quote:
Originally posted by Preston D:
[qb]So based on these prices most of the bbq places (which probably get better prices than $2.50 a pound really) charge about 100% markup on their ribs before labor, etc.
Preston[/qb]
Unless you're dealing with a very high volume trade, restaurants must maintain a "prime" cost which does not exceed 65%.
Prime cost = cost of labor & food per every dollar of sales.
Contrary to belief, restaurants do NOT get huge price breaks on the food they purchase. The babybacks I bought at BJ's for
$2.49 @ lb. would have probably been $3.00+ had I bought them from a meat purveyor, or SYSCO. My year-end profit usually runs 5% of sales...which means that if I can save 17% on my food cost by schlepping over to BJ's to buy baby backs, I do it. It's a "nickle & dimes" business.
The cost of labor is a major consideration too. Here in Vermont, the unemplyment rate runs under 2%...which means that I have to pay a dishwasher $10 @ hour. Meanwhile down in Florida & Texas, you can get all the dishwashers you need at minimum wage. A good cook might get $9 @ hr.
Bottom line...I put 1/2 rack of babybacks on a plate with fries and cole slaw. The customer also gets a salad, bread, butter, tablecloth, silverplated silverware, linen napkin, pleasing ambiance, a professional server, air conditioning if it's hot, heat if it's cold. The cstomer gets a bill for $16 and I earn myself 80 cents...maybe...so long as nothing breaks, they showed-up for the reservation on time so I could "turn" the table, and didn't steal anything such as the nice silverplated teaspoons which cost me $8.50 per, which lil old ladies love to stash away in their' purses
