In menu analysis, which item is often subject to price reductions?

In menu analysis, which item is often subject to price reductions?

• A. Puzzle
• B. Dog
• C. Plowhorse
• D. Star

Answer: (A)

In menu analysis, the item that is often subject to price reductions is typically referred to as a "Plowhorse." Plowhorses are menu items that sell well but do not have a high profit margin. They are popular among customers, which makes them significant for maintaining sales volume, but their lower cost can result in reduced profitability for the business. By strategically reducing the price of a plowhorse item, a restaurant can increase its appeal and further enhance sales volume. This tactic draws more customers to the menu item, potentially compensating for its lower margin while also encouraging patrons to explore other, higher-margin items. Other terms often used in menu analysis, such as "Dog" and "Star," refer to items with different characteristics. Dogs are items with low sales and low profitability, while Stars are high sellers with high profitability. Each of these items generally follows different strategies regarding pricing and marketing.

In menu analysis, the item that is often subject to price reductions is typically referred to as a "Plowhorse." Plowhorses are menu items that sell well but do not have a high profit margin. They are popular among customers, which makes them significant for maintaining sales volume, but their lower cost can result in reduced profitability for the business.

By strategically reducing the price of a plowhorse item, a restaurant can increase its appeal and further enhance sales volume. This tactic draws more customers to the menu item, potentially compensating for its lower margin while also encouraging patrons to explore other, higher-margin items.

Other terms often used in menu analysis, such as "Dog" and "Star," refer to items with different characteristics. Dogs are items with low sales and low profitability, while Stars are high sellers with high profitability. Each of these items generally follows different strategies regarding pricing and marketing.