Module 1 Quiz: Financial Foundations

1.A coffee shop's average ticket is $7.50 with 68% beverage margin. If they increase the average ticket to $8.75 while maintaining the same margin, and they serve 150 customers per day, what is the additional monthly profit (30 days)? A) $1,237.50 B) $2,531.25 C) $4,050.00 D) $5,512.50 **Correct Answer: C)**

2.Which of the following BEST describes the behavioral economics principle of "loss aversion" as it applies to coffee shop loyalty programs? A) Customers prefer earning points over receiving immediate discounts B) Customers feel the pain of losing points more intensely than the pleasure of gaining them C) Customers will always choose the cheapest option to avoid financial loss D) Customers prefer physical stamp cards over digital apps **Correct Answer: B)**

3.A shop's hourly revenue heatmap shows 62% of revenue occurs between 7-9 AM. Between 2-4 PM, only 8% of revenue occurs. What is the MOST effective strategy for the 2-4 PM daypart? A) Close the shop during slow hours to reduce labor costs B) Run a happy hour promotion with discounted drinks and food bundles C) Use the time for deep cleaning and equipment maintenance D) Schedule only one barista and accept lower revenue **Correct Answer: B)**

4.Which menu item categorization in the Star-Puzzle-Plow Horse-Dog matrix should be REMOVED from the menu? A) Stars — High sales, high margin B) Puzzles — Low sales, high margin C) Plow Horses — High sales, low margin D) Dogs — Low sales, low margin **Correct Answer: D)**

5.What is the optimal pricing structure for milk alternatives (oat, almond, macadamia) based on industry data and behavioral economics? A) Include alternative milk at no extra charge to differentiate from competitors B) Charge $0.75-$1.00 as a premium upcharge, framed as a quality upgrade C) Charge $0.25 to minimize customer resistance D) Only offer dairy milk to simplify operations **Correct Answer: B)**

6.The "10-Visit Challenge" loyalty program works primarily through which three behavioral mechanisms? A) Scarcity, authority, and reciprocity B) Loss aversion, endowment effect, and goal gradient effect C) Social proof, anchoring, and framing D) Habit formation, consistency, and peak-end rule **Correct Answer: B)**

7.A barista says: "Would you like a pastry with that?" This converts 12% of the time. Which script would MOST increase conversion? A) "Can I get you anything else?" B) "Our pastries are baked fresh this morning." C) "The almond croissant pairs perfectly with our oat milk latte. Want to try one?" D) "If you add a pastry, I can give you our Morning Bundle and save you $1.50." **Correct Answer: C)**

8.Which KPI is the LEADING indicator of coffee shop health (predicts future revenue)? A) Yesterday's total revenue B) Customer visit frequency this week C) Last month's net profit D) Average Google review rating **Correct Answer: B)**

9.For a wholesale coffee account, what is the standard pricing structure? A) 25% off retail price B) 50% off retail price C) 75% off retail price D) Cost plus 10% **Correct Answer: B)**

10.When implementing a price increase, which approach minimizes customer resistance based on behavioral research? A) Announce the increase 30 days in advance with detailed cost justification B) Implement immediately with no explanation C) Frame as a product upgrade with specific improvements D) Increase prices gradually by small increments over 6 months **Correct Answer: C)**