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re: Five of the Most Overpriced Foods on Restaurant Menus

Posted on 5/12/15 at 10:38 pm to
Posted by Langland
Trumplandia
Member since Apr 2014
15382 posts
Posted on 5/12/15 at 10:38 pm to
quote:

I think I just read that tracking and understanding your food costs in a restaurant "doesn't mean that much".
No you didn't just read that. When people start making stuff up, then it's definitely time for me to go.
Posted by slaphappy
Kansas City
Member since Nov 2005
2340 posts
Posted on 5/12/15 at 11:04 pm to
I have to add in a wedge salad...what a ripoff!
Posted by Oenophile Brah
The Edge of Sanity
Member since Jan 2013
7540 posts
Posted on 5/12/15 at 11:10 pm to
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 by JasonL79
Member since Jan 2010
6397 posts
Posted on 5/13/15 at 6:13 am to
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.

Posted by LSUAfro
Baton Rouge
Member since Aug 2005
12775 posts
Posted on 5/13/15 at 6:25 am to
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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