How do you price a BBQ menu?
Use the following equation: Price = Raw Food Cost of Item / Ideal Food Cost Percentage. You can slightly alter the price to make it a rounder or cleaner number. In the example below, you could change it to a number such as $14.50. Example: Say your ideal food cost percentage is 28%, and your raw food cost is $4.
Is a BBQ restaurant profitable?
Annual Income Based on average sales of $300 an hour for four hours a day, plus $5,000 a day over a weekend, earnings calculate to almost $34,000 a month. From this amount, you will have to pay all overhead, staff wages and purchase costs.
What is profit margin of a BBQ restaurant?
By general rule of thumb, Restaurants must make 100 to 200% gross profit to cover all operational costs. Net profit will likely be far lower at only 50% or so. But there are so many costs involved you must plan for a 100% markup (or more if expensive rent and affluent area) or you’ll end up barely making anything.
Why are BBQ restaurants so expensive?
Barbecue is expensive to do well. Mostly because of time. Good meat + time = high prices. On top of that, high demand barbecue can capture a premium through the strategic use of scarcity.
How much does food cost at a barbecue?
As a general rule, food costs in a typical restaurant should be about 25 percent to 30 percent. Anything higher and profitability suffers. This is the situation faced by many barbecue joints due to the rising cost of beef. Some face food costs upwards of 40 percent on brisket.
What’s the percentage of food in a BBQ restaurant?
In our BBQ restaurants we sell a lot of expensive meats like ribs, brisket and turkey. We typically run 32-34% food costs there but the catering side of our business runs as low as 25% so that gives a nice balance keeping us in the low 30’s range. Calculating food costs isn’t as scary as it might sound.
How much does brisket cost per pound in Houston?
The average price that a customer pays for brisket in Houston now is about $15 per pound (my observation). If we do the math, $6 per pound cost divided by $15 per pound selling price is a dangerous 40 percent food cost.
What are the operating costs of a restaurant?
Restaurant Operating Costs Breakdown You can count on the following monthly operating costs for your restaurant. Rent and utilities (electricity, water, internet, cable, and phone): 5% – 10% of revenue Food cost: 25% – 40% of food sales.