how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
A restaurant might start at a price based on costs, but prices are usually more about selling the right amount of stuff than how much the stuff originally cost. If nobody orders a dish, and it’s still profitable at a lower price, they’ll lower the price. If nobody orders a dish, and it’s time consuming to make or otherwise unprofitable at a lower price, they’ll take it off the menu. If a lot of people order a dish, or they’re spending a lot of time on it in the kitchen, they’ll raise the price.
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