Short Food Systems Final

Assets = Liabilities + _____

Owner’s Equity

On an income statement, Total Sales is always the number represented as _____

100%

The most important number on a P&L statement is the "bottom line," which is the _____

Net Profit or Loss

Total Gross Profit is calculated by subtracting food cost (COGS) from _____

Sales

The formula for Cost of Goods Sold is Beginning Inventory + Purchases - _____

Ending Inventory

Food cost percentages for many operations typically range between _____

30-33% [User History]

For an operation, it is generally better to have a _____ food cost percentage

lower [User History]

Labor and overhead costs are often targeted at approximately _____ of total costs

1/3 [User History]

To calculate Full-Time Equivalents (FTEs) for a week, divide total hours worked by _____

40

The two primary methods for evaluating the payback period of an investment are simple and _____

Net Present Value (NPV)

Net Present Value (NPV) is a more sophisticated investment evaluation because it considers the _____

time value of money

The _____ ratio is calculated as Current Assets divided by Current Liabilities

current

The _____ ratio is a stricter measure of liquidity that only includes cash, receivables, and marketable securities

acid-test (or quick)

To calculate Profit Margin, you divide _____ by Sales

Net Profit

The point where total revenue equals total expenses is the _____

break-even point

In the break-even formula, the contribution margin is the ratio of _____ cost to sales subtracted from 1

variable

The calculation used to convert snacks or beverages into a standard number of meals is the _____

meal equivalent

In menu engineering, items that are highly popular but have low profitability are called _____

plow horses

In menu engineering, items that are both highly popular and highly profitable are called _____

stars

In menu engineering, items that have low popularity but high profitability are called _____

puzzles

In menu engineering, items that have low popularity and low profitability are called _____

dogs

The _____ pricing method multiplies the raw food cost by a factor (100 / desired food cost %)

factor (or markup)

The 4 P’s of marketing are Product, Price, Place, and _____

promotion

The best way to assess customer satisfaction is to _____ with guests

talk

_____ employees are exempt from labor time restrictions like minimum wage and overtime

Salaried

Only _____ employees are eligible for time and a half or double time pay

hourly

A(n) _____ is a plan for daily operations including sales and expenditure projections

operating budget

A(n) _____ is a long-term plan for major improvements or equipment purchases

capital budget

The ability to meet the needs of today without compromising future generations is _____

sustainability

The systematic allocation of the cost of a physical fixed asset over its estimated useful life is _____

depreciation

Profit is when income is greater than _____

expenses

A _____ occurs when expenses are greater than income

loss

The amount spent for goods like raw food is a _____, while the cost of doing business like rent is an _____

cost

The process of allocating the cost of an intangible asset over time is _____

amortization

The outcomes of a foodservice system include Quantity and Quality of Meals, Customer and Employee Satisfaction, and _____

Financial Accountability

The Stage 1 "shade of green" where a company only does what is legally required is the _____

legal approach

The Stage 4 "shade of green" where a company actively preserves the earth and its resources is the _____

activist approach

A P&L statement is also known as a(n) _____

income statement

Resources of a company.

Assets

An area of accounting concerned with an independent review of accounting records involving examination of records that support financial reports and formulation of an opinion regarding the fairness and reliability of these reports.

Auditing

Statement of assets, liabilities or debts, and capital or owner’s equity at a given time or at the end of the accounting period.

Balance sheet

Technique for assessing financial data to determine the point at which profit is not being made and losses are not being incurred.

Break-even analysis  

Plan for operating a business expressed in financial terms.

Budget

Financial statement in which data are expressed as percentages for comparing results from one accounting period to another.

Common-size statements  

Proportion of sales that can contribute to fixed costs and profits after variable costs have been covered.

Contribution margin

Costs that do not vary with changes in the volume of sales.

Fixed costs (FCs)

Financial report that presents the net income or profit of an organization for the accounting period.

Income statement

Debts of a company.

Liabilities

Money value of a company in excess of its debts that is held by the owners.

Owner’s equity

Statement that projects expected income and expenditures.

Pro forma statement  

Money has a differing value over time; having $1 today is worth more than receiving $1 in the future.

Time value of money

Costs that vary directly with changes in sales.

Variable costs (VCs)  

Physical elements in an operation’s design that appeal to customers’ emotions.

Atmospherics

Name, term, design, symbol, or feature that identifies one seller’s good or service as different from another’s.

Brand

Value of a brand.

Brand equity

Frequency with which a customer consistently purchases a specific brand.

Customer loyalty

Positive, neutral, or negative feelings about the value received from a product.

Customer satisfaction

Population characteristics that might influence product selection, such as age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class, and price sensitivity.

Demographic variables  

Include climate, terrain, natural resources, population density, and subcultural values that influence customers’ product needs.

Geographic variables

Variation and lack of uniformity in the performance by different service employees.

Heterogeneity of service  

Inability to separate production and service.

Inseparability

 Inability of services to be seen, touched, tasted, smelled, or possessed before buying.

Intangibility of services  

Division of total market into groups of customers who have similar needs, wants, values, and buying behavior.

Market segmentation  

Percentage of industry sales for a product.

Market share  

An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing

Combination of product, price, place, and promotion to satisfy target market.

Marketing mix

A statement of what is to be accomplished through marketing activities.

Marketing objective  

Written document or blueprint governing an organization’s marketing activities.

Marketing plan  

The function that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Marketing research  

The selection and analysis of a group of people, identified as a target market, which the organization wants to reach; includes the creation and maintenance of an appropriate marketing mix that will satisfy those people.

Marketing strategy

Marketing to the single customer, the smallest niche.

Micromarketing

A summation of the organization’s purpose, competition, target market, product, and service and of the recipients of the service, including consumers, employees, owners, and the community.

Mission statement

Focuses on identifying small but profitable segments of the market and making products specifically for this segment.

Niche marketing

Services cannot be stored for future sale.

Perishability of services  

Use of communication to inform and influence consumers.

Promotion

Motives and lifestyle characteristics.

Psychographic variables  

Identification of marketing opportunities and challenges.

Situation analysis

A form of Internet marketing that focuses on marketing through social media networks.

Social media marketing  

Each SBU is a separate component of the organization and has a specific market focus and a manager with responsibility for placing all functions into a strategy.

Strategic business units (SBUs)  

Focuses on identifying the Strengths, Weaknesses, Opportunities, and Threats to an organization.

SWOT analysis  

Specific action.

Tactic

Customer with common characteristics for which an organization creates products/services.

Target market

 measure of one’s impact on the environment based on the amount of greenhouse gases produced directly or indirectly to support human activity.

Carbon footprint

Products that are at least 95% organic may carry the U S D A-certified organic seal.

Certified organic

Increased levels of greenhouse gases are trapped and absorb infrared radiation, contributing to the warming of the atmosphere.

Climate change

A balance between emitting carbon into and absorbing carbon from the atmosphere.

Climate neutrality/carbon neutrality

Carbon dioxide, methane, nitrous oxide, fluorinated gases.

Greenhouse gases

Term that denotes the distribution of misleading or inaccurate claims by a company about its environmental efforts to create a positive public image for the company.

Greenwash

Foods grown within a specified distance of the consumer.

Locally grown foods

Foods labeled organic must be grown/raised in an organic production process on farms that are inspected by government certifying agencies.

Organic

Creating and maintaining conditions under which humans and nature can exist in productive harmony to support present and future generations.

Sustainability

An integrated system of plant and animal production practices that will satisfy human food and fiber needs, enhance environmental quality, promote efficient use of nonrenewable resources, sustain the economic viability of farm operations, and enhance the quality of life for farmers and society

Sustainable agriculture

A critical output of the foodservice system; involves the perceptions of customers related to the food they were served, the service that was provided to them, and the atmosphere in which it was provided.

Customer satisfaction  

Beliefs and feelings an employee has about his or her job.

Employee satisfaction  

A management information tool that focuses on both the popularity (menu mix) and the profitability (contribution margin) of menu items.

Menu engineering  

Persons unknown to customers and employees who eat at in a foodservice operation and evaluate their own experiences and those of other customers.

Mystery shoppers

What is expected in a food product; provide the basis for monitoring performance of the organization and taking corrective action deemed necessary.

Product standards  

Science that measures the texture, flavor, and appearance of food products through human senses.

Sensory analysis