"Bob Myers" > wrote in message
...
>
> <Uncle > wrote in message
> ink.net...
> > On Mon, 16 Aug 2004 16:52:33 GMT in
> > >, "Mrs. Fat Man"
> > > graced the world with this thought:
> >
> > >I agree with Vox; set your pricing according to what other restaurants
in
> > >the area are charging.
> >
> > and how is it, do you suppose, that they arrived at those numbers?
>
> A valid question, but it may not be the most important one
> here. The point is that they HAVE arrived at those numbers,
> and therefore set the market price. Now, if you can crank
> through YOUR numbers and come up with a way to sell at
> a lower price and still make an acceptable level of profit,
> that would be nice...
>
> Bob M.
>
>
Increase the percieved value of the product, which includes dining ambience,
and you are not neccessarily bound by "market pricing". The only way your
"formula" will work is to pay less for labor (meaning less skill), buy
cheaper materials (lower quality-- other than finding less expensive
suppliers and reducing waste) or remove or reduce recipe ingredients (or
menu items entirely), and down-size everything else, including fixed cost.
There are many markup formulas for foodservices. Some include bottom line
profit and loss figures to determine a food-cost markup ratio. If the
numbers don't jibe, cut your losses and get out!
I work as a sole operator, catering private meals and functions, so my fixed
overhead is negligable, making it easy to price services. As PENMART01
rather bleekly (though accurately) painted the picture, operating a
restaurant is not exactly the life I care to lead. I knew that long before
I got a culinary degree.