Question for anyone who owns/runs a cafe/restaurant

[rasmus]

How do you work out how much things on the menu will cost?

[DisneyStacey]

We usually work to around 70-75% gross profit on food items.
(Remember to include ALL the ingredients in your costings - including seasonings - it all adds up!)

There is a really good article from The Caterer which you may find useful.
thecaterer/articles/...costing-a-menu

[Hootietootie]

I don’t own one, but do manage. We try to stick to the 70% margin. A few things we’ll get higher and we have one item that only gets 68% but that’s the only thing(the higher stuff more than makes up for it)

[DisneyStacey]

Originally Posted by Hootietootie

I don’t own one, but do manage. We try to stick to the 70% margin. A few things we’ll get higher and we have one item that only gets 68% but that’s the only thing(the higher stuff more than makes up for it)

See more...

This is a good point also.

There are often a few dishes we will take a lower margin on due to high ingredients cost and we don't want to overprice so it doesn't sell. But also dishes we put a higher margin on due to low ingredient costs to balance things out.

[mitch84]

My husband has a sandwich shop.
He doesn’t just look at margins, he compares to other competitors in the village etc.

He tries to keep his high margin things cheap, so like tea, coffee he charges only £1, as even with the take away cup, tea bag and milk it costs him under 10p to make. But he uses good tea bags/coffee in the hope that workmen will come in for teas etc as it’s cheap.
With regards to his breakfast sandwiches, he looks at competitors prices, slightly undercuts them, but then puts a lot of effort into making his bread nice, good quality sausage/bacon etc so people will come back
It seems to work, he’s busy and gets a lot of repeat custom. He’d rather keep his shop full than insist on a certain profit margin

[mitch84]

He’ll sell extras and drinks quite cheap too, crisps and chocolate bars 50p and cans, bottles of water etc £1, which is a similar price or lower to the village shop etc, to save them going to the shop to buy those things after his sandwiches. So therefore people pick up loads of these extras, and they are quite low cost, and very easy sells, nothing needs cooking etc etc