Opening and running a restaurant business can be difficult, especially if you don’t have enough information on how you should operate and what you need to make your business successful. There are lots of things to consider in starting a restaurant business like choosing the menu, appliance, kitchen equipment and setting fair menu prices. Of course, you can’t play the numbers by hand, as you will need to set a fair price for your food items. You must keep your prices fair for you and your customers.
There are many things you need to do before you go and set up the prices. Here are some of the few steps that will guide you in setting fair menu prices in your restaurant.
Steps For Setting Fair Menu Prices:
Approximating Cost
It’s possible to evaluate the cost of any given menu item by following a few simple steps, the first of which is to create a list of ingredients in the dish. This list should include everything – even the smallest or seemingly inconsequential things like simple condiments such as catsup or tartar sauce. You should also be mindful to account for supplies like oil, herbs and spices – it might not seem like a lot, but all of those small costs add up over time. Chefs should also be consistent in their plating so the meal can always be made for the same amount of money.
Balancing the Cost and the Profit
During this stage, you will be presented with a balancing act. At this moment, you already know the cost per day that you usually spend in your restaurant business, like how much your staff pay cost, electricity bill, and the cost of your dishes. The important thing you need to do is to know how much you want to earn per dish ordered. For example, if one dish costs $5 and $7 for overhead cost, then you need to sell your dish for at least $12 to help you pay the initial amount. But, if you want to earn your profit, then you should add some numbers in it to gain profit.
Lowering the Costs and Maximizing the Profits
Most restaurants have suppliers to help them save time from spending hours at the grocery store. But, if you want to gain more profit and lower the cost of expenses, then you could lose the supplier and check the market an hour a day. In this way, you will save some money from paying the supplier,yet you’re still offering fresh meals with fresh ingredients.
