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?

> 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?
>

In general, pricing is set by the market. You should expect to charge what
similar restaurants in your area charge for similar items. Unless you can
demonstrate some particular benefit (convenience, superior flavor, unique
atmosphere, etc.,) few people will pay more for a similar item at one place
than another. On the other hand, you shouldn't charge less just because you
are very efficient.

> 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?
>

In general, pricing is set by the market. You should expect to charge what
similar restaurants in your area charge for similar items. Unless you can
demonstrate some particular benefit (convenience, superior flavor, unique
atmosphere, etc.,) few people will pay more for a similar item at one place
than another. On the other hand, you shouldn't charge less just because you
are very efficient.

> 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?
>

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?
>

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 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 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:
>
> 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:
>
> 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.

"Mrs. Fat Man" > wrote in
:

>
> > 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
>
>
>

Phone Tyson Chicken or Pick a supplier to a grocery whom you like and get
their contact info and order a mess of chicken parts ....usually found on
the grocery store label. Do the same for all your cafe supplies...easier
come tax time; better invoices, better prices.

--
Once during Prohibition I was forced to live for days on nothing but food
and water.
--------
FIELDS, W. C.

"Mrs. Fat Man" > wrote in
:

>
> > 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
>
>
>

Phone Tyson Chicken or Pick a supplier to a grocery whom you like and get
their contact info and order a mess of chicken parts ....usually found on
the grocery store label. Do the same for all your cafe supplies...easier
come tax time; better invoices, better prices.

--
Once during Prohibition I was forced to live for days on nothing but food
and water.
--------
FIELDS, W. C.

> 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 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

"Darkginger" > wrote in message
...
>
> > 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.

It would be impossible to "work it out" unless you know how much her other
overhead costs are. Three times the cost of ingredients might be way too
high for a meal in a run-down greasy spoon in some rural area and way too
low for a nice meal in a trendy Manhattan restaurant.

>"Peter Aitken" writes:
>
> sputters:
>>
>> 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.

WebTV proves they're already huge failures.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

>"Peter Aitken" writes:
>
> sputters:
>>
>> 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.

WebTV proves they're already huge failures.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

> 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 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 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.

Thank you so much, everyone, for the suggestions. I really appreciate
you taking the time to respond to my question.

We know how to cook, and how to cook quite well, and we are very good
with meeting and greeting the public and making them feel at home. We
are blessed to have the building in a good location, at a fairly
reasonable rent, and have been doing well with the other endeavors we
have going on at the building. It was when we decided to branch out with
the food that we ran into the snag because we couldn't figure out how to
price things.

Now, with the suggestions from you folks, we are getting a handle on
that.

Again, thank you so much.

Thank you so much, everyone, for the suggestions. I really appreciate
you taking the time to respond to my question.

We know how to cook, and how to cook quite well, and we are very good
with meeting and greeting the public and making them feel at home. We
are blessed to have the building in a good location, at a fairly
reasonable rent, and have been doing well with the other endeavors we
have going on at the building. It was when we decided to branch out with
the food that we ran into the snag because we couldn't figure out how to
price things.

Now, with the suggestions from you folks, we are getting a handle on
that.

Again, thank you so much.

>ARAVIS@webtv wrote:
>
>How do you go about deciding what to charge for food/menu items in a
>cafe?

Menu pricing is essentially a no brainer, charge the same as your
contemporaneous competition, ie. a similar cafe down teh road. A much more
difficult decision lies at the opposite end of the spectrum, what salary to
draw. For everything inbetween (fixed and variable costs) rent, insurance,
utilities, employee wages, fixtures, cleaning supplies, packaging, permits,
taxes, etc. I very strongly suggest you consult an Accountant... any business
people who do their own accounting have a fool for an Accountant.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

>ARAVIS@webtv wrote:
>
>How do you go about deciding what to charge for food/menu items in a
>cafe?

Menu pricing is essentially a no brainer, charge the same as your
contemporaneous competition, ie. a similar cafe down teh road. A much more
difficult decision lies at the opposite end of the spectrum, what salary to
draw. For everything inbetween (fixed and variable costs) rent, insurance,
utilities, employee wages, fixtures, cleaning supplies, packaging, permits,
taxes, etc. I very strongly suggest you consult an Accountant... any business
people who do their own accounting have a fool for an Accountant.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

> 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 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

"raymond" > wrote in message
...
> On Mon, 16 Aug 2004 16:46:23 -0400, "George" >
> wrote:
>
> >
> > 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.
> >
> Not only that, but this newsgroup is not the forum to obtain that
> education.

God forbid - an education, not here, no way.

LMAO... those "systems" of markup succeed mostly by luck and are one of the
main reasons restaurants go under. Go to a library or get a good menu
merchandising book like, "Menu Merchandising for Profit" and they will give
you serveral markup methods from the "no-method-method", which basically
bases pricing on competitors, to Texas Restaurant method, and profit/loss
factoring methods that include fixed and variable operating costs, not just
your food costs. Seriously.. at least look into the textbooks restaurant
management and culinary programs are using. And once you get a few months
sales data, analyze which menu items are killing you and ditch them. lol

If neither of you has experience in this area... at least do some serious
reading up. It could make or break your operation.

"Darkginger" > wrote in message
...
>
>
> 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.

LMAO... those "systems" of markup succeed mostly by luck and are one of the
main reasons restaurants go under. Go to a library or get a good menu
merchandising book like, "Menu Merchandising for Profit" and they will give
you serveral markup methods from the "no-method-method", which basically
bases pricing on competitors, to Texas Restaurant method, and profit/loss
factoring methods that include fixed and variable operating costs, not just
your food costs. Seriously.. at least look into the textbooks restaurant
management and culinary programs are using. And once you get a few months
sales data, analyze which menu items are killing you and ditch them. lol

If neither of you has experience in this area... at least do some serious
reading up. It could make or break your operation.

"Darkginger" > wrote in message
...
>
>
> 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.

LMAO... those "systems" of markup succeed mostly by luck and are one of the
main reasons restaurants go under. Go to a library or get a good menu
merchandising book like, "Menu Merchandising for Profit" and they will give
you serveral markup methods from the "no-method-method", which basically
bases pricing on competitors, to Texas Restaurant method, and profit/loss
factoring methods that include fixed and variable operating costs, not just
your food costs. Seriously.. at least look into the textbooks restaurant
management and culinary programs are using. And once you get a few months
sales data, analyze which menu items are killing you and ditch them. lol

If neither of you has experience in this area... at least do some serious
reading up. It could make or break your operation.

"Darkginger" > wrote in message
...
>
>
> 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.

I was just reminded of a night at the restaurant I was working. We had a
new chef that was heavy on the creative side, but weak on the cost
control... So we're slammed one particular night with a great special and
the owner comes into the kitchen all excited and says, "We're making money
now!!!" My responce was, "....or LOSING money faster than ever!" Gross
sales increased does not necessarily a profit make. If the item is costing
too much to produce at a reasonable selling price, you lose more the more
you sell of them. Even if you charge more than your competitor, you may
realize less profit. For all you know, their building may be rent-free.,
even if it is modern and in a high-rent district (but paid for long ago)

I was just reminded of a night at the restaurant I was working. We had a
new chef that was heavy on the creative side, but weak on the cost
control... So we're slammed one particular night with a great special and
the owner comes into the kitchen all excited and says, "We're making money
now!!!" My responce was, "....or LOSING money faster than ever!" Gross
sales increased does not necessarily a profit make. If the item is costing
too much to produce at a reasonable selling price, you lose more the more
you sell of them. Even if you charge more than your competitor, you may
realize less profit. For all you know, their building may be rent-free.,
even if it is modern and in a high-rent district (but paid for long ago)

> "zuuum"
>
>I was just reminded of a night at the restaurant I was working. We had a
>new chef that was heavy on the creative side, but weak on the cost
>control... So we're slammed one particular night with a great special and
>the owner comes into the kitchen all excited and says, "We're making money
>now!!!" My responce was, "....or LOSING money faster than ever!" Gross
>sales increased does not necessarily a profit make. If the item is costing
>too much to produce at a reasonable selling price, you lose more the more
>you sell of them.

Horsepucky. Restaurants can practically give food away at cost so long as
their bartenders never rest.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

> "zuuum"
>
>I was just reminded of a night at the restaurant I was working. We had a
>new chef that was heavy on the creative side, but weak on the cost
>control... So we're slammed one particular night with a great special and
>the owner comes into the kitchen all excited and says, "We're making money
>now!!!" My responce was, "....or LOSING money faster than ever!" Gross
>sales increased does not necessarily a profit make. If the item is costing
>too much to produce at a reasonable selling price, you lose more the more
>you sell of them.

Horsepucky. Restaurants can practically give food away at cost so long as
their bartenders never rest.


---= BOYCOTT FRANCE (belgium) GERMANY--SPAIN =---
---= Move UNITED NATIONS To Paris =---
*********
"Life would be devoid of all meaning were it without tribulation."
Sheldon
````````````

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:
> 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:
> 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

raymond wrote:

> On Mon, 16 Aug 2004 16:46:23 -0400, "George" >
> wrote:
<snip>
>>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.
>>
>
> Not only that, but this newsgroup is not the forum to obtain that
> education.

Why the hell not? At least it's relatively on-topic!


--
Steve

Whose cruel idea was it for the word "lisp" to have an "s" in it?