Hotel and Restaurant Management

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Chapter 15

1. Describe restaurant marketing.

2. What is the difference between marketing and sales?

4. Give examples of how marketing solves customer problems.

6. What is meant by market positioning?

9. Develop an outline for your restaurant’s marketing and business plan.

12. Discuss which restaurant promotions are the most effective.

Chapter 16

1. In drawing up a sales budget for a casual Italian restaurant, what percentage of weekly sales should be forecasted for Friday and Saturday evenings?

4. Aside from its value in planning, why is it essential to do a budget forecast of sales, costs, and profit?

5. Suppose that after forecasting sales and deducting expenses, you are left with 3 percent operating profit before interest charges and taxes. What would you do?

7. In seeking a construction loan, would you expect to have the entire amount of the loan given to you in a lump sum? Explain.

10. Is it possible (not probable) to start a restaurant without any cash of your own? Explain.

Chapter 17

1. In setting up a restaurant business, you have a choice of operating as a corporation, partnership, or sole proprietorship. Which will you choose, and why?

2. What are some dangers of operating a restaurant as a partnership?

3. If you wanted to operate your restaurant as a corporation but be taxed as an individual, how could you arrange this?

7. Name at least five benefits that restaurant owners can give themselves without income tax consequences.

8. Why would you want to take accelerated depreciation during the first years of a new restaurant?