Most places I worked at just took the portion cost of the main protein and added 70% which covered the cost of the rest of the ingredients and a profit.
What you should be paying for at any restaurant is the talent of the chefs. Any chef who can take a humble ingredient and elevate to something magical will get my dollar. Paying a 500% markup on food costs is worth it. What I don't like is paying a 250-300% markup on wine but I realize without it restaurants won't make any money.
Hugely important to explain and show regular customers how this is done and be open to sharing this, customers respect hospitality business’s more being open and honest
For me I'd rather eat out once every month at a good family/independent restaurant/pub and spend £100 per head than eat out once a week and pay £25 per head at a chain. These chains are ruining the industry.
As a bookkeeper, I can definitively say rent and labour will be their biggest expense. The materials of the trade should be around 1/4 of all expenses.
Allegedly some Michelin 2* and 3* chefs run a cheaper place on the side to co-finance their star restaurant, since the ingredients for that are so expensive that it's barely profitable. Heard that about Roellinger.
"We zero right in and establish to the utmost precision how much the food costs, and then we say, 'Let's increase it by, ehhh, I dunno a few hundred percent.'"
The underlying cost of a cup of coffee in Australia is an average of 98¢. The average cost to the punter is $5.50. The 4-5x for hospo in general seems to match. It's not rocket science. You're paying for everything from payroll to bricks and mortar. It's worth it.
So whats happens if you have a slow day? Barely any clientèle walking into your restaurant? Do you cut on labor, do you do the food prep without it going to waste?
Interesting to see a fair few British chefs in the mix there! Would be great to see something similar in the UK in the future. But I wouldn’t blame the chefs for staying in Oz for the foreseeable 😆
@fallowchefs how much has this changed in the 2 years since you made this? Energy prices are so expensive now. Love the channel and everything you guys do – hope to see you soon at Fallow. Keep it up.
It's inspiring to see such humble people, succeeding, not gatekeeping, giving as much info as they can freely to anyone who will listen, and being so open about it too
an this is why it is best to cook meals that are simple but with high food cost at home 🙂 and visit restaurants to have labour intensive dishes, especially when you are craving just for a tiny piece
I don't get it. why not constant profit instead of constant profit margin? For dishes that take around the same time to make, markup could be constant instead of proportional to cost of ingredients, thoughts?
This is one reason I don't go to restaurants outside of special occasions where I don't have a choice. I can just buy the ingredients myself and don't have to pay myself labour. The other major reason is that most restaurant food is consistently bland and unimpressive.
Fairly simple. Food costs x 4-5. Guess that saves the cost of trying to microcost everything all the time (labour, rent, equipment, taxes, marketing etc).
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Most places I worked at just took the portion cost of the main protein and added 70% which covered the cost of the rest of the ingredients and a profit.
this guy is the money man behind the operation
Labour generated all the value that the profit comes from
What you should be paying for at any restaurant is the talent of the chefs. Any chef who can take a humble ingredient and elevate to something magical will get my dollar. Paying a 500% markup on food costs is worth it. What I don't like is paying a 250-300% markup on wine but I realize without it restaurants won't make any money.
Hugely important to explain and show regular customers how this is done and be open to sharing this, customers respect hospitality business’s more being open and honest
For me I'd rather eat out once every month at a good family/independent restaurant/pub and spend £100 per head than eat out once a week and pay £25 per head at a chain. These chains are ruining the industry.
As a bookkeeper, I can definitively say rent and labour will be their biggest expense. The materials of the trade should be around 1/4 of all expenses.
Allegedly some Michelin 2* and 3* chefs run a cheaper place on the side to co-finance their star restaurant, since the ingredients for that are so expensive that it's barely profitable. Heard that about Roellinger.
"We zero right in and establish to the utmost precision how much the food costs, and then we say, 'Let's increase it by, ehhh, I dunno a few hundred percent.'"
If you have a good quality product at a fair price, people will pay for it.
What's crazy is fast food chains delivering absolute garbage but jacking their prices all the way up.
I find restaurant prices surprisingly affordable given how most prices are 4-5x food costs.
The underlying cost of a cup of coffee in Australia is an average of 98¢. The average cost to the punter is $5.50. The 4-5x for hospo in general seems to match. It's not rocket science. You're paying for everything from payroll to bricks and mortar. It's worth it.
completely understandable❤
Respect 😎
Nah. For the market mix sure but your high end proteins have higher margin but more COGS. And your lower price items have lower COGS
Gosh he’s handsome 😊
So whats happens if you have a slow day? Barely any clientèle walking into your restaurant? Do you cut on labor, do you do the food prep without it going to waste?
being a big back i can tell you: pay the price for good food
lol 4-5x ? jeezus, maybe you should cook in bulk or something
Massive props for being so transparent with the costs.
Massive fan of you boys, don't change. Best food channel ever. ❤️
Interesting to see a fair few British chefs in the mix there! Would be great to see something similar in the UK in the future. But I wouldn’t blame the chefs for staying in Oz for the foreseeable 😆
25%. Nice job Chef! I was luck to get a 45% (before I took over) to a 34%.
i have always looked at it like this… eating out is a 10% rule…. on average…if you pay 100 quid at a restaurant. its 10 quid's worth of food…
@fallowchefs how much has this changed in the 2 years since you made this? Energy prices are so expensive now. Love the channel and everything you guys do – hope to see you soon at Fallow. Keep it up.
It's inspiring to see such humble people, succeeding, not gatekeeping, giving as much info as they can freely to anyone who will listen, and being so open about it too
I really really really need to find a way to go to London and eat at your place guys. Fallow seems to be one of the best culinary experience around!
We always aimed for 25% ingredients, 25% overhead, 25% staff, 25% profit. 4x your food costs is spot on.
"BuT i CoUlD mAkE tHiS aT hOmE fOr A qUaRtEr Of ThE PrIcE!"
Then do it. You're paying for someone else to do the work. Service isn't free.
Tidy.
Or… sell starters, desserts and drinks.
Wow that is true honesty. Well worth my money!
an this is why it is best to cook meals that are simple but with high food cost at home 🙂 and visit restaurants to have labour intensive dishes, especially when you are craving just for a tiny piece
I don't get it. why not constant profit instead of constant profit margin?
For dishes that take around the same time to make, markup could be constant instead of proportional to cost of ingredients, thoughts?
Fair play mate but as an ex-chef, I know you are lying through your teeth…
This is one reason I don't go to restaurants outside of special occasions where I don't have a choice.
I can just buy the ingredients myself and don't have to pay myself labour.
The other major reason is that most restaurant food is consistently bland and unimpressive.
Fairly simple. Food costs x 4-5. Guess that saves the cost of trying to microcost everything all the time (labour, rent, equipment, taxes, marketing etc).