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re: Markups at restaurants/fast food

Posted on 3/13/25 at 3:52 pm to
Posted by Artificial Ignorance
Member since Feb 2025
1424 posts
Posted on 3/13/25 at 3:52 pm to
Suspect that is a tough business. Not just unit margins. Is about revenue per table (customer thruput and repeat customers), consistency in quality and service often in cut throat markets and high staff turnover.

Have heard a few pennies difference in unit butter cost will make enough difference for restaurants to switch vendors.
This post was edited on 3/13/25 at 3:53 pm
Posted by Supermoto Tiger
Baton Rouge
Member since Dec 2010
10482 posts
Posted on 3/13/25 at 3:54 pm to
quote:

The worst is tea. Good friend owns a restaurant and tells me with refills it’s under .10. Some places charge $3.00

It all averages out. The ultimate goal is to achieve a 27% food cost which allows enough to pay decent salaries and overhead cost..
Posted by Dixie2023
Member since Mar 2023
4616 posts
Posted on 3/13/25 at 4:06 pm to
I’ve read soda. At the cost of it today I ask for water now.

Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
37955 posts
Posted on 3/13/25 at 4:06 pm to
Dressings, toppings, and sodas for me. Low cost items to both parties that sell in high volume keep the overall cost down. I can maintain a 23-24% food cost that way
This post was edited on 3/13/25 at 4:08 pm
Posted by Shaun176
Baton Rouge
Member since Aug 2008
2917 posts
Posted on 3/13/25 at 4:12 pm to
Signature Cocktails
House Margaritas
Posted by GetmorewithLes
UK Basketball Fan
Member since Jan 2011
22226 posts
Posted on 3/13/25 at 4:17 pm to
Soft drinks are the highest profit margins in fast food.
Posted by N2cars
Close by
Member since Feb 2008
37963 posts
Posted on 3/13/25 at 4:22 pm to
Lower and mid-priced restaurants are shite now.
They all use the cheapest ingredients they can source.
Just horrible...
Posted by PurpleandGold Motown
Birmingham, Alabama
Member since Oct 2007
23999 posts
Posted on 3/13/25 at 4:22 pm to
Sodas/Tea/Coffee.

Everyone that's ever worked in a restaurant knows this.
Posted by PurpleandGold Motown
Birmingham, Alabama
Member since Oct 2007
23999 posts
Posted on 3/13/25 at 4:26 pm to
quote:

And if talking about a restaurant with a bar, the bartenders aren't paid shite, they make tips, the kitchen staff is paid more. It cost you more to employ the fry guy.


What?

When I was a bartender, I wouldn't work for anything less than 20% above minimum wage. Waiters got $2.15 and tips. I was getting $10 and tips. Bartenders are quasi back of house in restaurants, so they get paid a full wage. They are making drinks for the whole restaurant and managing a bar. No one is doing that job for the tips they might get on a slow Tuesday.
Posted by armsdealer
Member since Feb 2016
12273 posts
Posted on 3/13/25 at 5:53 pm to
It's 100% the below market labor rates for most of the staff.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
76373 posts
Posted on 3/13/25 at 5:56 pm to
For Canes like 15 years ago, it was soda, then coleslaw, then canes sauce I believe.
Posted by Benne Wafer
Member since Jan 2015
455 posts
Posted on 3/13/25 at 6:46 pm to
quote:

Said they make little off burgers, but made a killing on fries and drinks...especially when you supersized them

My kid has greenlight and I saw a charge to McDs a couple of weeks ago for $7.47. Asked what she got- two medium fries. That's it. For $7.47!

Growing up we were a water family the rare times we went to a restaurant. Told myself that when I have kids, they would be able to order whatever they wanted. And that was true until the last few months when we realized our usual places were now charging $3.50 (or more) a drink. We all get water now.



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