PRICING AT FOOD SERVICE ESTABLISHMENT UNDER THE CONDITIONS OF THE REGION

Abstract

The analysis of an average margin and methods of pricing at different foodservice establishments (FE) under the conditions of the region (The Kemerovo region) is presented in the article. Factors for margin determination at FE are revealed: the cost of dish formula ingredients, labor costs, a price - volume of sales ratio, category of dishes, and the average level of a margin is given in different kinds of foodservice establishments. Methods of pricing are characterized basing on expenses, demand assessment, and competition assessment. The comparative analysis has been carried out. Basing on the analysis of the methods the algorithm of prices determination for FE products and goods purchased for FE under regional conditions is offered. The equation for calculation of a margin at FE formulated according to the offered algorithm was used for calculating the minimum margin (a profitability point margin) for FE of different kinds (a cafe, a restaurant). The results of researches show the urgency of pricing strategy in the sphere of foodservice industry. Taking into account the price increase for raw materials under the existing economic situation the following recommendations may be given: determining the product price it is necessary to control its lower price bounds using a method based on expenses; when a consumer demand is decreasing marketing methods of pricing are the primary ones, the external borders being determining. The results of the analysis of a margin at FE are recommended for practical application.

Keywords

• foodservice establishment (fe)
• pricing
• margin
• algorithm
• sphere of foodservice industry
• food products
• region conditions