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re: About how much does a restaurant make off a $20 meal?

Posted on 8/10/14 at 6:38 pm to
Posted by auggie
Opelika, Alabama
Member since Aug 2013
28366 posts
Posted on 8/10/14 at 6:38 pm to
not much, if opening a real money maker, I think a cheap place, managed well is the way to go.

When you have the big bucks, then try that fancy place, if it fails, what the hell..
Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
143087 posts
Posted on 8/10/14 at 6:39 pm to
The food snob room is down the hall, turn right, third door on the left
Posted by AUin02
Member since Jan 2012
4283 posts
Posted on 8/10/14 at 6:42 pm to
quote:

Drink profits are insane


Profit margins on drinks are way up there.

That large coke you just bought? Costs a few pennies for the establishment to provide. You pay a few dollars for it. It's why upsizing a drink is just .25, the extra cost is essentially nothing so it's purely profit padding to up sell.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
34293 posts
Posted on 8/10/14 at 6:51 pm to
I know I'll get a bunch of OT bullshite but I'll answer this for those who are curious. My average profit is $1.07 per guest. Now the first thing some will say is because I work at a trashy restaurant that isn't worth a shite. Click on the next thread please. There are a lot of other costs associated with running a restaurant. It's not food, labor, and utilities. My store is extremely efficient when it comes to food and labor. Restaurants do shoot for the 30% mark and I average a 27%. The labor mark is usually 14% and I'll run an 11-12%. What's making margins shrink are things like workman's comp, liability, and unemployment. Now the one thing that is starting to erode my profit margin are the guests themselves. The demands of the market are lowering profit margins and raising the amount of time you sit there waiting for your food. I've been tracking the amount of what constitutes special order for us. These usually cause us to use extra product in an effort to satisfy the guest. They also creates more steps in making an order and longer ticket times. That's a different story though.
Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
143087 posts
Posted on 8/10/14 at 6:55 pm to
Posted by yellowfin
Coastal Bar
Member since May 2006
97811 posts
Posted on 8/10/14 at 6:56 pm to
I'm sure glad I'm in the boiling crawfish business and not the full service restaurant business
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
34293 posts
Posted on 8/10/14 at 6:58 pm to
It's rough. A lot of moving parts and you have to rely on employees that are notoriously unreliable. I've said for a long time that bad service usually starts in the home.
Posted by Fewer Kilometers
Baton Rouge
Member since Dec 2007
36196 posts
Posted on 8/10/14 at 7:01 pm to
quote:

No they're not restaurants, and I wish people like you would spend their ebt credits on something other than poboys and forties. Some of us pay for that through taxes.


You buried the punchline. You should have led with this.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
120022 posts
Posted on 8/10/14 at 7:09 pm to
quote:

but margins on drinks are insane


It's where the money is made. Same as on cruise ships.
Posted by LucasP
Member since Apr 2012
21618 posts
Posted on 8/10/14 at 7:25 pm to
quote:

You buried the punchline. You should have led with this.



I don't take criticism very well. You sir, just made a nemesis.
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167884 posts
Posted on 8/10/14 at 7:27 pm to
quote:

Yep, places like mcdonalds and taco bell make most of their profit from drinks.


Naw



Drink profits are the highest percentage wise but they make plenty off of burgers. A burger they sell for $2.00 probably cost them .65 to put together.
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167884 posts
Posted on 8/10/14 at 7:29 pm to
quote:

The hamburgers are just to get you in the door



Nope


Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
143087 posts
Posted on 8/10/14 at 7:36 pm to
Could you interpret that chart that for me? Some items are apparently priced by the single, while others it sweems are by the serving.

And it gives Chicken patty as .66 and french fries as 3.44.
Posted by bigberg2000
houston, from chalmette
Member since Sep 2005
70128 posts
Posted on 8/10/14 at 7:41 pm to
I am guessing the fries are priced by the bag.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
34293 posts
Posted on 8/10/14 at 7:42 pm to
The fries should be per bag at that price. Everything seems to be per unit. The packaged product part is per. I've gone over something like this when my girls drop straws and wet naps on the floor.
Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
143087 posts
Posted on 8/10/14 at 7:54 pm to
so how big is a bag of fries at a cost of $3.44?
Posted by biglego
Ask your mom where I been
Member since Nov 2007
76816 posts
Posted on 8/10/14 at 7:59 pm to
I didn't realize so many pokes with shitty taste were in the OT
Posted by Pirate Diver
Dutchtown
Member since Jan 2013
976 posts
Posted on 8/10/14 at 8:16 pm to
All hail Lucas
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167884 posts
Posted on 8/10/14 at 8:18 pm to
quote:

so how big is a bag of fries at a cost of $3.44?



The ones I used to buy at my gas station were 5 lb bags IIRC
Posted by GrantTheFan
Baton Rouge
Member since Nov 2010
336 posts
Posted on 8/10/14 at 8:22 pm to
Jmarto knows restaurants. At the end of the month, if 5% of gross sales ends up being profit, it was a pretty decent month. People not on the ownership side of a restaurant have no idea how easily food costs can screw you if you're not on top of it.
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