how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
I can calculate the exact ingredient cost of every dish that is put out by the kitchen. We take that cost and bump up the price by x percentage to hopefully cover overhead but be competitive with everyone else in the area (if we have to. Say my place just got written up as a “best date night”, we can charge a bit more for date night items, but that takes more dedicated analysis than just calculating cost), and the difference is generally made up by the bar.
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