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Discussion in 'Professional Chefs' started by jason jefferson, Oct 22, 2016.

  1. jason jefferson

    jason jefferson

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    Hey Guys I am in the process of opening up a crab restaurant. Our main item will be the Kings bag offering 1 snow crab cluster, 1/2lb of large shrimp, Andouille sausage,  1 whole ear of corn and 4 b size potatoes in a bag with a garlic butter sauce. I have a question about pricing the menu; we plan on offering all menu items a la carte by the lb but I wanted to offer the above bag at a set price at around $25. My question is would you try to come up with a set price for a crab cluster varying in sizes or for go the set price altogether and offer only a la carte menu options.  The crab size will range for 8-10oz.  The reason I’m asking this is because I feel a 25 dollar bag for lunch is expensive and I was wondering if I should do a half bag splitting the crab clusters to lower the price.. Any advice would be greatly appreciated.

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  2. Guest

    Guest Guest

    $25 covering you for a decent cost %? a business needs to profit to stay alive. if the cost of the bag demands a $25 price then thats the price. no point in taking a loss, if you did a half bag would the costs let you sell it for 12.50? 

    your customers will be the ones to decide if $25 is a good price, your location and region will have its own rules compared to mine.

    where i live $25 bag you describe is cheap, if you feel that its likely that 2 people would share a $25 bag then the half bag offering may be ideal

    is there a similar restaurant offering in town that you can compare your pricing to? selling to tourists on Beale st i dont think this would be a tough sell, but if your customers are regular locals that only have 45min to stop by for lunch during the work day it may or may not be a problem, you know your market better than i 
     
  3. jimyra

    jimyra

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    First you are going at this backwards to figure your pricing.  Try this:

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    PRICE = COSTS + PROFIT DESIRED

    COSTS = Labor (including your own, if applicable) + Food + Utilities + Rent + Licenses + Tax reserve + Insurance + any other costs of doing business, including interest, depreciation, and all the hidden costs.

    Just a quick estimate your food cost will be over 50%.
     
  4. chefbillyb

    chefbillyb

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    I agree, the $25 is a bit high for lunch unless it was for 2 people. Seafood is always hard to keep costs in line. Take Red Lobster ( By no means am I saying your food is comparable to them) But, the Sailor's Platter for lunch is $11.49 for 2 fish, 5 shrimp scampi, 4 fried shrimp and a broccoli side. The reason I talk about the platter is most for the pricing point. Most of the other seafood items on their menu are just a few pennies under $10. I feel a good pricing for lunch would be trying to stay in the $8 to $12 range. All that being said your idea could be a bit different. The main reason why people may be coming is because of the King bag and the better quality of food offered. I do know when costing out a menu make it easy for the customer to understand it. Telling them a pound of Crab is $15 may be better to offer a 10 or 12oz Crab dinner with two sides for $15.People expect to pay more and also eat more for dinner......Chef Bill
     
  5. parallax

    parallax

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    He's far inland. Tennessee. I lived in Dyersburg, 90mi north of Memphis. That price for a non-chain, creole seafood and the rest might actually be a tad underpriced. I couldn't eat seafood in TN unlesss it came frozen from Walmart a la 7lb bags of tilapia.
     
  6. flipflopgirl

    flipflopgirl

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    WalMart?

    You are joking, right?

    Given the fact that there are so many sources for fresh, flash frozen (on the boat) shellfish, WM is at the very bottom of my list of purveyors. 

    Yeah it may be a tad pricey but good quality beats $$ every time IMO.

    Thanks to the internet, styrofoam, dry ice and FedEx  /img/vbsmilies/smilies/drinkbeer.gifthe folks who live far, far away from salt water can enjoy what used to be a treat reserved for the family vacation to the beach.

    mimi
     
    Last edited: Oct 25, 2016
  7. jay lancaster

    jay lancaster

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    How about a King's Bag for healthy appetites, or sharing (although I'd probably be just over $30 for what you list).

    Then the Jester's Lunch bag with a 3-5 cluster, 4oz of shrimp, 1/2 the andouille, 1/2 ear of corn cut in thirds, and the potatoes.  That'd still be an expensive lunch, but maybe your area will support it?  Still alot of food.
     
  8. jason jefferson

    jason jefferson

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    Thanks guys....Yeah Im torn, I just don't want to jump in and overcharge. When I base the food cost calculation on the  standard 25% it just  seems high. If I had another local restaurant to compare it  would be a lot easier to price the menu but we don't in the area. I was thinking along the lines of Jay's thought but just spliting the 10 and up's snow crab clusters up for a lunch portion.  I am in the process of calculating my figures by Jimyra formula. thanks again for the advice!!
     
  9. chefjess606

    chefjess606

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    Don't be afraid to have a loss leader. Obviously you need to have an overall food cost goal, but not everything has to be priced at that 25%. My menu varies from 7%-44%. In the end it all evens out and I get more customers because of it!
     
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  10. jimyra

    jimyra

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    This formula was a quote from another chef on another thread.  Not my original.
     
  11. pete

    pete Moderator Staff Member

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    This is very good point.  Sometimes restaurants get too percentage happy.  You can't look at just the percentages alone-its a good way to get a quick snapshot of how a place is running but it doesn't tell the whole story.  You will have some items that are a much higher food cost, but sometimes those items also bring in the greatest dollar amount-example I serve a chicken dish for $15.00 at a 33% and a Steak at $30 at a 50%.  While the chicken has a better cost percentage, the steak brings in more money ($10 for the chicken and $15 for the steak-I know this doesn't take into account all the other costs-just simplifying it).  A good menu will have a mix of those items, with Food Cost percentages ranging, but, in general, averaging out to your targeted number.  So don't be afraid to lower the food cost percentage on this to get them walking out the door if necessary, although, at even $20, it might be hard sell at lunch, depending on the demographics of your area.
     
    Last edited: Oct 29, 2016
    likes this.
  12. chefbillyb

    chefbillyb

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    Chefjess, I agree and did the same thing in my food services. The only thing I'm wondering about with his restaurant is if it's a destination type restaurant. If this is the case he could sell for a higher cost. In other words his method of cooking and offering  the Kings bag is the reason why people are coming in the first place. 
     
  13. jimyra

    jimyra

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    This is a synopsis of a menu planing course in culinary school.  It is very on topic and should be followed.  I would only use specials as a lost leader.  Then only as a way to cut loss on expiring inventory.  Say if I have some cooked rice in the walk in for 5 days and some chicken breast 5 days old (that I do not think I will sell at regular menu price) have a special of chicken fried rice.  This should not hurt your regular menu prices.  If many a coming for the specials you may still be damaging your bottom line.