Start a Restaurant Business - Menu Planning and Pricing

Most people don't realize how much work andfor wages and other overhead. Or you may want
thought goes into planning a menu for a newto use the 'Prime Cost Method' whereby you add
restaurant or refreshing an existing menu. Therethe cost of labor and food and add a percentage
is so much more to consider than the individualto allow for profit. If labor and raw ingredients
recipes and preparation of the dishes. You alsocost $6 you can add fifty percent for profit and
have to think about the type of restaurant youcharge $9. Your prices will depend on what type
plan to establish and the clientele that you areof pricing your level of clientele can comfortably
hoping to attract.handle. Restaurants that cater to upscale clientele
You've probably already decided what type ofcan charge more while family and casual dining
cuisine you would like to offer. Now you mustestablishments must keep their prices geared
choose whether you want to have a rotatinglower.
core of specialty dishes or if you want the menuYou may want to make your grandmothers
to provide consistency. Varying your menu meansspaghetti a feature of your menu but this may
you will attract more adventurous diners, whilenot be practical? Did she use special ingredients or
providing quite a few of the same dishes on acook the sauce for hours? These type of
consistent basis will keep the same customersconsiderations must go into the pricing and be
coming back for their favorites.considered when determining what dishes you'll
Pricing can be a big factor in the type of clienteleinclude in your menu.
that you attract and also on repeat customers.You need to make the menu both attractive and
One of the best and most enjoyable ways tofunctional. If you plan to have a dimly lit dining
make pricing decisions before you open up yourarea you should have the print a bit bigger on
restaurant is to do some market research byyour menu so people can see what they are
visiting your competitors. Inspect their menu,ordering. Will you have a special of the day that
sample their food, and see what works for themyou'll need an insert for or a special dessert
and you may learn more than you expect. Youmenu? These considerations can all affect printing
can examine their prices and see what kind ofcosts.
value or quality the offer customers for the price.The important thing when planning a menu is to
There are a few formulas for pricing menu itemshave enough variety to be interesting but not so
that will help you determine what to charge. Withmany choices that the diners are bewildered.
the factoring method, one of the more commonLaying it out in sections is very convenient for the
approaches, you figure out how much the dishcustomer and has been shown to be a favorite
costs to make and then triple that figure to allowformat of most diners.