Author Topic: pricing  (Read 1273 times)

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Offline franwake13

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« on: October 18, 2010, 08:19:55 PM »
hey whats up? quick question.  how do you guys determine ur pricing on things? from chicken wings to pizza.
thanks alot!

Offline Tscarborough

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Re: pricing
« Reply #1 on: October 18, 2010, 08:55:07 PM »
Cost plus overhead plus profit?

Offline GotRocks

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Re: pricing
« Reply #2 on: October 24, 2010, 01:21:23 PM »
Typically it is figured as a cost percentage ratio. Choosing what cost ratio to use is very important. Higher labor items should typically have a larger multiplier of the cost to make up for the increased labor.

I am not going to go into how to do this, but I will simply say that most accountants who are experienced in the restaurant industry like tgo see a combined food/labor cost no higher then 55%
So if your food-cost is 30%, your labor cost needs to be at 25% or less for them to be pleased (meaning you making a profit)
Typically most projected food cost ratios will bee between 25-30% a food cost ratio of 40% or higher is mostly used for "Not For Profit" operations such as a members only country club
A skinny cook is not to be trusted!