News for hackers. Stuff that matters.

A comment on Why Restaurants Are So Fucked. Parent comment

Re:Why Restaurants Are So Fucked by Ntrails on Saturday May 02, 2020 @09:11AM (#23051574)
The general rule that I've seen in the handful of UK establishments in which I've chef'd, is that food should be priced by ~tripling the cost of the raw ingredients. It's a pretty inexact science for anywhere small ish with a frequently changing menu - but it doesn't matter.

Alcohol also has a big markup, don't get me wrong, but it's not alone. And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee.

[ Parent | on HN ]
Re:Why Restaurants Are So Fucked by Mikeb85 on Saturday May 02, 2020 @01:23PM (#23053305)
Simply 3x-ing COGS might 'work', but you're leaving a lot of money on the table.

> And if you want to know the biggest "free profit" in a restaraunt - it's postmix soft drinks and tea/coffee.

No, soft drinks lose you money because it's often a replacement for more expensive alcoholic drinks. The typical soft drink here is $3, even a $6 beer will net me more gross profit than the total price of the soft drink. That's why craft sodas, kombuchas, home-made mocktails and the like are de rigueur nowadays...

Tea/coffee is 'free profit' in the sense it's usually an addition at the end of the meal and not everyone will order a digestif.

[ Parent | on HN ]