Many people want to get into the restaurant business when they really have no clue. Most don't make it past the application or business plan stage.
And up until 5-6 years ago, banks were way too willing to loan money to start a restaurant to someone with no practical experience. I had a friend who against all my hours of trying to talk him out or trying to start a restaurant, did so anyways. His adult children were able to rescue him when he lost it all.
The guy worked in the automotive industry his entire life, but somehow though he could own and operate a successful restaurant in the middle of nowhere with his wife cooking, and him waiting tables. She worked in an office environment he entire life so she also had no experience.
When I realized there was no changing his mind, I tried to help him by showing him food-cost percentage ratios, pricing strategies, the whole tamale! I even offered to volunteer my time to get him up & running properly so he would not be learning from his own mistakes. But he declined everything, and it only took 5 months before he realized it was a lost cause, and all that money was gone for good.
If anyone ever plans on opening a restaurant, just think of this little formula;
for every $1.00 that you put in the cash register, you get to call $0.04-$0.07 of that profit. the rest is going to other places.
Does anyone know a surefire way to make a small fortune in the restaurant business??
Start with a large fortune!!!
If I can help you with pricing your proposed menu by using industry standard food-cost percentage ratios, or forecasting labor-cost percentages, just ask. I actually enjoy the math, it keeps me on my toes. Just remember everything has an expected yield, and it is rarely ever 100%. you need to figure your yields, then re-figure your actual cost before trying to do cost-percentage based pricing structures.