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Restaurants use several methods to determine the popularity of competing items on a menu. A sales mix analysis is used to monitor the effectiveness of menu items that best meet the needs of customers and maximize the profits of the operation. Several steps are involved in performing a sales mix analysis.
You are the new Assistant Manager at your hotel’s upscale dining restaurant. The food and beverage director asked you to prepare the sales mix analysis on the top 5 competing menu items for the restaurant. Based on the formulas in the textbook, determine the steps in the sales mix analysis and complete the table in the template below.
Determine the menu mix percentage (popularity rate)
Determine menu item CMs
Calculate average CM (profitability)
Compare menu items and average CMs
Classify the menu items
Make a recommendation on which items (if any) should be dropped
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