r_ */ ?>

The Cost Of Labor And Menu Prices


farmer's market

These veggies are not going to turn themselves into your salad.

In the first installment of my series regarding restaurant prices, I discussed the additional costs restaurants must pay for food.  This might have been eye-opening to those outside of the industry who assumed that restaurants paid less for food simply because they purchased in volume.  This alone would hardly justify the mark up seen on restaurant menus as compared to the prices charged at a grocery store.  Instead, it is just one of many factors that should be considered if you wanted to make a true value comparison.

The second factor I want to shine some light on is the price of labor.  When most people cook food at home they do not consider the value of their time.  They cook for themselves or their loved ones without adding that cost to the price of the food.  Restaurants are not so fortunate.  Everyone you see working in a restaurant is drawing a wage from the restaurant.  This wage is paid in part from the amount you charged for your meal.  Today’s post discusses this in greater detail by explaining the impact of labor on menu prices.

About David Hayden

Restaurant industry professional helping small restaurants with their training, operations, and marketing needs. Author of Tips2: Tips For Increasing Your Tips and Building Your Brand With Facebook. You can also visit my other websites and blogs at: http://www.tips2book.com http://www.restaurant-marketing-plan.com http://www.themanagersoffice.com http://www.tipssquared.com http://www.foodieknowledge.com http://www.restaurantlaughs.com http://www.tipsfortips.wordpress.com