Doing my menu to be sent out to the printers…im really stressed about how I price my product. I have the ideals all laid out, im a gourmet establishment, with the high end product in mind. Here is where I run into problems, how much above food and packaging (boxes etc) costs should I set my prices? Does anyone price this way? Thanx!!
Look at my menu. I am running 27% food costs on average.
What you are asking is the decision businesses have to make to set their price point. I run an average of about 30% food costs, which means a prodct that costs me 3.00 to make I sell at $10.00.
I take the costs to produce the item and divide by what I want my food cost percentage to be: 3 divided by .3 = 10. I have a spreadsheet that tells me my food costs, and therefor profit margins, on every menu item and topping I sell.