> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

No offense, but why on earth are you opening a cafe when you don't seem to
know even the most basic stuff about running a restaurant? Sounds like you
are setting yourself up for a huge failure.


--
Peter Aitken

Remove the crap from my email address before using.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

I agree with Vox; set your pricing according to what other restaurants in
the area are charging. How much are most charging for hot wings? $5.95?
$6.95? Then find a regular supplier or wholesaler that affords you a
reasonable profit and has steady pricing. Please don't tell me you plan on
shopping at a standard grocery store! There are food distributors for that.

kili

wrote:
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?


The cost of the ingredients is a relatively minor factor in pricing.
You have to consider the cost of rent, taxes, wages, equipment,
utilities. A few cents per pound in the price of chicken wings (your
example) is peanuts compared to some of the other costs. And of course
those vary on your location and the size of the operation.

Some restaurant and cafe operators try to stick to certain price ranges
and adjust their menu accordingly. One local chef had small restaurant
where he offered terrific meals for reasonable prices, and his usual
deal was a three course meal, soup or salad, entree, dessert and coffee
for $21.95. He bought his produce in local markets and bought meat and
fish from local suppliers. The big suppliers have fairly stable prices.
When he got a good deal on something he would stock up and create a dish
for what he had on hand.

My nephew is the executive chef for a local arts centre. He works the
same way. He checks out what is available and fits it into the price
range that they offer. When he gets a good deal on something it ends up
as one of the three or four dishes offered.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

No offense intended and I am a fan of small businesses. Not knowing basic
business principles is the most common reason for small business failure.
It might pay to read a few business management texts or take a course or
two.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?

Most cafe's restaurants will use a commercial food purveyors such as Sysco.

The advantages are too numerous to mention such as portion control and
consistent quality.

http://www.sysco.com/

I think you will find there prices do not very as much as the stuff you get
at the stupidmarket.

Generally, however prices are based upon the "high" price and TPR'S
(temporary price reductions) can be passed on as "specials" or the
additional profit is kept.

Dimitri

wrote:
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

Find a distributor.

I once worked for a cafe owner, who failed miserably, within months of
buying a previously highly profitable cafe.

We'd had a basic but popular and profitable menu of simple egg dishes,
muffins, bagels, coffees & teas in the mornings and whatever I wanted to
make for a breakfast special with seasonal ingredients. Lunch was just
deli sandwiches made with high quality meats & cheeses on good breads,
and lobster rolls. We had no dinner menu, just the sandwiches available
and 40 flavors of ice cream.

The main problems we

Only buying things from wholesalers that could not be had at the
supermarket.

Running out of products on busy weekends due to short-sightedness. It's
Maine, 4th of July weekend is phenomenonly busy, great idea buy half the
usual stock.

Stocking up to excess on perishable items when they were on sale.
Bananas 20 cents a pound....even though there is only one menu item that
uses bananas buy 100 pounds.

Catering to the tastes of his family rather than the established client
base. Maybe one likes muffins from a cheap-o mix with those fake
blueberry colored dots, baked in muffin-top pans. The clients didn't
agree, they like the 12 dozen real muffins that I had previously turned
out 5 mornings a week for three years. And they liked those with
freshly brewed coffee, not with the old coffee that said owner was too
cheap to dump out. Fresh locally made bagels were changed to Lender's.
No one wanted to pay $1.75 for a lenders bagel with a tiny amount of
lite cream cheese. Full fat cream cheese was no longer an offering. At
the time 6 lender's bagels and 8 ounces of cream cheese could be had in
the stupidmarket for about $2. Eggs were nearly removed from the
breakfast menu, only egg white omelettes and egg beaters scrambled eggs
were offered. Lobstah rolls made with fat free mayo were a huge flop
too...that alone amounted to a gross loss of close to $500 a day.

Changed from the quasi-local Green Mountain Coffee Roasters beans, to
Folgers. That move alone, saving $0.02 a cup, cut sales by 2/3's.

Quality, quality, quality and prices similar to those of local cafes.

Jessica

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

No offense intended and I am a fan of small businesses. Not knowing basic
business principles is the most common reason for small business failure.
It might pay to read a few business management texts or take a course or
two.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

No offense, but why on earth are you opening a cafe when you don't seem to
know even the most basic stuff about running a restaurant? Sounds like you
are setting yourself up for a huge failure.


--
Peter Aitken

Remove the crap from my email address before using.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

I agree with Vox; set your pricing according to what other restaurants in
the area are charging. How much are most charging for hot wings? $5.95?
$6.95? Then find a regular supplier or wholesaler that affords you a
reasonable profit and has steady pricing. Please don't tell me you plan on
shopping at a standard grocery store! There are food distributors for that.

kili

wrote:
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?


The cost of the ingredients is a relatively minor factor in pricing.
You have to consider the cost of rent, taxes, wages, equipment,
utilities. A few cents per pound in the price of chicken wings (your
example) is peanuts compared to some of the other costs. And of course
those vary on your location and the size of the operation.

Some restaurant and cafe operators try to stick to certain price ranges
and adjust their menu accordingly. One local chef had small restaurant
where he offered terrific meals for reasonable prices, and his usual
deal was a three course meal, soup or salad, entree, dessert and coffee
for $21.95. He bought his produce in local markets and bought meat and
fish from local suppliers. The big suppliers have fairly stable prices.
When he got a good deal on something he would stock up and create a dish
for what he had on hand.

My nephew is the executive chef for a local arts centre. He works the
same way. He checks out what is available and fits it into the price
range that they offer. When he gets a good deal on something it ends up
as one of the three or four dishes offered.

> wrote in message
...
>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?

A friend (ex-restaurant chef who now runs a café) tells me that the formula
she uses is basically 300% of cost price. Sounded very expensive to me,
until I worked it out. She charges ?7.50 for a 'full Irish' breakfast, for
example (fried egg, bacon rashers, white pudding, black pudding, sausage,
beans and a grilled tomato, plus unlimited tea or coffee and toast with
preserves). She's lucky in that there's no competition within 12 miles, but
the café attracts workmen every day, who hate to pay over the odds, so she
must be getting it about right. Her prices stay the same through price
fluctuations in ingredients, only increasing (or, rarely, decreasing) when
there's a sustained trend in the cost price.

Hope that helps a bit!

Jo


---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.733 / Virus Database: 487 - Release Date: 02/08/04

wrote:
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?
>

Find a distributor.

I once worked for a cafe owner, who failed miserably, within months of
buying a previously highly profitable cafe.

We'd had a basic but popular and profitable menu of simple egg dishes,
muffins, bagels, coffees & teas in the mornings and whatever I wanted to
make for a breakfast special with seasonal ingredients. Lunch was just
deli sandwiches made with high quality meats & cheeses on good breads,
and lobster rolls. We had no dinner menu, just the sandwiches available
and 40 flavors of ice cream.

The main problems we

Only buying things from wholesalers that could not be had at the
supermarket.

Running out of products on busy weekends due to short-sightedness. It's
Maine, 4th of July weekend is phenomenonly busy, great idea buy half the
usual stock.

Stocking up to excess on perishable items when they were on sale.
Bananas 20 cents a pound....even though there is only one menu item that
uses bananas buy 100 pounds.

Catering to the tastes of his family rather than the established client
base. Maybe one likes muffins from a cheap-o mix with those fake
blueberry colored dots, baked in muffin-top pans. The clients didn't
agree, they like the 12 dozen real muffins that I had previously turned
out 5 mornings a week for three years. And they liked those with
freshly brewed coffee, not with the old coffee that said owner was too
cheap to dump out. Fresh locally made bagels were changed to Lender's.
No one wanted to pay $1.75 for a lenders bagel with a tiny amount of
lite cream cheese. Full fat cream cheese was no longer an offering. At
the time 6 lender's bagels and 8 ounces of cream cheese could be had in
the stupidmarket for about $2. Eggs were nearly removed from the
breakfast menu, only egg white omelettes and egg beaters scrambled eggs
were offered. Lobstah rolls made with fat free mayo were a huge flop
too...that alone amounted to a gross loss of close to $500 a day.

Changed from the quasi-local Green Mountain Coffee Roasters beans, to
Folgers. That move alone, saving $0.02 a cup, cut sales by 2/3's.

Quality, quality, quality and prices similar to those of local cafes.

Jessica

On Mon, 16 Aug 2004 11:47:41 -0400, wrote:

>
> How do you go about deciding what to charge for food/menu items in a
> cafe? It was a no brainer to decide on prices for bottles of water,
> juice, pop, etc. but now my husband is getting ready to open up the cafe
> part of the place and we're stuck on how to set prices. I assume you
> figure out what each item costs to make, then decide on a price, but
> what if your costs differ from month-to-month? Like, let's say chicken
> wings are 99 cents a pound this month, but next month they're $1.39 a
> pound. Is there a set formula for figuring this stuff out?

You never mentioned what type of restaurant it is...

Most of the neighborhood (sit down) eateries around here try
to offer an Early Bird special and keep their meat entrees
in the $11-15 range with pasta dishes mainly below $10
(unless it's seafood). I wish they would offer Late Bird
specials too.

sf
Practice safe eating - always use condiments