Pricing Strategy

One of the biggest mistakes restaurants and food services make, is in how they price their food and beverages for sale.

The typical process for coming to a price for goods in the food biz is to choose a target food cost percentage, add up the recipe cost of a menu item, then divide the recipe by the target food cost percentage.

Though some food services survive while using this incorrect pricing method, the method itself contributes to the demise of many otherwise strong concepts. Pricing by cost percentage creates value on the low end of a menu instead of the high end, encouraging customers to purchase items that make your food cost percentage look good, but don't contribute enough gross profit dollars to pay labor, expenses, and net profit.

With email or telephone mentoring, and a few spreadsheet tools, we can show you how to properly price your menu by gross profit instead of setting yourself up for failure by pricing by a target cost percentage.

There are three ways Brandon can provide services to you:

• email
• telephone
• on-site

Whether you need Microsoft Word and Excel tools or marketing designs for your business, live advice or even a personal visit to your business, Brandon O'Dell is available to help.

Remember, every business owner is entitled to a FREE 30 minute telephone consultation with Brandon O'Dell. No obligations. Visit our contact page for contact information.