haya.Learning made clear
Pricing: factors and methods sheet
10-mark answer frame

Explain the factors affecting pricing and the methods of pricing in a food service establishment.

How to lay out the answer. Follow the frame, then write it in your own words.

  1. 1 · Open in two lines. Pricing is fixing the amount a customer pays for food. A good price covers cost, meets the unit's aim and suits the customers.
  2. 2 · Factors affecting pricing.
    • Cost, aim of the unit, customers' ability to pay.
    • Competition, type, location, service style.
    • Portion and quality, season, government policy, raw material prices.
  3. 3 · Draw a chart of methods. [Chart: Pricing methods → cost-plus, factor, rate of return, subsidy, discount]
  4. 4 · Cost-plus and factor methods. ₹60 + 25% = ₹75; ₹24 × 2.5 = ₹60 (40% food cost).
  5. 5 · Rate of return, subsidy and discount. ₹10 lakh at 18% → ₹63 a meal; worker pays ₹24 of a ₹60 meal; 10% student discount needs more sales.
  6. 6 · In a real kitchen. Subsidy lets workers afford a balanced meal; the factor method keeps food cost steady as prices change.
  7. 7 · Close in one line. The right price balances cost, customer and purpose; it is reviewed whenever costs change.

Scoring tip: Give each method one worked line with numbers; it turns a theory answer into a full-marks answer.