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Restaurant Menu Pricing: How to Set Prices That Boost Profits And Keep Customers

ChowNow

Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.

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New Year, New Deals: How Smart Operators Keep More Profit

Modern Restaurant Management

These chefs might know how to source the finest ingredients, but no one’s taught them how to negotiate the price of those ingredients or keep suppliers from quietly eating away at their profits. The reality is, these vendors make a healthy profit off every sale, and many are willing to negotiate if you know how to play the game.

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Restaurant Accounting: A Comprehensive Guide

7 Shifts

This includes tolls with payroll management features, sales and expense tracking, budget forecasting, and report generation, to name a few. Below are some key restaurant metrics you should be tracking for your restaurant: Cost of goods sold (COGS) The cost of goods sold refers to the amount it costs to produce an item on your menu.

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Restaurant Management: The Math

Modern Restaurant Management

This an excerpt from Bruce Nelson's Restaurant Management: the Myth, the Magic, the Math. Part Three – The Math. “The laws of nature are but the mathematical thoughts of God.” ” —Euclid of Alexandria. Oh yes, the math. This is usually the part that throws most restaurateurs for a loop. There is no math in ministry!”

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Mobile Ordering’s Role in Customer Retention

Modern Restaurant Management

The term table stakes originates from poker and refers to the minimum requirement to be considered a player. Third-party services generally charge high commission fees which means while sales might go up profits won’t increase at the same rate. Set the Bar. Stay Connected. But these short-term savings come with long-term costs.

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15 Restaurant Metrics to Know and How To Use Them

7 Shifts

Break-even point. Sales per labor hour. Ideal menu price. Your CoGSs is an essential number to have when determining your menu prices, inventory and impacts your net profit margin. You can now determine what percentage this is off your overall sales to get a picture of your restaurant's financial health.

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Reporting Best Practices in the Restaurant Industry

Modern Restaurant Management

For example, basic point of sale (POS) systems or integrated restaurant management systems are useful digital tools that enable data reporting. For example, labor, sales, inventory, and customer relationship management (CRM) reports are some of the reports restaurants should consider pulling together.