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How are you addressing your competition's pricing and portions?

FM Former Member
I'm getting ready to start pushing into new markets for catering, specifically office parties, and I've been looking at the BBQ restaurants in my area that I'll be working against. Some of them have very bizarre pricing, where their meat pricing on the plate is waaaayyy different than their meat pricing by the pound. Example: 8oz meat, 2/4oz sides, and bread for $5.95, but meat alone is $10-12 per pound. Anyone else notice this? Just curious.

But my real question is, have any of you noticed "deceptive" advertising in your area, and do you think it works?

What I'm calling deceptive advertising is a local restaurant that advertises a package containing 1.5# of meat, 1 rack of BB's, 3/pint sides, a half gallon of tea, and 12 hushpuppies as suitable for 8 people, at a cost of about $5.50 per person.

Working at it backwards with the same items, for eight people I would suggest 3# of meat, (I'll let the rack stay, but mine are STL) 1 rack of ribs, 3/qt sides, 2/gal tea, and 48 pups. I'll charge about $70, or $8.50 per person. The difference is that with mine you're actually getting enough food to consider it a meal.

I called this restaurant to check them out and they strongly suggest that you order extra meat and/or sides with this package if you're feeding heavier eaters. They pushed very hard!!! If I ordered what the guy on the phone suggested (additional rack $19, 2# meat $24, 1gal tea $6, 3 more PT sides $12, and 3 orders HP's $6) my order would have come to about $112, or more than double the original cost for their 8 person meal and about $14 per person.

This wasn't the only restaurant where I've seen similar packages. Is this type of packaging (that I consider deceptive) something you all have run across?, and if so do you think it works?

This package in question is just 3oz of meat and 2 BB bones per person. I don't know how folks in your neck of the woods eat BBQ, but around here I'd take more than that if I was catering a kinder garden class of 5 year old kids. I might cut back on my usual 4-6oz sides to maybe 2-3oz, but even children pack away the BBQ and hushpuppies.

I try to give people more credit, and assume they'll know how much they actually paid after the transaction regardless of what teaser price I lured them in with, and I also wouldn't want someone ordering a package like that from me and then realizing how inadequate it was after they ran out of food and drink after 3-4 people. It seems to me the downside is too steep, but it seems to be working for some folks and I just wondered what thought's you all had on the subject.
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FM Former Member
I do not believe nor do I practice gimmick advertising in my restaurant- I believe my customers like it that way

one of the biggest gimmicks ever is KFC selling chicken by the piece and using a 10 pc cut per chicken versus the traditional 8 pc cut used by most restaurants

another gimmick is the chains advertising a quarter pound burger as something special and large-all my burgers are hand weighed at 4 oz each and priced accordingly

btw-my current price for a 8oz meat 2 sides plate with bread is 5.70 and my pound price meat only is 6.25-with bread and slaw 7.95
but I haven't paid over .85 per lb for whole shoulders in over a year

Herman
FM Former Member
Hi hbeaman,
Your prices sound low, even for Snow Hill. But I'm all for that as long as your profits are in line. And that's a sizable plate for less than $6.00. The least expensive pound price I've seen in Raleigh is $7.25, but that's from a place with a "paid for" building. I should be so lucky. I'm at $1.05# for really high quality butts, or $.95 for shoulders, so it's not the raw cost that is pushing prices but the labor and rent.

Post the name of your restaurant and I'll come down and eat sometime. I used to get down to Farmville for Strickland's several time a a year, but I'd love to find some good eastern NC Que.
FM Former Member
TODD
BEAMAN'S is the name of my restaurant located on hwy 58 s just east of Snow Hill. It is a ramshackle 1600 sq ft that the locals love to eat home style comfort food. Due to my advancing age and poor health I only offer q on Fridays and Saturdays closed on Sunday. But you are correct it is quite a low overhead building.

btw Stricklands moved to Snow Hill after their placed burned about 4 to 5 years ago. They are now only open at lunch tues-friday and Sunday offering buffet style except for plate take out

If u make it to the restaurant be sure and let me know u are there snd I'll show u how the old hands make q using some new fangled toys mixed with the old ways

Herman
FM Former Member
Yes, we notice it all the time here. They sell low head price and run out of food when self serving the items.
We sell and fiqure in, extra food, people need enough, and even if they are serving themselves, drop and go style, self serve, they need enough food and don't know how much to order, sorry of it hurts when i tell you, $12.50 head simple 2 meat, 3 sides and dessert, drop and go, or you need srved for 1 hour, chafing for heat, and 2 people to plate, with utinsels and plates, well that is now $15.00 head, you will have food to go home or eat tomorow, but it is still $15 head, bottom line. Let them know up front the "real" cost of serving food. I tell my customers, when they ask , what can you do for $8.00 head, I say, a MC Rib and Fries, would you like Coke or 7 -up for a drink, be there in 12 minutes with the order, seriously, I tell them that and they laugh, LOL.
FM Former Member
Let me ask this another way: If you have two identical meals, one eat in(at restaurant) and the other catered, which meal should cost more?

I ask because I'm seeing Q-joints selling a dine-in plate with 2 meats, 2 sides, and bread for $9.99 + 1.89 for drink($11.88 total). But the same place will deliver(for free) for 25ppl or more, the same meal + tea + dessert for $8.99. (They'll drop to $8.49 at 100ppl, and $7.99 at 200ppl)

Not only does the $8.99 seem too low for what you're getting, but I have this weird bias where I think delivered food should be more expensive than the dine-in version. What say you?
R ribdogMember
Yes, but keep in mind that you are getting 25 or more meals sold at once rather than having those 25 people come to your location where you would have to have seats, waitresses/waiters, and so on.

Plus, if your lunch business is already filling your physical location fairly well, then this helps increase the revenues without having people waiting around for a seat.

And you also might be creating your customer base for the restaurant from customers who have never been to the restaurant but now know the quality of your food from delivery.

On a drop and go delivery business, I feel the cost should be less. But that is just me.
FM Former Member
"TG" Good luck on your venture into new target markets. Office parties are tough. But doctors and lawyers can be great for repeat business. Because you are dealing with small groups a surcharge may be necessary to make a profit. Hey, someone has to prep and clean-up-and its usually you.
My thoughts: Its more than a lunch and usually less than a dinner since the ladies of the office have a family at home. The spread has to look good. There are alot of white paper upgrades available. Finger foods are very popular and easily achievable. Several different types of small bakery fresh dinner rolls might be a thought. Instead of sides try salsa, sauces and other condiments so they can taste a little of everything. Feature your "Q" and depending on the meat don't be afraid to pre-sell excess from large roasts or wholes on a cost plus basis. Doctors love to give the stuff away and it gives them an excuse to take some home also. Fresh breads are almost as important as the protein. I like to throw-in something as fresh as possible and a green salad works great. A couple of different types of iced tea with chunks of fresh friut can make a big difference. Most importantly, don't worry what others are charging by making yours a little different. Remember that price equals volume, yield and cost. The bigger the gig doesn't always equate to a smaller per unit price. If you forget just one of the three you could be working for free....again. That's why I always round up. Plan the menu and test-good luck.
FM Former Member
Hi Findogak,

Yeah, I've been doing this for a long time, it's just that I'm trying to expand what had been a pretty small area of business, namely office deliveries. There is a Jason's Deli about 1/4 mile from where I live that did almost 1M in delivery business last year, and i decided that I might be missing out by not trying to get a piece of their pie, especially now that they have "homestyle" type food on their catering menu.

I've had a couple of pharma reps that order from me for the past couple of years. They say the Dr's love the food I bring because it's real(ie, comfort food) as opposed to the foo-foo stuff a lot of the caterer's do.

And I really like your pricing method, rounding up. I practice that myself, but I always like to know what the competition is doing, and how they're doing it. I'd rather stay home than work for free or $5 an hour.

That's why I question the lower pricing for deliveries. If your restaurant is priced fairly, why on earth would you sell for less AND deliver for free? I understand Ribdogs points, but I'd rather my charges reflect actual costs, and for my advertising to be measurable rather than hopeful.

Edit: I also don't charge a delivery fee for over $100. And you're correct that it is always me that preps and cleans.
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FM Former Member
TG: Offering something with added value and staying competitive is a constant battle. Great menu but way to many choices for me at least. Jason's catering does hit the nail-first impressions are probably the most important; fresh with lots of good looking/sounding choices. Only one problem-they now have a perceived standard; neat looking big trays of great tasting food that never dry-out and always look like that. You never know what's going to set a customer off and I for one don't want to give them a list. I always worry more about this type of deception because with bbq you can't get there from here. BBQ to me is lots of meat with no after taste (go cookshack), more sauce even though they sauce their own, and brunt ends and don't forget-meat juice. I measure a good eat by the napkins I use. Guys are great cause they'll blow through a "Q" and make you proud. But, I try to temper that picture when their are more women involved-you have too. You got to let them know before hand that this is a down-home belly-up and feed (don't use those words) to the extent that I offer cheap serving gloves so they can cover those hands and nails-its always amazing to me how many will use them. Remember the level of your clientele and target market. Once I get a hard count I give them one price no add-ons. The delivery, surcharge, etc., are all inclusive. I hate lists of charges but I'm keenly aware of what it takes. Please take note that this is IMHO cause I feel like I should say something from time to time since I get so many great ideas and always enjoy reading these posts. contribute
FM Former Member
quote:
Originally posted by Findogak:
You never know what's going to set a customer off and I for one don't want to give them a list.


I love this!

And I'm glad you posted. I don't recall having seen posts of yours before, but I'll sure look for them now. Nice to know other people have walked the walk.

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