Great Food Cost

Replies to This Discussion

Permalink Reply by Frank C on April 17, 2009 at 1:39pm

Breakfast, lunch or dinner?

Permalink Reply by Steve Paterson on April 17, 2009 at 2:26pm

I have always focused more on a plates RTN than its food cost percentage.

Let me give you an example...(using very simple math here)

You sell a steak entree' for $10
It costs you $4 for the steak and .50 for the side.

You have a 45% food cost...sounds really high, right? So what!!!
Every plate you sell puts $5.50 in the bank.

On the other hand, you sell a chicken and pasta dish for, say $7.
It's costs you $2.50 to produce the dish.

Your food cost is 36%...sounds much better...but you only put $4.50 in the bank per plate.

Which would you rather have? Sell that steak for $9.50 per plate and you're still kicking the Chx dish RTN!...not you mention, your customers perceived value is off the charts.

I didn't really answer your question, just trying to get you to look at food cost a little differently

Permalink Reply by Frank C on April 17, 2009 at 2:53pm

Oh, I thought you asked for food items with great food cost that still excite the customer. So, you answered it in your mind already, steak no matter how high the cost. Maybe Mcdonalds should sell an $8 Mcsteakwich.

Permalink Reply by Steve Paterson on April 17, 2009 at 3:34pm

He did, and I really didn't answer his question.

Permalink Reply by jeff on April 17, 2009 at 5:55pm

Frank C
Thank you for the post, actually I do look at my costing that way around here I like to say that we cannot take a percentage to the bank. I am new to FOHBOH and I was thinking that perhaps we (Anyone) could share specific ideas not general ones.
Perhaps not
One of the ideas we have done lately is to change from a pre cut 8 ounce tenderloin that we use for private events to running the same plate presentation with two four ounce medallions also pre cut
The 8 ounce costs $16.05 per pound
The two 4 ounce medallions run $12.95 per pound
A better cost cash wise and percentage
The sales are the same and the guests love it

Thanks for the post I was starting to wonder if anyone had read it

Permalink Reply by Michael C Brown on August 7, 2009 at 2:22pm

I look for value in the market place and use to my advantage... 2 examples a year ago I was able to purchase King crab legs @ 7.42 and sold the dinner for 19.95 that's margin. Currently the top sirloin market has bottomed and I am using it as a baseball cut, putting it on the rotissie & pairing it with shrimp also at the bottom of the market

Permalink Reply by Chef Len Elias CEC on August 8, 2009 at 4:58am

Pairing reasonably priced proteins with interesting, great tasting, colorful sauces and condiments works well. Add to that a good flavorful crust and you can really peak guests interest. Seafood is the biggest challenge with prices fluctuating so much I am in awe of anyone who runs a seafood restaurant today. Here is an example, if its a higher price point then you can get, try tilapia, catfish or whatever is running that week. Smoking anything can add an additional $2-$3 to the price and most customers wont blink an eye.

Barbequed Salmon with Roasted Yellow Tomato Coulis, Summer Succotash and Fennel Slaw Menu Price $19.95, 28% Food Cost and a whopping $14 profit.

Cost- Salmon-8 oz $3, Rub =.15, Sauce .40, Succotash .30. Slaw .75, wrap $1=$5.60