how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
Depends how many you plan to sell and for how long.
Weekend feature my math is: protein costs like $20ish per pound plus sides, 8oz portion of meat, like $13 after sauce and veg for cost, so probably sell around $40-45.
For a menu staple, I know how much that tuna steak is, down to the penny, and I’ve got it standardized with 2-3 different products they might substitute. I’ve added in the cost of the seasoned flour, the oil in the pan, the cost of the paper boat it’s served in, the cost of the onion and cilantro. If there are any sauces, I’ve batch costed those and done the math for the portion cost. I’ve got a cost number that is 7.32 with the Sysco tuna, or 7.44 with the substitute tuna. At 19.99 I know I’m making 12.55 per plate, and have a good par for how many I’ll sell each day.
If I’m putting it in multiple places, or selling thousands of portions a day, I might even go so far as to sign vendor contracts that lock in prices for chicken and other products for the next 12 months, while guaranteeing I purchase so many cases per year.
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