How restaurants maximize profit #shorts

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Restaurants run with extremely thin profit margins. The most successful ones have to do everything they can to maximize profit and stay in business. One way to do that is through "cross utilization of product" explained here by Kathryn Gordon of the Institute of Culinary Education in New York City. #shorts #entrepreneurship #restaurant

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[racecarrik]

What I learned: apparently it's financially savvy for a restaurant to use all the ingredients they buy. Who would have thought?

[yuvalfrank]

A note for non-Americans: by "Entree" they mean the main course. I found it quite confusing at first 😅

[ritokazoriv]

It’s so confusing an ‘entree’ is the main course in American cuisine

[GeneralNickles]

I have no clue how appetizers aren't the highest possible profit margin, because I have never seen an appetizer that I thought was a good value.

They are ALWAYS horrendously overpriced. You get some nonsense like a plate of "loaded nachos" that consists of 6 (cheap store bought) chips with watery salsa and some shredded cheese, and they charge you like $16 for it.

They HAVE to be making like 300% profit on appetizers. You can not convince otherwise.

[plasticwrapcharlie]

What they're talking about is maximizing efficiency, reducing food waste. It's strange that Americans discuss a normal relationship with food like it's Dickensian.

[jayolovitt]

The only aspect of this you haven’t accounted for is breaking down all those chickens. No restaurant I’ve ever worked at would do that because even with the most efficient chef or kitchen hand portioning lets say 30 chickens is going to take time whereas bulk cooking pre-portioned chicken is much quicker. This is also why few restaurants hand cut chips in house. Whole potatoes are cheap but the worker’s time (even if he’s being paid minimum wage or less) is not.

[oltedders]

When I worked in the restaurant business years ago, liquor sales were the money maker. If you could break even on the food, you could stay in business. A 5%-10% profit on food was considered a successful restaurant.

[guybrush]

Since WHEN are appetizers not insanely overpriced? Everywhere I've been to there's no WAY they're worth it compared to entree prices.

[nathanieljacobson]

I find it hard to believe that appetizers, being usually much smaller portions than an entree but similar prices, are so unprofitable

[Alacritous]

I think the person that made this needs to familiarize themself with what the term "Profit margin" actually means.

[kkzjtmx]

Please fix the graph. Make the axis start at 0%

[HeavyHardDrive]

Yesterday's meatloaf is today's sloppy joes.

[thebookwasbetter]

Desserts were always a pain when busy on a Saturday night. Low margin and people usually share them, and they extend the time guests stay which could be otherwise used by people eating steak.

[KisukePM]

If I had a 22% profit margin on my work/time I’d be living so well. Restaurants are an intense, grueling and unforgiving business. Tip your servers, tip your chefs and thank both. They put in more work than a lot of people realize.

[joefunk]

These margins seem way off. 2-3 alcoholic drinks cost as much as an entree while costing next to nothing in terms of ingredients. On a related note, an appetizer costs nearly half what an entree does while containing less than 1/4 the amount of food. Dessert is the only category I could see as having a lower profit margin than entrees. Also, all of the profit margins seem way too low, unless they include fixed costs like rent, which they shouldn’t.

[Toppu]

also underpay your waiters so that those would have to rely on tips

[LeetHaxington]

If appetizers are so low profit why is a tiny portion of like hotdogs on a stick like $30

[EdwardM]

Actually the mark up on beverages is more like 500 percent

[tHaRune]

Of course America also gets Entrees mixed up with the main course. This is what happens when you measure things in grains of sand and fingers per forearm, you end up in the wrong place.

[americanalghoza]

The scraps are the best part, love that chicken back meat