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re: Five of the Most Overpriced Foods on Restaurant Menus
Posted on 5/12/15 at 10:38 pm to LSUAfro
Posted on 5/12/15 at 10:38 pm to LSUAfro
quote:No you didn't just read that. When people start making stuff up, then it's definitely time for me to go.
I think I just read that tracking and understanding your food costs in a restaurant "doesn't mean that much".
Posted on 5/12/15 at 11:04 pm to Langland
I have to add in a wedge salad...what a ripoff!
Posted on 5/12/15 at 11:10 pm to LSUAfro
quote:
I think I just read that tracking and understanding your food costs in a restaurant "doesn't mean that much". Just hard to know where to go from here
I'm not surprised that's your takeaway.
No one in this thread stated that food costs "don't mean that much", it was stated that alone the metric is of limited value. Much like the unemployment rate, it can be useful but only with the correct context.
The likelihood of a restaurant's profitability is more closely tied to the "prime cost" as opposed to purely food costs.
Posted on 5/13/15 at 6:13 am to Oenophile Brah
I analyzed drink costs when I was running my own restaurant and I think people overestimate profits on soft drinks. If customers get 1 or 2 refills, the profits aren't as high as most people think. You still make money on it but it's not where you are going to make your money in a restaurant.
Analysis from a while back- costs on bag in the boxes may be different now.
There is around 3960 ounces served in a 5 gallon ($70each) bag in the box which puts the cost at $.02/oz ($70/3960) Most restaurants use 20 ounces cups or something similar. I would assume that at least 10-15 ounces of coke go into a cup. So @12.5(assume the middle) ounces per cup
1 Fill= $.25 + Ice (assume $.05) + Foam Cup & Lid-$.07(or diswashing fee for plastic/glass cup) + CO2 tank (assume $.005 per oz)= $.43 cost
2 Fills= $.50 + Ice + Cup= $.68 cost
3 Fills= $.75 + Ice + Cup= cost $.93
4 Fills= $1.00 + Ice+ Cup= cost $1.18
The only thing I didn't add in here is the cost of electricity to run the machine which would be hard to quantify and the cost of the servers to bring it to you. Restaurants do make money on soft drinks but I don't think it is as much as most people think after everything is factored in.
Analysis from a while back- costs on bag in the boxes may be different now.
There is around 3960 ounces served in a 5 gallon ($70each) bag in the box which puts the cost at $.02/oz ($70/3960) Most restaurants use 20 ounces cups or something similar. I would assume that at least 10-15 ounces of coke go into a cup. So @12.5(assume the middle) ounces per cup
1 Fill= $.25 + Ice (assume $.05) + Foam Cup & Lid-$.07(or diswashing fee for plastic/glass cup) + CO2 tank (assume $.005 per oz)= $.43 cost
2 Fills= $.50 + Ice + Cup= $.68 cost
3 Fills= $.75 + Ice + Cup= cost $.93
4 Fills= $1.00 + Ice+ Cup= cost $1.18
The only thing I didn't add in here is the cost of electricity to run the machine which would be hard to quantify and the cost of the servers to bring it to you. Restaurants do make money on soft drinks but I don't think it is as much as most people think after everything is factored in.
Posted on 5/13/15 at 6:25 am to Oenophile Brah
quote:
No one in this thread stated that food costs "don't mean that much",
what?
quote:
Food Cost percent doesn't mean that much
quote:
The likelihood of a restaurant's profitability is more closely tied to the "prime cost" as opposed to purely food costs.
No shite. But this article wasn't about food and labor. It was about food.
But you're a fool if you think a restaurant manager and owner aren't paying close attention to their food costs and you'd never hear one say it doesn't mean that much.
quote:
I'm not surprised that's your takeaway.
Don't be mad
This post was edited on 5/13/15 at 6:28 am
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