Great food, amazing produce, do your prices reflect that! Don’t give away your profit!

(16 /01 /2014)

I know, I know!  Every week I bang on about the key ingredients to running a restaurant well menu costing would have to be the MOST important and essential procedure in any hospitality business.  How do you know what price to sell it at if you have no idea on how much it costs you to actually make it?  Rookie error and one I am most certainly guilty of! I  literally stood at the door handing out $50 notes to everyone who came in.  I didn’t know what each menu item was costing me so in the end I was subsidising everyone who ate at my restaurant. Armed with the knowledge of product costs, matched against what you want to serve and what food % you want to achieve you are able to set the price. The industry average is 33% but you will quickly understand each of your menu items and it may be the case that you can adjust your percentages accordingly – for example an items costs $2 + 33% = $7.33 but you know the market will pay $9, thus giving you flexibility to have some little ‘wins’ and increased profits on lower cost items!  Be careful though not to over price!  Remember my $8 bowl of a handful of potato ‘sticks’.  There is a fine line between profit and the greed and the perception of value for money! With iChef Pro you can enter the ingredients, weights, measures and cost. Then  the system will cost your menu and set a sales price showing the tax value.  The end figure is the expected gross profit on each dish sold! The costings and details of any previously entered ingredients is stored in the system for review and future use, ensuring you don’t have to enter them again and the ‘card’ for that item will simply need to be updated with new costs.

The system will then update the cost if there is a change in the ingredient costs the benefits are;

  • monitors changes in menu costings
  • allows you to set your owns prices to see if a better returns can be made
  • alerts you to menu items affected by cost changes
  • as the menu coster has a list of ingredients used it will monitor slow selling items on the menu and ingredients that will be affected so wastage can be avoided.

Looking for more? Email us info@ichef.com.au

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