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CraigSchuler

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Posts posted by CraigSchuler

  1. In a restaurant, your highest single cost is food. Rent, labor, equipment maintenance, utility, paper goods, etc. will in total exceed food costs, but as a lone item food is it.

    In a sit down restaurant with table service food can't exceed 25% of gross receipts. ideally it should be less.

    If you're food cost is 25% and you give one away free, you are toast. There's no profit left after you pay labor and rent and utilities etc. They were probably losing money with that promotional deal.

    I can't remember which famous person said this (jokingly) but he said "we lose money on every sale but we make up for it in volume." smile.png

    Most restaurants have a food cost more like 30-35%. Profit margin in the food business is pretty slim.

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