Re: Catering Quandry?

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Posted by Timothy Banning on August 29, 19100 at 19:37:02 :

In Reply to: Re: Catering Quandry? posted by Sam Sears, CEC on August 28, 19100 at 18:58:51 :

Sam and Ron,
It is my guess that you will have the same dollar cost for labor on upscale menus and that will translate to a lower percentage cost.

Just as an example (with numbers take out of thin air): If you charge $10 per plate for a pasta item at 25% food cost, and $30 dollars for a lobster plate at 50% food cost. It takes the same labor (more or less) to prepare, serve, and clean up for both plates. Minus the food cost You have $7.50 for the pasta as opposed to $15.00 for the lobster to pay these same cost.

Percentages are great tools for analyzing Profit and Loss statements and as a starting point in developing menu items but experience and knowledge of the market are just as important in costing a menu.

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