how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
Well-run F&B operations definitely have formulas that consider the fixed and variable costs that go into each plate. This isn’t just about chain restaurants, also (and especially) independently-owned places need to find a version.
If you come up with a dish that calls for four nice big scampi and it keeps leaving the kitchen with five you will quickly kill your margins. Obviously you can adjust some so that the overall experience makes sense for a diner, but pricing is a business decision, not a gut feeling.
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