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re: Interesting Farm to Table critique

Posted on 4/16/16 at 10:35 am to
Posted by lilwineman
Baton Rouge
Member since Dec 2008
1053 posts
Posted on 4/16/16 at 10:35 am to
Sodas and tea the markup is likely close to 1000%....desserts should be close to 800%...steaks (lowest margin typically) should be around 300%...fish slightly higher 350-400%....salads close to 700%

As a kitchen, you should attempt to run close to a 20-25% cost max, all goods included. I've known food costs when apps, salads, desserts are a consistent part of a program running more like 18-22% cost
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39242 posts
Posted on 4/16/16 at 11:24 am to
quote:

Is $.70 per person really how you look at profit or is 7% your net margin?



We have other streams of revenue if you looked at everything as a whole. I'm only talking about at the table for this thread. Now that .70 is at the lowest especially with O&G having a strong effect on our location. It will obviously be lower if you have less traffic and you're still spending x amount on workman's comp or x amount on repairs. That number was much higher when everyone was working around here. The number will also change depending on a few other factors. Back to the .70, yes that is low but I can still put money in the bank at that point.
Posted by DeltaHog
Member since Sep 2009
767 posts
Posted on 4/16/16 at 1:11 pm to
I'm a chef. Worked for a couple big name guys some of you may know from my past posts. I also own a vegetable farm and in the midst of opening my own restaurant. You cannot be "farm to table" and not have a farm directly connected to your restaurant. Also, people do not know how to eat seasonally. They want strawberries in October and tomatoes in December. If you are a true farm to table restaurant you're forced to cook seasonally and stay creative. Most people are just lazy and flat out don't care. For me my biggest issue with the farm right now is other farms buying produce from places like south Louisiana and Florida and selling it in my city. It's April and we are already seeing corn, peas and zucchini. I think that is bullshite bc we try so hard to be diverse in our crops and grow for our region. Lots of chefs are so caught in the political dick grabbing they think they are doing a farmer a service by putting the farm name on the menu but when it comes time to buy they don't or bitch about prices. Every chef I know will complain about needing more farms and needing more diversity but refuse to pay what it actually cost. Most big name chefs are barely in the kitchen and their sous are scared to death to buy new product and put something new on the menu without them so that specific vegetable we grew for that specific chef is wasted. It's a big game and at the end of the day, our farm, has developed an attitude that if you don't actually buy from us you better not have our name on your menu and we pick and choose who we sell to. We won't do business with liars and ego maniacs anymore and we don't care how many beard awards you have.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39242 posts
Posted on 4/16/16 at 1:20 pm to
Wow. I really thought the farms would be the one fighting to get on the menu. Good for them.
Posted by DeltaHog
Member since Sep 2009
767 posts
Posted on 4/16/16 at 1:35 pm to
We farm a very specific breed of corn, harvest, dry and mill it to order into grits and cornmeal on a stone mill. We have a lot of customers regionally and nationally. Our grits are different because the breed and the freshness. They have a specific taste and texture to them no other grit has. We have ran into restaurants buying our grits one time, putting our name on the menu then never buy again. So then people contact us and say they had our grits at so and so restaurant and they weren't that good or taste different I have make the restaurant take our name off bc they are not actually using our product. They are using a cheap inferior version which hurts our brand.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39242 posts
Posted on 4/16/16 at 1:43 pm to
Absolutely. It is a shame they go and pull that kind of crap. Where are you guys located?
Posted by lilwineman
Baton Rouge
Member since Dec 2008
1053 posts
Posted on 4/16/16 at 1:48 pm to
I have respect for you sir. You take pride that I expect from someone claiming to be "farm to table" and have repeated what I said. Support the farm, support their wares, accept the challenge of diversifying your menu, and think outside the box. A farm to table restaurant should have a menu that changes very regularly, if not even daily.
Posted by DeltaHog
Member since Sep 2009
767 posts
Posted on 4/16/16 at 1:49 pm to
Luxora, Arkansas

Our market is Memphis but we ship to folks all over. We have a retail line too. I'm possibly about to get heavily involved in a fantastic grain program with Bellgarde Bakery down in Nola. That guy has a great outlook and even better ideas. I have tons of connections down there and good opportunity to get heavy into the market very soon but we need to make sure our logistics are concrete.
Posted by DeltaHog
Member since Sep 2009
767 posts
Posted on 4/16/16 at 1:56 pm to
quote:

I have respect for you sir. You take pride that I expect from someone claiming to be "farm to table" and have repeated what I said. Support the farm, support their wares, accept the challenge of diversifying your menu, and think outside the box. A farm to table restaurant should have a menu that changes very regularly, if not even daily.


Thank you!

We recently had a helping hand in supporting a new all local seasonal grocery store. We helped with concept and we sell a majority of our produce to them. I truly believe if we want to educate people on how food grows and seasonal eating it starts with small stores like this one. People have to realize that growing food takes time, patience and tons of work. Tomatoes don't grow year round! And they aren't meant to be grown hydroponically. I guess that's just the food snob coming out in me.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39242 posts
Posted on 4/16/16 at 2:14 pm to
I've honestly had interest in owning a store like that. I think it would be challenging and fun. I also like the concept they have in Germany, IIRC, where they are zero waste due to no packaging or plastics.
Posted by Canard Noir
Houston
Member since Apr 2014
1397 posts
Posted on 4/16/16 at 2:22 pm to
Great post, you reaffirmed my thoughts from my initial post on the subject. It's just the latest food fad that most people don't bother to think through before they accept it.

I know I'm more cynical than most people, probably to a fault. I'm finding myself more and more thinking that the restaurant business is one of the most dishonest industries out there. Don't get me wrong, I love to go out and eat, I just really wish flat out lying wasn't so prevalent.
This post was edited on 4/16/16 at 2:23 pm
Posted by DeltaHog
Member since Sep 2009
767 posts
Posted on 4/16/16 at 2:34 pm to
quote:

I've honestly had interest in owning a store like that. I think it would be challenging and fun. I also like the concept they have in Germany, IIRC, where they are zero waste due to no packaging or plastics.


It's fun being apart of the growth. A former line cook of mine was hired to help turn produce that won't sell into soups, stocks and other food items they can make in bulk and freeze. He is certainly still learning the reins. I have to go in and help him at least twice a week but it's worth it. Teaching a young guy to think about food differently and require him to cook hyper seasonally. It's makes you a better chef.

The store itself is filled with only local products and regionally grown produce. It's essentially a farmers market. The margins on the produce itself is not very high. The gentleman that owns the store understands if he wants to be local and true to his mission he is going to pay a little bit more for produce.

LINK
Posted by Canard Noir
Houston
Member since Apr 2014
1397 posts
Posted on 4/16/16 at 2:36 pm to
I run a small business so I'm well aware of all the behind the scenes costs. While I sell an engineered product which is very different from your business, all the basic tenets still apply. Your debits and credits are just different than mine. I was just questioning the 7c per person number but it looks like you've cleared that up a little bit. I still find it hard to believe you can bank money with 70c per, you must have some insane volume...
Posted by windshieldman
Member since Nov 2012
12818 posts
Posted on 4/16/16 at 2:47 pm to
Always interesting to hear from a chef's perspective, hence one of my favorite F&D board threads from BocaJared called A Chef's Perspective. Seems like a really difficult, yet rewarding career.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39242 posts
Posted on 4/16/16 at 3:17 pm to
Food and non-alcoholic are separated from beer/liquor as well. It's just a bit different. I don't know those numbers off the top of my head to include them. Nonetheless, the margins are slim. Part of the reason why our business has such a high fail rate.
Posted by Canard Noir
Houston
Member since Apr 2014
1397 posts
Posted on 4/16/16 at 3:42 pm to
I can't argue with that. My whole beef with the Farm to Table concept was that so many places are claiming it without even being able to do it, nor should they even try. After all is said and done, restaurants run on extremely slim margins. Anyone with a brain should be able to see that it would be hugely expensive to constantly change your menu and limit yourself to what a local grower can provide and when they could provide it.

I can't imagine having to deal with the troubles of owning a restaurant. People suck and margins are low but I appreciate a good experience and it really can make people happy when it's done right. Hats off to all of you guys who choose to do it the right way...
Posted by lilwineman
Baton Rouge
Member since Dec 2008
1053 posts
Posted on 4/16/16 at 3:42 pm to
Beverage costs are increasing the more knowledgable people become. The day of super high wine markups is fading and cocktails are now more approachable in costs at places with only fresh ingredients at the places worth drinking. The labor of juicing, making syrups, tinctures, bitters, and shrubs...some people making all of their own cocktail ice. It's a big cost invested honestly.
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