5 ms·
You are correct, but most restaurants just multiple the food cost by 4 to set the price. It is rather silly, but that is the way the industry works.
by danieltillett 8y ago
You are correct, but most restaurants just multiple the food cost by 4 to set the price. It is rather silly, but that is the way the industry works.
- mchannon 8y agoI don't think it's silly to come up with a pricing method that is simple and uniform to apply. However, "4" can just as easily morph to "3" or "5" if the fundamental costs change industrywide.
- danieltillett 8y agoIt is silly because food cost is only one part of the cost of providing a meal. Really all of the costs should be dumped into a program which spits out exactly what to charge for each menu item.