Pricing for Profitability
Part Three of an article by Dave Ostrander www.bigdaveostrander.com
I'm embarrassed to share with you how I priced my first menu.
To say I plagiarized others would be pretty accurate. At that time,
I couldn't even define food cost, but back then things were
different. Mozzarella cheese was 42 cents a pound and a 16"
six item pizza sold for $ 4.00. Times change. So we must also.
I remember when I did my first real food cost analysis. It wasn't
a pretty picture.
I then itemized every pizza and determined how much money it cost to build the pie. Then, I multiplied that number times the food cost percentage I was trying to hit. No one hates number crunching
more than me. This was eight hours of drudgery. Yet, it had to be done, it was a management function. The results were frightening.