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That may well be the case, but in the restaurant industry it is potentially keeping in place a local maxima. No restaurant can experiment with spending less on
by bradleyjg 5y ago
That may well be the case, but in the restaurant industry it is potentially keeping in place a local maxima. No restaurant can experiment with spending less on front of house and more on back of house, ingredients, or space. That percentage of revenue (~25%) is locked in and untouchable.
- HWR_14 5y agoSpending 25% on the front of the house? That's a huge amount - labor is probably less than 25% all in.
- bradleyjg 5y ago20% comes off the top in the form of tips that never make it to the till. The other 5% is a fudge factor for the fact that you still need to pay something in wages.
- HWR_14 5y agoYour numbers imply that the hourly productivity of a waiter in the US serves food that is just under $50 on the menu and thy make a $12.50 tip on the same. More in areas with a higher tip minimum wage. Do those numbers seem reasonable to you?
- bradleyjg 5y agoI don’t understand where you are getting those numbers.