Ever wondered how your favourite restaurant decides on the price of that mouth-watering dish you love? Or even how we make those decisions? Let's dive into the delicious (and sometimes messy) world of food pricing!
The 25% Target
So, chefs typically learn through TAFE to aim for food costs of 25%. That means the ingredients should only make up a quarter of the price you pay. But hold on—there's a twist! Enter the GST (goods and services tax), a sneaky 10% that's added to the price but hidden from plain sight. That's the taxman taking his slice of the pie.
Now, here's the kicker: that 25% target is more like a wishful thought. There's always food wastage, seasonal price changes, cooking mishaps, hungry and clumsy chefs—you name it.
Let's Crunch Some Numbers
Let's crunch some numbers. Say your favourite spot has a steak on the menu for $55. To break it down, the taxman takes his $5 cut first. Then, to get our 25% for food costs, we divide by four, meaning there should be $12.50 worth of deliciousness on your plate.
You might be thinking, "Wow, $37.50 goes to the restaurant? The owners must be ballin'!" Not so fast. Running a restaurant is no picnic. Wages gobble up 40% to 45%, and overheads (rent, insurance, etc.) munch away another 20-25%. Add it all up, and a restaurant doing well might be pocketing just 10% of each sale after GST. The reality is even grimmer than a burnt toast—many eateries actually lose money, with owners working hard for little to no pay.
"The reality is even grimmer than a burnt toast—many eateries actually lose money, with owners working hard for little to no pay."
Our Secret Sauce
As a bonus for sticking around, here's our secret sauce: We aim for a 33% food cost.
So, next time you're savouring a fab meal, remember: there's no such thing as a free lunch. Every bite has a story, and every dish has its price!