answersLogoWhite

0


Best Answer

As a primary rule... you have to get your costs back, pay your people for their time and make money.

If it costs you 1.30 to make you imaginary hamburger after you have calculated the cost of the bun, the cost of the meat used, the cost of the pickles used, tomatos used and lettuce slathered on... You still have to pay the cook for cooking it, and the waitress for delivering it... and make money.

But to determine the cost can be difficult. A cost of a pitcher of iced tea averages about $0.06 in most of the USA based on 1/2 gallon of water (less than $0.01 but rounded UP to $0.01) and 2 tea bags at $).03 cents each) This pitcher can fill up to 8 glasses so each glass would cost only $0.008 cents. The average restaurant in Houston charges between $1.29 and $2.25 cents for Iced Tea.

The profit margin is enormus.

But that burger, which costs about $1.30 to make... usually sells for $5.99. That would mean a profit of $4.69. subtract the $0.25 for the waitress and $0.25 for the cook and you are left with $4.19 per imaginary hamburger.

The profit margin is still good, but in no way competes with the margins on iced tea!

My business Prof in college was very fond of the 165% profit idea. This idea espouses that you should charge 165% what something cost. That way you make a profit of 65% and make the money BACK for the original item. Most modern business seems to eye the 265% profit idea. What you choose should, hopefully, fall somewhere around those two ideals... Lets examine:

The hamburger that costs you $1.30 at 165% would sell for: $3.95 that is a fantastic price for a burger in Houston... sign me up! You have to sell a lot of burgers to make money however.

The same imaginary hamburger still costing $1.30 at 265% will run: $4.48 still a great deal... In the food biz, you want to round that up to the $#.99 so you make a little more and people think they still get a good deal. People will likely pay you $4.99 all day long for a decent burger. In non chain food establishments in my city (Houston) a decent burger plate runs $5.99 to $6.99, if you include the cost of the potato for the french fries! :)

User Avatar

Wiki User

∙ 2014-06-23 20:03:43
This answer is:
User Avatar
Study guides

What group was the Fourteenth Amendment designed to protect How did other groups use the Fourteenth Amendment to gain rights

What does this law tell us about what slavery in the United States was based on

Explain why American Indians are called "indigenous peoples."

Explain why Mexican Americans say, “We didn’t cross the border; the border crossed us.”

➡️
See all cards
4.83
☆★☆★☆★☆★☆★
12 Reviews

Add your answer:

Earn +20 pts
Q: How do you Calculate price for a menu?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is a bundled menu a fixed price menu?

yes


What is the french term for a fixed price menu?

'un menu [à prix fixe]' (the "à prix fixe" is implied and almost never expressed aloud) - 'à la carte' means that you pick every item up in the list and combine them. Add the price of each item to calculate your bill. - 'au menu, prendre un menu, manger un menu' means that you're picking the fixed menu, with a set price. In many restaurants you can change one item (say, the dessert) and still get the reduced price that goes with the 'menu' un menu (à prix fixe) more and more restaurants offer a menu - entrée et plat or plat et dessert (ie not three courses) for the same price (of course the apéritif, wine and coffee are not included)


How do you calculate Average selling price?

how to calculate average selling price


What is TDH menu?

Tdh is table d'hote; practically is fixed price menu, fixed menu.


French term restaurant menu fixed price?

un menu


What is a set menu?

A set menu is a limited menu offered for a set number of courses, at a fixed price.


What is a prefixed menu?

A pre-fixed menu is where , the items in it ( menu) have a fixed price and customers have no options to choose from.


Where can you find a price menu at McDonalds?

You are able to find a full McDonald's price menu online at mcdonalds.com. This menu also provides nutritional information about each meal available.


What does menu a partir mean in French?

Menu à partir de ... means "menu starting price is..." in French.


How do you calculate price of 3 ply carton corrugated box?

how to calculate carton price


What is du jur menu?

a menu de jour refers to daily specials or a set menu, or a small choice from the menu, at a set price


What is table d hote?

Table d'hôte Menu is a set menu with a set price.

People also asked