C. nutrition value.B. cooking time. D. yield percentage.

82. What do restaurants consider when ordering the quantity of food products to prepare menu items?A. Servings needed C. Vendor pricesB. Buying methods D. Nutritional standards

83. The end result of promotion is that information about goods, services, images, and/or ideas will beA. researched. C. organized.B. communicated. D. gathered.

84. Gabrielle saw two different beverage advertisements—one for the orange juice industry and one for the grape juice industry. Each was trying to persuade her to purchase its type of beverage. This is an example of

A. institutional promotion. C. corporate promotion. B. primary product promotion. D. secondary product promotion.

85. Technology advancements have provided restaurant marketers the ability to send cost-effective, opt-in promotional messages to a customer's __________ address.

A. secondary C. P.O. boxB. street D. e-mail

86. The advertising coordinator at Mark's Steakhouse wanted to use Jenna, a frequent customer, in his next print advertisement. What type of approach would be used by stating Jenna's personal experience with the steakhouse in the copy of the print advertisement?

A. Comparisons C. Features B. Endorsement D. Testimonial

87. What do many restaurants develop and publicize as a way to promote the restaurant and increase sales?A. Special event dinners C. Fresh produce displaysB. Attractive interior signs D. Unique table arrangements

88. Which of the following is an example of a free promotional activity that should be coordinated with a restaurant's other promotional efforts:

A. Selling C. ResearchB. Advertising D. Publicity

89. One way that a restaurant supply salesperson can provide quality service and develop successful relationships with full-service restaurants is by

A. making frequent unannounced sales visits. C. working with key people in the organization.B. concentrating on making idle conversation. D. criticizing products offered by competitors.

90. Terms-of-sale selling policies cover such conditions of the sale asA. credit, delivery, and discounts. C. discounts, guarantees, and returns.B. installation and maintenance. D. entertaining the customer and prospecting.

91. What technological tool do many restaurant supply salespeople use to demonstrate to customers various types of products that are large or difficult to illustrate?

A. Word-processing software C. Database management filesB. Geographic mapping systems D. Computer-based presentations


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 992. A restaurant supply salesperson can learn valuable information about how to demonstrate and promote

company products from the company'sA. prospective customers. C. carriers. B. experienced salespeople. D. stockholders.

93. One reason why it is important for restaurant supply salespeople to point out certain benefits, though these benefits are obvious, is to prove

A. that the business sells quality items. C. the cost of the product is equal to its worth. B. that the salesperson is knowledgeable. D. the value of the product to customers.

94. When restaurant guests are given an opportunity to study the menu before a server comes to take their order, which characteristic of a good sales approach is being applied:

A. Properly timed C. EnthusiasticB. Respectful and courteous D. Sincere and friendly

95. A restaurant supply salesperson offering a free premium with a specific purchase is an example ofA. using a bonus close. C. closing on an objection.B. using a choice close. D. closing on a minor point.

96. What is an advantage to full-service restaurants of taking guest reservations?A. Increases table turnover rates B. Allows more time for the chef to prepare entrees C. Helps management plan staffing needs D. Provides servers with information about no-shows

97. When seating guests at a restaurant, it is important toA. seat guests according to the servers' preference. B. give priority to wealthy guests. C. provide the best available table. D. give priority to non-smokers.

98. Which of the following is correct table-service procedure:A. Reaching across the table to serve C. Serving beverages from the patron's leftB. Serving food from the patron's left D. Putting side dishes to the patron's right

99. Which of the following situations relates to anticipating customers' needs during the dining experience:A. Refill the customers' water glasses and soft drink orders without being asked. B. After serving the meal, wait five minutes before presenting the customers with their checks. C. Seat customers immediately upon arrival at a table that needs to be cleared and set. D. To give customers time to review the menu, wait 10 minutes before taking drink orders.

100. The income that a restaurant supply business earns before expenses are deducted is referred to as theA. overhead. C. net profit.B. net sales. D. gross profit.


2009 DECA Ontario Provincials Competition RFSMTest 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT 10

1. AAmericans with Disabilities Act. This act protects workers with physical and/or mental disabilities from discrimination. The law also states that restaurant chains must make reasonable accommodations for disabled workers unless that puts an undue burden on the business. Reasonable accommodation involves making adjustments so that qualified individuals can perform the necessary job activities. For example, reasonable accommodation might include modifying work schedules so disabled employees could arrive and depart at different times if they relied on special bus service to transport them to work. There is an Equal Employment Opportunity Commission but not an Equal Employment Opportunity Act. The Civil Rights Act of 1991 expanded previous civil rights legislation by allowing employees who feel they have been the victims of discrimination to sue their employers. The Occupational Safety and Health Act stipulates that workers may not be disciplined or discharged for refusing to work in unsafe environments or because they report an alleged violation to the appropriate government agency.SOURCE: BL:008SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 48-49]. Upper Saddle River,

NJ: Prentice Hall.

2. CCorporation. A corporation is a form of ownership owned by stockholders who have purchased stock. The liability of each owner is limited to the amount invested. A franchise is an agreement between a parent company and a franchisee to distribute goods and services. A partnership is a form of business ownership owned by two or more persons. A sole proprietorship is a form of business ownership in which the business is owned by one person.SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way

3. BComply with health codes. Most local governments require restaurants to follow health codes in order to prevent widespread illness that might result from product contamination or unsafe food storage and preparation methods. Government agencies have the authority to inspect restaurants to make sure they are in compliance with these health codes. If restaurants do not comply, they face the possibility of being fined or temporarily shut down until they correct the problems and comply with the health codes. Restaurants do not need to offer quality table service, purchase expensive ingredients, or hire trained employees to avoid being fined or temporarily shut down by government agencies. SOURCE: BL:049SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 262-268]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

4. ACapital. Restaurant supply companies cannot afford to invest in too much stock or too little. If too much stock is on hand, storage costs add to the cost of the goods, and goods that are held too long may become outdated or stale. If too little stock is on hand, customers' needs cannot be met. Sales volume is the amount of a business's sales—usually expressed in dollars. A business needs to maintain adequate stock to satisfy its volume of sales. Accounts receivable are the monies owed to a business by its customers. Distribution provides products with time and place utility.SOURCE: CM:001SOURCE: Clark, B., Sobel, J., & Basteri C.G. (2006). Marketing dynamics (pp. 292, 355-361). Tinley

Park, IL: Goodheart-Willcox.


Test 1009 RESTAURANT AND FOOD SERVICE MANAGEMENT—KEY 11

5. CGlobal positioning system. Global positioning systems installed in delivery vehicles make it possible for drivers to determine their exact location and obtain accurate directions to destinations. Global positioning systems are the result of satellite technology which allows restaurant supply companies to track a vehicle. These systems also enable drivers to obtain directions so they do not waste time searching for their destinations. The systems speed up the delivery process. Video frequency technology, cellular telephone system, and image scanning technology do not make it possible for a restaurant supply company's drivers to determine their exact location and obtain accurate directions to destinations.SOURCE: CM:004SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:

A supply chain perspective (7th ed.) [pp. 464-465]. Mason, OH: South-Western.

6. CAddress environmental concerns. Reverse distribution has grown in importance because of environmental concerns. This process allows businesses to retrieve capital goods, such as automobiles and refrigerators, in order to reuse them, recycle them, or dispose of them. Reverse distribution reduces the amount of waste that returns to the environment. It is considered ethical because it helps to save natural resources. These practices are expensive rather than cost efficient. Reverse distribution is not required by law nor is it a political issue at the moment.SOURCE: CM:006SOURCE: Czinkota, M.R., & Kotabe, M. (2001). Marketing management (2nd ed.) [p. 365]. Mason, OH:

South-Western Publishing.

7. CMembers can often reduce conflict by focusing on the common goal of customer satisfaction. Channel members are all of the businesses or individuals that move goods and services from the producer to the end user. The channel members depend on each other to make sure the end users receive the products when they need them and where they need them. Therefore, it is important for all channel members to remember that their common goal is customer satisfaction, especially when one or more of them disagree about a course of action that another channel member wants to take. Producers are not always channel leaders, nor do they necessarily have more negotiating power. Because the channel members are interdependent, interaction among the members is necessary. Slotting fees may cause a channel conflict rather than reduce it.SOURCE: CM:008SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 398-401]. Boston:

McGraw-Hill/Irwin.

8. AAssess its logistics needs. As a restaurant chain grows and changes, its needs and objectives often change, too. Before a chain can determine if channel members meet its needs, it must first determine its own needs. By assessing logistics needs, such as customer requirements, industry trends, environmental issues, technological developments, and current distribution inefficiencies, it can establish criteria to evaluate channel-member performance levels. Identification of potential vendors and the development of a strategic alliance are factors that are considered after the logistics needs assessment is complete. A location feasibility study is conducted when a chain wants to evaluate property for business operations.SOURCE: CM:011SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:

A supply chain perspective (7th ed.) [p. 421]. Mason, OH: South-Western.

9. CPlan of action. A proposal is often written to provide solutions to a specific business problem. After describing the problem, the report should include a plan of action that describes the action that should be taken. The goal of the proposal is to explain what the full-service restaurant should do to solve the problem. It is not necessary for a proposal to include a list of charts, a current bibliography, or a policy statement.SOURCE: CO:062SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 368-369].

Boston: Irwin/McGraw-Hill.



10. BTo allow employees to ask questions. Presenting important information at a meeting gives employees the opportunity to ask questions about any points that are not clear. This is an advantage of oral rather than written communication. Disciplinary problems are personal and should be handled privately. New employees need to be oriented at the time they begin work, and staff meeting time should not be used for this purpose or to give employees a work break.SOURCE: CO:140SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management

(8th ed.) [pp. 315-316]. Cincinnati: South-Western College Publishing.

11. AWhat merchandise is carried by the business? In order to handle customer inquiries competently, employees should know the characteristics of the products carried by their businesses. Information pertaining to the times that a business is available to customers answers the question of what hours the business is open. Knowledge of financial instruments, other than cash, that the business accepts as payment for purchases answers the question of what type of credit the business offers. Information regarding established guidelines for the return or exchange of merchandise answers questions about the business's return policy.SOURCE: CR:006SOURCE: Greene, C. (2000). Selling: Business 2000 (p. 131). Mason, OH: South-Western.

12. BCompete with similar businesses. Restaurant supply businesses develop price policies to compete with other similar businesses and to attract customers. Businesses that advertise that they will not be undersold are using flexible pricing to match or beat the prices of competitors. Maintaining high inventory levels, employing a large sales force, or offering a wide variety of goods are not purposes of the pricing policy of not being undersold.SOURCE: CR:007SOURCE: Rue, L. W., & Byars, L. L. (2006). Business management: Real-world applications and

connections (pp. 241-242). Woodland Hills, CA: Glencoe/McGraw Hill.

13. DMilk. Milk spoils easily, and it will not be safe to consume unless it is kept cold. Bread and potatoes can be kept in a dry storage area for a short period of time without being damaged. Soft drinks do not need to be refrigerated.SOURCE: DS:013SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[pp. 220-221]. Upper Saddle River, NJ: Prentice Hall.

14. BCommon carriers. Common carriers provide transportation services to any restaurant supplier that is willing to pay the fee. This type of trucking service handles all types of goods, from small items to large pieces of equipment. It is ideal for restaurant suppliers that may need to ship only a few items. Package cars are a type of rail transportation that may be impractical for many restaurant suppliers. Most restaurant suppliers do not use water transportation. Private couriers are expensive and would be used as a last resort.SOURCE: DS:057SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 395].

Woodland Hills, CA: Glencoe/McGraw-Hill.



15. ALength of time in inventory. In order to maintain adequate inventory levels, restaurants need to know not only which food items are in inventory, but also their length of time in inventory. Many food items are perishable and spoil after a certain period of time. Restaurants need to keep track of this information in order to have sufficient quantities of those items on hand. Restaurants do not need to know the inventory storage method, channel of distribution, or the name of the main supplier in order to maintain inventory levels.SOURCE: DS:023SOURCE: Spears, M.C., & Gregoire, M.B. (2004). Foodservice organizations: A managerial and

systems approach (5th ed.) [pp. 169-174]. Upper Saddle River, NJ: Prentice Hall.

16. BStanding order. The standing-order requisition method involves a restaurant's negotiating prices for certain food items with a specific vendor. These prices usually are established for a long period of time, such as six months to a year. The restaurant and the vendor also decide on the quantity that will be purchased at one time and when these items will be delivered. Then, the vendor delivers the specified items on those days without being contacted by the restaurant. For example, the restaurant might have a standing order for six cases of tomato juice to be delivered once a week. Competitive bidding involves several vendors submitting prices for various items. A blank check gives certain vendors the right to deliver items without quoting a price. Price quotation involves obtaining prices from all vendors.SOURCE: DS:067SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[p. 213]. Upper Saddle River, NJ: Prentice Hall.

17. BBy comparing relative prices. Relative prices refer to one price compared to another, that is, to the ratio between them. Producers answer the question of what to produce by comparing relative prices. For example, a farmer might decide to switch from hogs to beef cattle, if it would be more profitable to produce beef. Producers do not answer the question of what to produce by rationing goods and services, buying more resources, or developing incentives.SOURCE: EC:006SOURCE: EC LAP 12—Price

18. AContributing to public interests. Social responsibility is the duty of restaurants to contribute to the well-being of society. Contributing to public interests is one major way a restaurant can exhibit social responsibility. Providing educational support and supporting environmental protection efforts are ways some restaurants create goodwill and foster a positive image of the company. Paying taxes is an obligation, not a choice.SOURCE: EC:070SOURCE: EC LAP 20—Business Connections (Business and Society)

19. CPurchasing transportation insurance. A restaurant supply business can buy transportation insurance to cover the risk of loss or damage while goods are in transit or being stored. Selecting resale items carefully helps to protect the restaurant supply business from economic risks such as changes in customer demand. Training receiving personnel and inspecting shipments of goods can help prevent losses after shipments have been delivered.SOURCE: EC:011SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)



20. CTask. Antonio and his coworkers each do a small part of the total job; therefore, this is classified as specialization by task. Specialization by trade or profession involves classifying people according to the type of work they perform in order to earn a living, such as technical, clerical, or agricultural. Specialization by stage of production is when more than one stage of production is needed to change a raw material into a finished product.SOURCE: EC:014SOURCE: EC LAP 7—Specialization of Labor

21. AAuthority. Authority is the power to influence or control the opinions or behavior of others. If restaurant chains build teams to solve problems, the team often has the authority not only to find a solution but to implement it. Chains realize that it may be pointless to build a team and give it the mission of solving a problem if the team does not have the authority to put the solution into effect. Also, teams often have the authority to ask for additional information or resources to complete their task, or to spend money if necessary. Compensation is wages or salary. Insight is the "aha" moment when an answer comes to you. Leadership is the ability to guide or direct the actions of others in a desired manner.SOURCE: EI:044SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management

(8th ed.) [pp. 510-512]. Cincinnati: South-Western College Publishing.

22. AIncreased morale. Morale is the state of a person's attitude or outlook on life that affects his/her approach to work. When the restaurant chain manager publicly acknowledges Paul's accomplishment, Paul most likely feels good about himself, which reinforces or increases his self-esteem. The recognition might also motivate Paul to perform future job-related activities to the best of his ability. A commission is a percentage of the total sale amount paid to the individual or business that makes a sale. Recognition does not always increase commission payments.SOURCE: EI:014SOURCE: QS LAP 13—Gimme Five!

23. CDoing favors for others. Developing political relationships within a food service organization often involves doing favors for others. The people doing favors for others usually expect others to reciprocate when they need something. Therefore, an advantage of developing strong political relationships is that people have others they can count on to help them or do favors for them when needed. They just need to remember that they will be expected to reciprocate and return the favor. Developing political relationships within a food service organization does not necessarily involve following the rules, agreeing with others at meetings, or negotiating for responsibility.SOURCE: EI:034SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development

(2nd ed.) [p. 279]. Mason, OH: South-Western.

24. CMake them think that the dining experience has begun. Some restaurants hand out menus to customers on the waiting list because looking at the menu and deciding what to order is part of the dining experience. Because customers feel as if they are being served, their wait does not seem so long. Customers don't need to look over a menu to know that eventually they will get a table. People go out to eat because they are hungry; they don't need their appetites to be stimulated. The order in which people are being seated should not matter if the restaurant is using a fair seating system. Besides, just because a person has a menu in hand does not mean that s/he won't be observant of activities going on in the restaurant.SOURCE: EI:054SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)




25. CTo obtain funds. Financing is a marketing function that determines the need for and availability of financial resources to aid in marketing activities. Restaurants need financing to obtain funds to operate, which includes buying goods for resale and pricing, promoting, and distributing those goods. Restaurants may obtain funds by borrowing from financial institutions or individuals, selling stock in the company, or relying on the assets of owners. Many restaurants do not have enough cash on hand at any one time to cover all expenses and rely on financing to obtain funds to operate. Restaurants do not need financing to save money, pay interest, or cash checks.SOURCE: FI:001SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal

finance (pp. 550-551). New York: Glencoe/McGraw-Hill.

26. CRecords credit purchases when the purchases are made. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. This method, therefore, keeps the business up-to-date on the amount of sales rather than on the amount of cash received. The cash accounting method records both income and expenditures at the time the money changes hands. It is the method most frequently used by small businesses, especially those that don't offer credit.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

27. A$8,450. A small full-service restaurant's monthly cash payments include all the money that it spends—its expenses. To calculate cash payments, add the various expenses for rent, utilities, salaries, cost of goods sold, and miscellaneous expenses ($600 + $150 + $2,400 + $4,750 + $550 = $8,450). The value of the current inventory is not included in monthly cash payments.SOURCE: FI:092SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [pp. 366-367]. New York: Glencoe/McGraw-Hill.

28. B$150.85. In order to prepare the invoice, the restaurant supply business first needs to calculate the extensions. In this case, the customer (Gino's Italian Restaurant) purchased two items at $35.50 each, which totaled $71.00 and three items at $22.75 each, which totaled $68.25 ($35.50 x 2 = $71.00; $22.75 x 3 = $68.25). Then, the restaurant supply business adds the totals of each extension plus the shipping charges of $11.60 to determine the total invoice amount ($71.00 + $68.25 + $11.60 = $150.85).SOURCE: FI:087SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 71-73).

Cincinnati: South-Western Educational.

29. A0.68. Michaela's Fine Dining Restaurant has a debt-to-assets ratio of 0.68. The formula for this calculation is Debt-to-Assets Ratio = Total Liabilities ÷ Total Assets. To calculate the ratio, divide $255,700,000 by $375,900,000 ($255,700,000 ÷ $375,900,000 = 0.68). The value of total inventory is not part of the calculation.SOURCE: FI:097SOURCE: Dahl, D., & Hirsch, C. (2004, October). Spot trouble in your financials. Inc., 26 (10), p. 96.

30. C$20,000 (profit). To determine the amount of the profit or loss, the cost of goods sold and total expenses must be subtracted from net sales. In this example, subtract those amounts from net sales ($990,000 - $650,000 = $340,000 - $320,000 = $20,000 profit). A profit resulted because sales were greater than expenses.SOURCE: FI:102SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 234-237).

South-Western Educational Publishing.



31. APut the notice in writing. Putting the notice in writing provides documentation that the restaurant employee has been given notice if termination becomes necessary. The written notice serves as a warning and gives employees an opportunity to improve. E-mail notification would not provide a permanent written record and may violate confidentiality. Giving verbal notification only would not provide a record in case of termination. Posting the notice on the bulletin board would violate employee confidentiality.SOURCE: HR:358SOURCE: Jackson, S., & Schuler, R. (2003). Managing human resources through strategic

partnerships (8th ed.) [pp. 460-461, 486-487]. Cincinnati: Thomson/South-Western.

32. BTo determine what points need clarification. When employees ask questions, they are telling you how much they have understood and what points need clarification and elaboration. Welcome questions. To help new employees remember key points, you should repeat the points several times. To prove that new employees have been made aware of policies and procedures, you should ask the employees to sign the orientation checklist. To make employees feel productive from the beginning, give them meaningful tasks.SOURCE: HR:361SOURCE: MN LAP 44—Orienting New Employees

33. BThe management. It is management's responsibility to know, to understand, and to implement the laws that apply to the restaurant. If this does not happen, the government may take the restaurant to court, or employees may file lawsuits. However, the basic responsibility for following the law is management's.SOURCE: HR:367SOURCE: MN LAP 55—Managing Diversity in the Workplace

34. DHealth insurance. Insurance usually is a benefit offered to full-time employees. Salaries and quota plans are both types of wage systems. Employee ratings are intended to inform employees of their performance and to show them where improvements can be made.SOURCE: HR:351SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 643-644]. Cincinnati: South-Western.

35. CRemain competitive. Competition among full-service restaurants continues to increase. As a result, these restaurants must have up-to-date marketing information in order to be competitive. They need to know how well the competition is doing, what competitors' prices are, how effective their promotional methods are, and what changes the competition is planning to make. Gathering marketing information helps to reduce risk but cannot eliminate it. A full-service restaurant would not gather marketing information to control customers or manipulate data.SOURCE: IM:001SOURCE: Soloman, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real people, real

choices (5th ed.) [pp. 107, 110]. Upper Saddle River, NJ: Pearson Prentice Hall.

36. BNo, this strategy for gathering information is unethical. It is unethical to advertise and interview for jobs that do not exist in order to get information from a competitor's employees. The competitor's employees may indeed have useful information and may be willing to share it in order to secure a job, but this method of gathering information is neither fair nor ethical.SOURCE: IM:025SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 228-229]. Upper Saddle River, NJ:

Prentice Hall.



37. DSituational. A situational analysis is a study of a restaurant's current circumstances. Factors such as financial standing, sales, staffing resources, and competition are often factors that must be evaluated. When determining what type of data a restaurant needs to operate efficiently and profitably, restaurant owners should look at these variables to determine what data should be collected and retained. Primary, relative, and secondary are not types of analyses.SOURCE: IM:182SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach

for the new millennium (p. 61). Boston: Irwin/McGraw-Hill.

38. CStatistical. Statistical data refers to information that is presented as numbers. For example, researchers can design a survey and assign numerical codes to measure responses. This information can be used to calculate the mean or mode of the responses as well as percentage values. Simulated means to copy or duplicate something. Interactive refers to two-way communication. Although a marketing-information management system can be interactive, it is not always used to analyze or compare numerical data. In business settings, internal is used to describe situations or factors within the full-service restaurant.SOURCE: IM:163SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach

for the new millennium (p. 192). Boston: Irwin/McGraw-Hill.

39. BAverage ordered in the past. Restaurants often rely on past experience when forecasting the number of servings of menu items needed each day. Past experience includes information about the average number of items that customers have ordered in the past. Restaurants use this information to forecast servings of food items. Restaurants do not forecast servings by determining the edible portion of ingredients or weight of cartons on order. The yield from each recipe is used along with the forecast to determine how much stock to order and have on hand.SOURCE: IM:201SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[p. 211]. Upper Saddle River, NJ: Prentice-Hall.

40. CBeneficial. For both the customer and the seller, striking the right pricing balance makes the exchange beneficial. Of course, striking the right balance is not going to make the exchange painful or disappointing. "Manageable" implies that the exchange would be controllable or convenient—which may or may not be true.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way! (Marketing)

41. BMarketing-information management. Marketing-information management is an organized way of continuously gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions. Selling is defined as determining consumer needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Distribution is a marketing function that is responsible for the moving, storing, locating, and/or transferring ownership of goods or services. Purchasing is a business activity that involves obtaining goods and services for use in the operation of a business.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)



42. CPricing strategies. Governments often establish trade barriers to protect the restaurant chains in their countries from foreign competition. Some of these barriers include tariffs that are taxes on imported goods and supplies, quotas that limit the amount of items that can enter the country, and licenses that require the payment of fees to import items. All of these barriers have an impact on the pricing strategies of a restaurant chain that is planning to enter the international market because they often are expensive. Restaurant chains need to consider all the possible trade barriers and how much they will add to the price of their products. If the price becomes too high, restaurant chains might decide not to enter the international market because they will not be able to offer competitive prices. Trade barriers usually do not have an impact on a restaurant chain's selling techniques, distribution methods, and promotional activities.SOURCE: MP:002SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 368]. Upper Saddle River, NJ:

Prentice Hall.

43. BGeographics. Geographics is the division of a market based on where consumers are located. Because our society is quite mobile, restaurants need to be aware of geographic shifts in the population and target their marketing to new residents. Psychographics is the division of a market based on consumers' lifestyles and personalities. Demographics is the division of a market based on its physical and social characteristics. Economics is the study of how people satisfy unlimited, competing wants with limited resources.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met?

44. CCustomer profile. Customer profiles are used by companies to create a clear picture of their target market for use in decision making. A customer profile contains a variety of information about customers, such as age, income level, ethnic background, occupation, etc. This type of record is not known as a preference list, a demographic breakdown, or a consumer composite.SOURCE: MP:005SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 525].


45. AMarketing. A marketing plan is a set of procedures or strategies for attracting the target customer to a restaurant. The marketing plan is one part of the overall business plan that identifies the nature of the company, how it will operate, and what its goals and objectives are. The purpose of the marketing plan is to identify how the restaurant will achieve its goals. A business plan usually does not include a credit plan, an emergency plan, or a training plan. However, these are plans that may be developed if the restaurant needs them.SOURCE: MP:007SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 632-633]. Mason, OH: South-Western.

46. BMarket analysis. A market analysis involves collecting information about a group (segment) that may have an unfulfilled desire for something and is willing and able to pay for it. A restaurant supply business analyzes various segments to determine if it is in its best interests to market its products to those segments. The market analysis considers the size of the market segment, demand, and profitability. A trend is the general direction in which people or events are moving. A technology evaluation assesses a business's technology (e.g., computer, telephone) needs. A strategy assessment is a way to determine if the business is accomplishing its goals through its plans of action.SOURCE: MP:009SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 54]. Mason, OH:

Thomson/South-Western.



47. BMarket leadership. Market leadership is a potential strength that a manager might identify as a result of conducting a SWOT (strengths, weaknesses, opportunities, threats) analysis. New foreign markets is an example of a potential opportunity. Large inventories is an example of a potential weakness. Market saturation is an example of a potential threat.SOURCE: MP:010SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management:

An entrepreneurial emphasis (12th ed.) [p. 42]. Cincinnati: Thomson/South-Western.

48. DHire more workers. One of the ways restaurant supply companies use sales forecasts is in determining whether or not to hire more workers. A projected sales increase would support the hiring of additional employees. A forecast for increased sales would tell a restaurant supply company not to raise its prices, lower inventory levels, or borrow operating funds.SOURCE: MP:013SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 538-539].

Mason, OH: Thomson/South-Western.

49. AEstimating the cost of ingredients and supplies. Full-service restaurants estimate the cost of performing marketing activities in order to set budgets to cover the cost of carrying out the activities. Full-service restaurants need to estimate all costs including the cost of materials and supplies, such as postage, office equipment, telephone, etc. In some cases, the cost of materials and supplies might be sizeable, particularly if the business plans to send letters to all customers. Once full-service restaurants have compiled all the cost information, they can prepare budgets to cover the costs. When setting a marketing budget, full-service restaurants do not review qualifications of employees, study current profit and loss statements, or compare advertising agency presentations. However, a full-service restaurant might ask advertising agencies to submit a quote indicating the cost of preparing advertising.SOURCE: MP:017SOURCE: Burrow, J.L. (2002). Marketing (pp. 539-542). Mason, OH: South-Western.

50. CCustomer satisfaction. One of the best ways for a restaurant to determine if its marketing efforts are effectively reaching the target market is to analyze customer satisfaction. To do this, a restaurant might keep track of the number of new customers it attracts, the number of regular customers it loses, and the number of customers who have complained. It also monitors customers' awareness of the restaurant and its products as well as what customers think about quality and service. Restaurants then use this information to measure the level of customer satisfaction. If restaurants identify problem areas, they can make adjustments in their marketing efforts to correct the situation. Exclusive distribution involves making goods available only in certain locations. The procurement process is the process of purchasing goods and services. Vertical integration occurs when a business is involved in many aspects of the industry, such as exploring for oil, refining oil, and operating service stations.SOURCE: MP:019SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 700-701]. Upper Saddle River, NJ:

Prentice Hall.

51. BAre there enough resources? A marketing audit is an assessment about a full-service restaurant's marketing activities. A comprehensive marketing audit focuses on several aspects of the marketing effort, including marketing strategies, which are the specific plans of action the full-service restaurant uses to achieve the marketing objectives. When the full-service restaurant reviews the strategies, it is important to consider if it has the resources (e.g., financial, personnel, equipment) to carry out the plans of action. The full-service restaurant's pricing approach is part of the pricing decision focus of the marketing audit. Questions about market research are a focus of the marketing audit's market information section, while questions about reports are the focus of the employees' activities and tasks section.SOURCE: MP:024SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 635]. Mason, OH: South-Western.



52. CServers have more time to interact with customers. Servers can enter food orders into handheld computers, and then the orders are electronically delivered to the kitchen. Because the server does not have to physically walk back and forth to the kitchen, s/he can spend more time interacting with customers. Servers do not process credit-card transactions from a handheld computer. It is impractical for restaurants to provide customers with handheld computers while they wait for a table. For example, it would be very expensive to provide enough computers for a large crowd of people, and it would be relatively easy to steal a small electronic device. Handheld computers diminish the need for cooks and servers to communicate face-to-face because order information is sent electronically.SOURCE: NF:059SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)


53. CHire security guards. Guards can deter theft by walking through the restaurant-supply business or by being positioned at exits. Guards also might help handle shoplifting situations. A floor limit is the maximum amount customers are permitted to charge on their credit cards without receiving authorization from the restaurant-supply business. Liability insurance protects the restaurant-supply business when accidents occur. Taking frequent inventories would identify inventory shrinkage.SOURCE: OP:013SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


54. CControl costs. A project plan is the blueprint that a restaurant supply company follows when completing a project. An effective plan helps to control costs by identifying the scope of the project and addressing potential problems that may arise. By analyzing problems in the planning stage, a restaurant supply company is able to develop a method of dealing with the problems that often eliminates the need to make costly changes while completing the project. Project planning does not help a restaurant supply company to train employees, buy supplies, or keep records; although it may identify the type of training that will be needed, the type of supplies to buy, and the records that must be kept.SOURCE: OP:001SOURCE: Launi, J. (1999). Creating a project plan. Software Development Magazine. Retrieved

November 11, 2008, from http://www.sdmagazine.com/documents/s=758/sdm9905d/9905d.htm?temp=zYhrFqoDd5

55. ACompetitive-bid. Placing orders through the use of a competitive-buying method involves sending specifications for products to several vendors who respond with written quotes. Then, the restaurant reviews the quotes and decides which vendor most closely meets the specifications. The specifications might include grade of meat, delivery time, and price. This process is time consuming but often provides restaurants with vendors that are able to provide exactly what the restaurants want. The blank-check buying method involves giving certain vendors the authority to deliver products without first quoting a price. The lowest-price method involves always buying from the low bidder without considering other specifications. Standard-markup is not a buying method.SOURCE: OP:016SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[pp. 211, 213]. Upper Saddle River, NJ: Prentice Hall.

56. BTaking patrons' orders accurately. Food costs are a large part of a restaurant's expenses. When servers write down the wrong items, the wrong order is prepared. Patrons usually refuse to accept a meal they did not order, the food is wasted, and more time must be spent preparing the correct order. Answering the phone courteously is good practice but does not control expenses. Working additional hours would increase expenses. Refusing to accept gratuities, or tips, would reduce the employee's income.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control



57. D$49,140. The rent for space often increases every year, and the amount of increase is negotiated when a restaurant first leases the space. In this example, the rent will increase by 4%. To calculate the amount the restaurant will pay in rent next year, first calculate this year's rent by multiplying the monthly rate by the square footage (2,250 x $1.75 = $3,937.50). Then, multiply the monthly rent by 12 ($3,937.50 x 12 = $47,250). Multiply that amount by the percent of increase and add to this year's rent ($47,250 x 4% or .04 = $1,890; $47,250 + $1,890 = $49,140).SOURCE: OP:028SOURCE: CCH Inc. (n.d.). Leasing office space. Business Owner's Toolkit. Retrieved November 11,

2008, from http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P01_5300

58. D$50.00. Subtract the cash sales from the amount in the restaurant's cash register at the end of the day to determine the beginning cash fund ($241.49 - $191.49 = $50.00).SOURCE: OP:195SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 152-154).

Cincinnati: South-Western Educational.

59. BShare tips with coworkers. In some restaurants, the servers share their tips with coworkers, such as busers and bartenders. When servers share tips, they disclose the amount of their tips to the restaurant so the restaurant can make sure the coworkers receive the proper amount. This is important because many customers pay with credit cards, and the restaurant is responsible for distributing the tip money. Servers do not disclose the amount of their tips to the restaurant because they want an increase in wages or expect to receive promotions. Servers are required to pay taxes on tip money.SOURCE: OP:149SOURCE: Kirkham, M., Weiss, P., & Crawford, B. (2000). The waiting game: The ultimate guide to

waiting tables (p. 41). Austin, TX: Twenty Per Cent.

60. DObservant. Observant full-service restaurant employees can provide the authorities with information about robbers because these employees are alert and remember details. Conscientious full-service restaurant employees are those who do their work to the best of their ability. Being friendly with others and sensitive to their needs are good traits, but they are not applicable in a robbery situation.SOURCE: OP:113SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging

management program: Year one (pp. 94-95). Lansing, MI: Author.

61. BWet mopping. Cleaning the floors is an important part of cleaning the kitchen and dining areas of a restaurant. The recommended method is a method that does not create dust, such as wet mopping tile floors or vacuuming carpeted floors. Wet mopping effectively cleans and sanitizes floors without creating dust that might settle on other areas or pieces of equipment. Restaurants usually do not wash the floors by hand. Dry dusting and sweeping with a broom are not recommended because those methods do not sanitize and also create dust.SOURCE: OP:082SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 267-268]. Weimar, TX: Culinary and Hospitality Industry Publications Services.



62. CPrevent sanitation problems. Sanitation problems are a constant concern for restaurants because handling food always presents the possibility of some type of contamination. Consequently, restaurants develop specific procedures for cooking and storing food, such as cooking temperature, reheating temperature, and holding temperature. Restaurants also specify how and when to clean and sanitize equipment. Without these procedures, food might easily become contaminated and present a health hazard to customers. There are other procedures that restaurants develop to prevent sanitation problems, such as setting policies for personal hygiene. Developing procedures for cooking and storing food and for cleaning food-processing equipment does not eliminate safety hazards or reduce operating expenses.SOURCE: OP:103SOURCE: Mill, R.C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[pp. 266-270]. Upper Saddle River, NJ: Prentice Hall.

63. BArrange everything within easy reach. A lot of time can be wasted when work areas are unorganized. Desks or counters should be free of clutter. Everything should be arranged so that you don't have to walk across the room to use it. Files should be kept in your desk, in filing cabinets, or in storage areas when no longer needed. Reference materials should be close to your desk for easy, quick use.SOURCE: PD:019SOURCE: OP LAP 1—About Time (Time Management in Business)

64. CVolunteer positions. Some job applicants, especially recent graduates, do not have a lot of paid job experience. It is acceptable for them to list unpaid or volunteer positions in the work experience section of their resumes. Volunteer positions indicate job experience and levels of responsibility even if the persons were unpaid. Technical training should be listed in the educational background section. Career objectives and references are separate sections of resumes.SOURCE: PD:031SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 124). New York:

Glencoe/McGraw-Hill.

65. ATo obtain up-to-date information. Trade publications contain information about new products, available resources, particular successes of other full-service restaurants, research, current trends, and legislation. They do not, however, determine product quantities for purchase, appeal to the general public, or help the full-service restaurant set up an operating budget.SOURCE: PD:036SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009) Marketing essentials: Teacher

wraparound edition (pp. 789-790). Woodland Hills, CA: Glencoe/McGraw-Hill.

66. CAdjust prices. Restaurant suppliers should understand that their prices are not set in stone but should be adjustable depending on economic conditions. Restaurant suppliers may need to lower their prices during bad economic times when customers are cautious about how they spend their money. However, when economic conditions are good, restaurant suppliers might increase their prices because customers are more willing to spend. Increasing inventory, remodeling facilities, and improving parking are not significant ways of attracting customers, especially during bad economic times.SOURCE: PI:001SOURCE: PI LAP 2—The Price is Right (Pricing)



67. BPost their prices online. The computer technology that makes the Internet possible also allows businesses to develop web sites and post their prices online. This enables customers to view the prices of products offered by various businesses. It also allows businesses to check the prices of their competitors and made adjustments if necessary. Businesses do not need computer technology to adjust their prices over time. Generating purchase orders and paying invoices electronically are not aspects of the pricing function.SOURCE: PI:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 207-208). New

York: Glencoe/McGraw-Hill.

68. CDiscounts. The most frequently offered discounts are seasonal, trade, cash, and quantity. FOB is a shipping term that means free on board and is used to indicate who pays shipping costs. Advance terms extend the time period for the discount beyond the invoice date. EOM means end of month terms in which the time allowed to pay the invoice does not begin until the end of the month shown on the invoice.SOURCE: PI:019SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 577-581). New

York: Glencoe/McGraw-Hill.

69. CDo we have access to the resources to make this product? Product research and development is an expensive process for a restaurant supply business. Before a business invests time, personnel, and money to take an idea and turn it into a product, it must determine if it has the resources to make the product. If the product requires more resources than the company has access to, it may be impossible to make and market the product. The question about coming up with more product ideas is part of the idea generation process. Questions about needs' satisfaction and willingness to buy the product should relate to the customers rather than the business or its vendors. SOURCE: PM:129SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 281). Tinley Park, IL:

Goodheart-Willcox.

70. APure and meet certain standards. The Food and Drug Administration enforces the Food, Drug, and Cosmetic Act to ensure that food products are unadulterated, correctly labeled, meet certain quality standards, and are safe. People, rather than products, may be free from fear and danger. Safe does not mean that products are covered by a written warranty or are manufactured by professionals.SOURCE: PM:017SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 126-130).


71. CInclude specific questions about operational components. A restaurant supply business needs to know if it is meeting its customers' needs, wants, and expectations. If customers are dissatisfied with goods or services, the business will likely lose their business to competitors. A questionnaire is a common method for businesses to obtain customer feedback. A questionnaire can be formatted in a variety of ways, but it should ask understandable questions so that the business obtains specific answers that will help it make necessary improvements, if needed. To obtain the most specific information, the questionnaire should include operational questions. Operational questions might ask about facility cleanliness, employees' helpfulness and friendliness, or service timeliness. Customers may not take the time to complete the questionnaire if it has too many open-ended questions or requires certain personal information.SOURCE: PM:138SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies,

& cases (2nd ed.) [pp. 312-313]. Orlando, FL: Harcourt.



72. CProduct-mix extension. The particular assortment of goods and services that a restaurant supply business offers in order to meet the needs of its market(s) and its company goals is the business's product mix. A business that adds products to its product mix is implementing a product-mix extension. When a business removes a product line from its product mix, it is implementing a product-line deletion. Shallow-variation mix and wide-retention strategy are fictitious terms. SOURCE: PM:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 332-333]. Mason,

OH: Thomson/South-Western.

73. BHigher payroll expenses. When determining the services to provide its customers, a restaurant must consider many factors, such as the nature of the product, the customers' wants, and the costs associated with providing the service. When a restaurant extends its operating hours, it must pay the employees to do the work. Therefore, the cost associated with extending business hours is the payroll expenses. Increased sales volume, higher profit margins, and increased customer satisfaction are benefits associated with providing the service. SOURCE: PM:036SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 222).

Upper Saddle River, NJ: Prentice Hall.

74. CMeet specific nutrition standards. Many customers are health conscious and concerned with how menu items are prepared. Some type of a healthy heart symbol next to a menu item indicates that the item meets specific nutrition standards, such as low in fat and cholesterol. Many restaurants use the symbol to flag certain menu items to make it easier for customers to select items that are healthy, particularly if the customers are concerned about nutrition. The healthy heart symbol does not indicate that the menu items contain only quality ingredients, are approved by food organizations, or provide a day's supply of vitamins. The purpose of the symbol is to indicate that the items are nutritious and healthy.SOURCE: PM:054SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[pp. 129-131]. Upper Saddle River, NJ: Prentice-Hall.

75. CCompetitive advantage. Restaurant supply businesses often gain a competitive advantage over competitors by offering customers a value or benefit that their competitors do not provide. If a business offers the best quality and service at a reasonable price, it has a competitive advantage over competitors that provide lower quality or higher prices. When businesses position themselves as providers of quality and service, customers often think of them in those terms and prefer to buy from those businesses. Businesses do not gain promotional consideration, geographic benefits, or marketing incentives by positioning products as the ones offering the best quality and service for the price.SOURCE: PM:042SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [p. 227]. Upper

Saddle River, NJ: Prentice Hall.

76. CLoyalty. When customers get into the habit of buying certain brands, known as brand loyalty, they automatically make repeat purchases of that brand. This reduces the amount of time needed to make a sale. Experience with a brand does not always generate sales. Customers who have developed resistance to a brand or object to it for some reason are not likely to buy it repeatedly.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)



77. DFor optimal speed and cutting-edge security, try Lightning-Fast Internet Services, Inc. A benefit is an advantage consumers receive from using a product. For many Internet users, being able to surf the web quickly and feel that their personal information (e.g., credit card numbers) is safe from computer hackers are product benefits. Businesses that position their products by emphasizing product advantages are appealing to the consumers' interest in product benefits. Major Foods uses the competition to position or differentiate its products. Wilson Law Offices use price to position their legal services. The Premier Gourmet Restaurant provides an example of positioning in relation to product quality (luxurious, elegant).SOURCE: PM:043SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 245-246]. Mason,

OH: Thomson/South-Western.

78. CNet sales minus cost of goods sold. Gross margin is the money left after cost of goods expense is subtracted from net sales. The formula for determining gross margin is net sales minus cost of goods sold. The alternatives are not formulas for calculating planned gross margin.SOURCE: PM:065SOURCE: Donnellan, J. (2002). Merchandise buying and management (2nd ed.) [p. 167]. New York:

Fairchild Publications.

79. CTo maintain a consistent image. The price that restaurants charge for menu items often has an effect on the restaurant's image. For example, a restaurant that specializes in steak and seafood has an image of being more expensive than a restaurant that specializes in pasta and salads. Therefore, it is important for restaurants to select items to add to the menu that are priced consistently with the other items. For that reason, a steak restaurant probably would not add an inexpensive sandwich to its menu, nor would a pasta restaurant decide to add an expensive steak to its menu. Doing so would confuse customers and possibly have a negative influence on the restaurant's image. The price that restaurants will need to charge for a menu item does not have an effect on the purchase price. Restaurants often select items in order to follow an established theme and to provide a fun experience for customers. However, those factors are not always associated with price.SOURCE: PM:059SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)


80. ASmall-quantity orders. Quick-serve restaurants that offer child-size portions at lower prices often appeal to families with children. Many restaurants promote and provide other dining features for children, such as quick service and play areas, that encourage more families to dine out. The alternatives may present potential problems for diners with children.SOURCE: PM:010SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)


81. DYield percentage. The yield is an important factor to consider when ordering food items. As a rule, there is a certain percentage of shrinkage when meat is cooked. Therefore, the weight before cooking is more than the weight after cooking which means that the yield percentage will change. Certain cuts of meat have more shrinkage than others depending on fat content. Also, cooking methods, rather than cooking time, often affect yield percentage. Restaurants need to consider yield percentage so they can order the correct quantity of prime rib to prepare a certain number of dinners. Nutrition value is not a consideration when planning the quantity to order. A restaurant might order a larger volume than it actually needs to take advantage of a discount. However, it will need to order at least a certain amount to prepare the required number of dinners.SOURCE: PM:124SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)




82. AServings needed. Restaurants usually try to forecast the number of menu items they will prepare and sell each day in order to order the right quantity of ingredients. To calculate this amount, they consider the number of servings that will be needed. For example, a restaurant needs to estimate servings of side dishes, such as vegetables and salad, to be able to order enough ingredients to prepare those items. If the restaurant orders too much, the food products might spoil before they can be used. If the restaurant does not order enough, it may not be able to prepare the menu items that customers want. When ordering the quantity of food products needed to prepare menu items, restaurants do not consider buying methods or nutritional standards. If a vendor's prices are too high, a restaurant might buy from a different vendor. However, the restaurant will need to buy the same quantity to be able to prepare the estimated number of servings.SOURCE: PM:203SOURCE: Mill, R. C. (2001). Restaurant management: Customers, operations, and employees (2nd ed.)

[p. 211]. Upper Saddle River, NJ: Prentice-Hall.

83. BCommunicated. The basic purpose of promotion is communication. Those who prepare promotional material may gather opinions, research data, or organize their information; but the purpose of their efforts is to communicate information to achieve a desired outcome.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

84. BPrimary product promotion. The advertisements that Gabrielle saw for orange juice and grape juice are examples of primary product promotion. Primary product promotion aims to stimulate demand, or consumer desire, for an entire class of goods or services. The emphasis is on the product and its uses, rather than on a particular brand. Institutional, or corporate, promotion does not attempt to sell a good or service; rather, it attempts to create a certain image of the company in the eyes of the consumer. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. It is used to compete against other makers of the same type of product.SOURCE: PR:002SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

85. DE-mail. Electronic mail is a method of sending promotional messages via computer networks. Each computer has its own e-mail address or path. A street address is a number and street name of a facility that is set up to receive traditional mail service. A P.O. box is a location in a post office that customers can send their mail to hold until they pick it up. A secondary address is a general term used to describe an alternate address to send mail; it can be an electronic or traditional mail location.SOURCE: PR:100SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 326). Mason,

OH: South-Western.

86. DTestimonial. A testimonial is a statement by an identified user of a product, proclaiming the benefits received from the use of the product. An endorsement is approval by a reputable external source. Comparisons are features or claims that are compared with competing products. Features give factual information about the product.SOURCE: PR:014SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 83]. New York: McGraw-Hill Irwin.



87. ASpecial event dinners. Some restaurants develop and publicize special event dinners that are intended to attract certain segments of the target market. Different types of special dinners will appeal to different customers who might try the restaurant for the first time because of the special event. For example, a restaurant might develop a special event dinner based on Italian foods and beverages. The restaurant also might include decorations and music that complement the special event theme. Many restaurants have attractive interior signs, display fresh produce, and have unique table arrangements. However, they do not publicize these factors to promote the restaurant and increase sales.SOURCE: PR:068SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [pp. 75-76].

Weimar, TX: Culinary and Hospitality Industry Publications Services.

88. DPublicity. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that receives it. A restaurant might obtain publicity by notifying the media of an upcoming event. If the media covers the event, the restaurant receives publicity at no cost to itself, which it can coordinate with its other promotional activities, such as advertising. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Research is an investigation or inquiry. Selling is a marketing function that involves responding to consumer needs and wants through planned, personalized communication that influences purchase decisions and enhances future business opportunities.SOURCE: PR:076SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 453-460).

Mason, OH: South-Western.

89. CWorking with key people in the organization. A restaurant supply salesperson must understand the needs and problems of key people in the full-service restaurant in order to provide quality service. The salesperson will be able to gain information about how the restaurant operates by contacting and working with these people. When a salesperson is knowledgeable about a restaurant's needs, s/he is able to satisfy those needs and provide quality service. The result usually is a successful relationship that benefits both the salesperson and the customer (restaurant). Salespeople should not make unannounced sales visits, criticize competitors' products, or make idle conversation during sales calls to full-service restaurants.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 406-412].

Boston: Irwin/McGraw-Hill.

90. ACredit, delivery, and discounts. Terms-of-sale policies are guidelines covering the aspects of a sale with which customers are usually most concerned, through price, delivery, credit, discount, and guarantee policies. Installation, maintenance, and returns are examples of service policies. Entertaining the customer and prospecting are examples of policies that govern the salesperson's selling activities.SOURCE: SE:932SOURCE: Levy, M., & Weitz, B. A. (2007). Retailing management (6th ed.) [pp. 251-252]. Boston:

McGraw-Hill/Irwin.

91. DComputer-based presentations. Many restaurant supply salespeople use computer-based presentations that include graphics, animation, and sound. These types of presentations are particularly effective for demonstrating large products that are difficult to place in a customer's hands. They are also useful in explaining products that are difficult to illustrate, such as insurance or investment options. Restaurant supply salespeople use the computer-technology sales aids to visually demonstrate products and impress customers. Salespeople often use word-processing software to prepare written reports. Geographic mapping systems and database management files are not used to demonstrate products.SOURCE: SE:107SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers of life (6th ed.)

[pp. 186-187, 321-322]. Boston: Irwin/McGraw-Hill.



92. BExperienced salespeople. Experienced salespeople are a good source of product information because they have worked with the goods and services for a long period of time. They know the features and benefits of the goods and services and also may be able to pass on helpful selling points to a new restaurant supply salesperson. Prospective customers are people who may buy the company's products but have not yet done so. Carriers are involved in the transportation of goods. Stockholders are persons or organizations that own stock in a corporation.SOURCE: SE:062SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 266, 268).


93. DThe value of the product to customers. Obvious or apparent benefits are advantages that need little explanation by the restaurant supply salesperson because the customer already knows, or can easily recognize, the benefit. Even though these benefits are obvious, salespeople should still point them out and use them to prove the value of the product to customers. Salespeople do not point out the obvious benefits of a product to prove that the salesperson is knowledgeable, the cost of the product is equal to its worth, or that the business sells quality items. SOURCE: SE:109SOURCE: SE LAP 113—Find Features, Boost Benefits

94. AProperly timed. Proper timing is an important characteristic of a sales approach. Restaurant guests should be given time to consider the menu selections before the server opens the sale. Respect, courtesy, enthusiasm, sincerity, and friendliness are additional characteristics of a good sales approach, but do not relate to providing a guest or customer with enough time to review product (menu) information.SOURCE: SE:110SOURCE: Kirkham, M., Weiss, P., & Crawford, B. (2000). The waiting game: The ultimate guide to


95. AUsing a bonus close. A bonus close offers the customer something extra for buying immediately. This close can only be attempted if the restaurant supply business authorizes such a special. Closing on an objection is a closing technique in which a restaurant supply salesperson answers a customer's objection so that the customer no longer has a reason not to buy. A minor-points close involves getting the prospect to make minor decisions about a purchase before asking for the major decision of whether to buy. A choice close helps the customer reach a buying decision by reducing the number of items from which to choose and then asking the customer to choose between the remaining ones.SOURCE: SE:895SOURCE: Anderson, R.E., & Dubinsky, A.J. (2004). Personal selling: Achieving customer satisfaction

and loyalty (pp. 214-215). Boston: Houghton Mifflin.

96. CHelps management plan staffing needs. Full-service restaurant managers often review the reservation log to help plan staffing needs. As a rule of thumb, the manager schedules more people to work during shifts when there are a lot of reservations and fewer people during shifts that have fewer reservations. Taking reservations does not provide chefs with more time to prepare entrees, nor does it increase table turnover rates or provide servers with information about guest no-shows.SOURCE: SE:163SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [p. 218].




97. CProvide the best available table. When seating guests at a restaurant, it's important to provide the best available table. Tables located near the kitchen or bathrooms are less desirable and should not be used until there are no other tables left. You should greet and seat all guests in the same cordial manner, giving priority to none except those who have reservations. If possible, satisfy the guests' table preference. It's necessary to distribute the workload evenly among servers; however, it's not a priority to seat guests according to the servers' preference. A non-smoking section should be available for non-smokers; however, it's not necessary to give guests priority based on their smoking preference.SOURCE: SE:148SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [p. 219].


98. BServing food from the patron's left. Food items should be served from the left. Beverages should be served from the customer's right with the right hand. Side dishes should be placed on the customer's left. Servers should not reach across the table unless absolutely necessary.SOURCE: SE:144SOURCE: Kirkham, M., Weiss, P., & Crawford, B. (2000). The waiting game: The ultimate guide to


99. ARefill the customers' water glasses and soft drink orders without being asked. It is important for full-service restaurant servers to be attentive to their guests. One way of being attentive is by anticipating the guests' needs, which includes watching their nonverbal cues. For example, if a server sees that a guest's water glass is empty, the server should refill the glass before the guest needs to ask for it. Servers should also promptly present the check after they are certain that guests do not want anything else. Servers should approach guests promptly after being seated in order to greet them, to take drink orders, and to see if they have any questions about the menu. Seating guests at tables that have not been cleared does not provide guests with a good impression of the restaurant.SOURCE: SE:339SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 216, 221]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

100. DGross profit. Net profit or net income is gross profit less expenses. Net sales would be the amount of sales remaining after refunds and allowances for returned or defective goods. Overhead is the costs that result from the operation of a business.SOURCE: SM:005SOURCE: Bond, R. (2001). Retail in detail: How to start and manage a small retail business (2nd ed.)

[pp. 122-124]. Central Point, OR: Oasis Press.


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