how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
My mother ran a local non-chain fast food restaurant for years. She used the rough estimate approach. She later sold the restaurant to friends of mine. They broke out the Excel and did a bunch of math to really get an accurate handle on the ingredients-cost of all the stuff and found some things she had been making bank on and other items we were surprised to learn were being sold barely at cost or even at a loss (just in terms of ingredients). They then used that knowledge to adjust prices to something that works for them.
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