Comments on: How do restaurant’s establish their menu prices? http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices Mon, 01 Feb 2010 19:59:59 -0500 http://wordpress.org/?v=2.8.2 hourly 1 By: Kasey C http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices/comment-page-1#comment-4334 Kasey C Sun, 22 Nov 2009 10:38:59 +0000 http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices#comment-4334 Oh, a LOT of factors 1) What are my competitors charging? 2) What are my costs? (material, labor, shrinkage, spoilage, etc.) 3) What are my desired profit margins? 4) Portion size? 5) What consists of a typical meal? (Can we make up for low profit here with higher profit on something else, like dessert, drinks, etc.?) In general, restaurants mark up their food beyond material prices by at least 500% to account for labor and overhead. I think Chef Anthony Boudin (sp?) has some books that may reveal something on this subject.<br><b>References : </b><br> Oh, a LOT of factors

1) What are my competitors charging?

2) What are my costs? (material, labor, shrinkage, spoilage, etc.)

3) What are my desired profit margins?

4) Portion size?

5) What consists of a typical meal? (Can we make up for low profit here with higher profit on something else, like dessert, drinks, etc.?)

In general, restaurants mark up their food beyond material prices by at least 500% to account for labor and overhead. I think Chef Anthony Boudin (sp?) has some books that may reveal something on this subject.
References :

]]> By: Common Sense http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices/comment-page-1#comment-4333 Common Sense Sun, 22 Nov 2009 10:25:59 +0000 http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices#comment-4333 They want a specific return, say 25%. Then they compute all the costs in that meal and then add the desired profit margin. Gordon Ramsay has said 1/4 of a meal is food cost, 1/4 labor, 1/4 overhead and 1/4 profit<br><b>References : </b><br> They want a specific return, say 25%.
Then they compute all the costs in that meal and then add the desired profit margin.
Gordon Ramsay has said 1/4 of a meal is food cost, 1/4 labor, 1/4 overhead and 1/4 profit
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]]> By: i_we_todd http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices/comment-page-1#comment-4332 i_we_todd Sun, 22 Nov 2009 09:39:59 +0000 http://www.eclano.net/restaurant-menu/how-do-restaurants-establish-their-menu-prices#comment-4332 probably by how the economy is doing or my other guess would be how the other restaurants around them are pricing their food.<br><b>References : </b><br> probably by how the economy is doing or my other guess would be how the other restaurants around them are pricing their food.
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