- 12
- 11
- Joined Sep 23, 2009
I searched the forums (and elsewhere), and keep seeing the numbers 30%, 33%, 35% to hit as your food costs. UNLESS, the item with the 48% food cost is bringing you in $15/plate profit then the item with the 27% food cost that's bringing you in $8/plate profit.
That being said ... once you've settled in on your place, your overhead costs, payroll costs, cost of products, what is the math to figure out how much you actually need to sell of your product, and at what price, in order to stay in business? If you only sell one item and the food cost is 25% and you're making $100 profit on each sale, that's great according to the textbooks, but if your overhead exceeds what you're bringing in then you're still SOL.
I know the customers/market will pretty much determine the going rate of a product, and it's up to your advertising in order to get them coming into the door. But let's assume that we're in a perfect world and your prices are fair and you've got a steady flow of traffic.
How can I figure out at what price do I have to sell each product in order to cover my operating expenses? (I'm looking at this from more of a retail grocers point of view, so I'm thinking about thousands of product options, not 25 menu options.)
Thanks,
Christian
I feel like this should be easy to figure out, and I'm just looking right past the obvious answer.
That being said ... once you've settled in on your place, your overhead costs, payroll costs, cost of products, what is the math to figure out how much you actually need to sell of your product, and at what price, in order to stay in business? If you only sell one item and the food cost is 25% and you're making $100 profit on each sale, that's great according to the textbooks, but if your overhead exceeds what you're bringing in then you're still SOL.
I know the customers/market will pretty much determine the going rate of a product, and it's up to your advertising in order to get them coming into the door. But let's assume that we're in a perfect world and your prices are fair and you've got a steady flow of traffic.
How can I figure out at what price do I have to sell each product in order to cover my operating expenses? (I'm looking at this from more of a retail grocers point of view, so I'm thinking about thousands of product options, not 25 menu options.)
Thanks,
Christian
I feel like this should be easy to figure out, and I'm just looking right past the obvious answer.