3 ms·

2) is the correct answer. Most restaurateurs in Canada (and probably the US) are simply unsophisticated. Most of the restaurants I've worked for and/or run ar

2) is the correct answer. Most restaurateurs in Canada (and probably the US) are simply unsophisticated. Most of the restaurants I've worked for and/or run are basically money printing machines (I've been lucky and feel I'm pretty good now) while a few crashed and burned hard (and it was always pretty obvious they would). The example in the article has many, many things wrong with it.

Ntrails 7y ago
The general rule that I've seen in the handful of UK establishments in which I've chef'd, is that food should be priced by ~tripling the cost of the raw ingredients. It's a pretty inexact science for anywhere small ish with a frequently changing menu - but it doesn't matter. Alcohol also has a big markup, don't get me wrong, but it's not alone. And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee.
- Mikeb85 7y ago
  Simply 3x-ing COGS might 'work', but you're leaving a lot of money on the table. > And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee. No, soft drinks lose you money because it's often a replacement for more expensive alcoholic drinks. The typical soft drink here is $3, even a $6 beer will net me more gross profit than the total price of the soft drink. That's why craft sodas, kombuchas, home-made mocktails and the like are de rigueur nowadays... Tea/coffee is 'free profit' in the sense it's usually an addition at the end of the meal and not everyone will order a digestif.
illumin8 7y ago
> The example in the article has many, many things wrong with it. Agreed. The author of the article seems to lack some basic business skills. I realize that if you're making an artisan sandwich at home you might want to use the best possible ingredients (the artisan sourdough she talks about, etc), but you can't expect to build a viable restaurant business where you are spending so much on raw materials. If I was making myself the ultimate burger I might use wagyu beef that cost over $10 a pound and some artisan cheese, pasture-raised bacon, etc, but I wouldn't try to create a fast casual restaurant and expect to make a profit using those ingredients.
- Mikeb85 7y ago
  Yup, her food cost is out of control and her fixed costs are way too high meaning her sales are low. That's just a a failure of her concept...

Ntrails 7y ago

The general rule that I've seen in the handful of UK establishments in which I've chef'd, is that food should be priced by ~tripling the cost of the raw ingredients. It's a pretty inexact science for anywhere small ish with a frequently changing menu - but it doesn't matter. Alcohol also has a big markup, don't get me wrong, but it's not alone. And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee.

Mikeb85 7y ago
Simply 3x-ing COGS might 'work', but you're leaving a lot of money on the table. > And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee. No, soft drinks lose you money because it's often a replacement for more expensive alcoholic drinks. The typical soft drink here is $3, even a $6 beer will net me more gross profit than the total price of the soft drink. That's why craft sodas, kombuchas, home-made mocktails and the like are de rigueur nowadays... Tea/coffee is 'free profit' in the sense it's usually an addition at the end of the meal and not everyone will order a digestif.

illumin8 7y ago

> The example in the article has many, many things wrong with it. Agreed. The author of the article seems to lack some basic business skills. I realize that if you're making an artisan sandwich at home you might want to use the best possible ingredients (the artisan sourdough she talks about, etc), but you can't expect to build a viable restaurant business where you are spending so much on raw materials. If I was making myself the ultimate burger I might use wagyu beef that cost over $10 a pound and some artisan cheese, pasture-raised bacon, etc, but I wouldn't try to create a fast casual restaurant and expect to make a profit using those ingredients.

Mikeb85 7y ago
Yup, her food cost is out of control and her fixed costs are way too high meaning her sales are low. That's just a a failure of her concept...