how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
Rough estimate based on ingredient costs, time to prepare. I’ve heard about 3x is the average mark-up. Also, some items subsidize others — eg. a steak might cost restaurant $25 and they sell it for $50 (2x mark-up) while the baked potato that sells for $7 costs them 50 cents (14x markup). Starches, sides is often teh category where you’ll pay higher margins. Alcohol is another one… a $20 bottle of booze becomes 20 $15 cocktails.
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