Food cost in restaurants runs usually 20-35%. If a cook makes 10 dishes an hour (including prep), at $20 an hour that is $2 per dish. More upscale restaurants that do more elaborate prep will have a somewhat higher proportion of labor that goes into each dish.
But if the dish costs $14, the food cost is $4, the labor cost is $2, plus another $2 for servers and overhead/operating costs, then where does the other $6 go?
Like I get it, I don’t want to defend small business tyrants or anything but restaurants run on razor thin margins and are therefore one of the businesses most likely to fail. I have a family friend who runs a small restaurant and they talk to me about the struggles all the time. Sad thing is that they used to make more money as an accountant but quit that to run a restaurant as a passion project.
I found it really eye-opening when I visited a local chain restaurant in a small town, and everything was half the price as in the city. Because the operator owned the building.
My bosses wife is starting a bookstore and my boss was complaining about how expensive it was becoming to set everything up, turns out most of it is due to the landlord of the one property she found that they were able to afford. I was >< this close to getting him onboard with land reform
One thing that’s not factored into this are drinks. Those are basically pure profit. The margins can be tighter on food cause that’s how we also sell you sugar water and a shot of booze for $20
Okay but the fancy mexican restaurant my family always goes to for birthday parties makes the most amazing fuckin bloody maries, it’s like a whole salad worth of garnish and they always make mine nice and strong and spicy.
Oh they’re so fuckin good man, you just haven’t had a proper one. If you don’t get an olive, a pepperoncini, a celery stick and whatever else they add to the garnish depending on location, you have not had a good bloody mary
![[CW: meat] The horror. More people would buy more groceries, stay home and cook for themselves.](https://hexbear.net/pictrs/image/4b226b5d-403e-429a-aa2f-a359e564d54d.png){kind=link}
Food cost in restaurants runs usually 20-35%. If a cook makes 10 dishes an hour (including prep), at $20 an hour that is $2 per dish. More upscale restaurants that do more elaborate prep will have a somewhat higher proportion of labor that goes into each dish.
But if the dish costs $14, the food cost is $4, the labor cost is $2, plus another $2 for servers and overhead/operating costs, then where does the other $6 go?
A lot of it goes to the landlord.
Like I get it, I don’t want to defend small business tyrants or anything but restaurants run on razor thin margins and are therefore one of the businesses most likely to fail. I have a family friend who runs a small restaurant and they talk to me about the struggles all the time. Sad thing is that they used to make more money as an accountant but quit that to run a restaurant as a passion project.
I found it really eye-opening when I visited a local chain restaurant in a small town, and everything was half the price as in the city. Because the operator owned the building.
With most major chains, they’re the landlord which is why they franchise. So the operating costs go to some schmuck and the rent goes to them.
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My bosses wife is starting a bookstore and my boss was complaining about how expensive it was becoming to set everything up, turns out most of it is due to the landlord of the one property she found that they were able to afford. I was >< this close to getting him onboard with land reform
One thing that’s not factored into this are drinks. Those are basically pure profit. The margins can be tighter on food cause that’s how we also sell you sugar water and a shot of booze for $20
Okay but the fancy mexican restaurant my family always goes to for birthday parties makes the most amazing fuckin bloody maries, it’s like a whole salad worth of garnish and they always make mine nice and strong and spicy.
That particular cocktail may have more overhead and sounds good and I don’t even like bloody mary
Oh they’re so fuckin good man, you just haven’t had a proper one. If you don’t get an olive, a pepperoncini, a celery stick and whatever else they add to the garnish depending on location, you have not had a good bloody mary
Doesn’t do it for me. I don’t like tomato juice.