Posted by Carl Jones on August 15, 19100 at 23:41:46 :
In Reply to: pricing menus posted by m gardner on August 15, 19100 at 23:21:08 :
: can you please tell me how to price out food in menus. i work for a rest. and am trying to get help in seeing what i should charge for food on this menu. Is there some kind of formula.
Depends on what kind of food cost percentage you wish to run... but before deciding that, you have to know that most family style steak houses run a 40% food cost.... Outback's run about 33%
Perkins run 30%, Burger joints run 23%, pizza places run about 18 - 22%.... depending on the competition of course.
ok, lets say you wish to run a 34% food cost... figure the dollar cost of the recipe and divide by .34, that will give you the price you should charge to achieve a 34% food cost....
but beverages will tend to bring the percentage down.... recooks and waste and pilferage will bring it up.... higher priced items like filet mignons could be price with say a 42% food cost to keep the price from being outrageous.. remember though, you dont take percentages to the bank... you take dollars...
I would rather sell a filet with a 42 % food cost at 20.00 than a chicken breast with a 30% food cost at 7.95.... I would make more MONEY with the filets.... but if that were my focus and the market was price conscious, then I may price myself out of business...
there are too many factors .... i could give you 1000 senarioes and still not cover the pricing theories....
I say.. look at your costs, look at your product, look at your competition... I would rather make 2.00 on 300 guests than 6.00 on 30..... so look at your restaurant capacity and turns... what CAN you do there.... maximize!!!! Look at Outback.. they build small restaurants... why?? to create a wait list.... they are pricey, but good at what they do and you will always wait... they have created a mystique...
Hope this helps a little...
Carl