how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
When I worked as a cook, another guy and I got to create the specials sometimes. One daughter the owner explained the food cost was too high for the price we had set. He didn’t think the item would sell at a higher price so we had to pull some ingredients off, reduce portion a bit.
It’s usually a combination of setting a price that you think it will sell at with comparing to the cost at a ration of about 3:1 or higher. If you can’t get both those things to work, unless you expect other accompanying items to make up the margin, then it doesn’t make it on the menu.
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