03-24-2015, 10:36 PM
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Too lazy to set a custom title
Join Date: Aug 2001
Location: portland, OR
Posts: 20,684
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Quote:
Originally Posted by woj
no one makes 22% profit margin in the "real world", especially not in the restaurant business:
"Full-service restaurants at all levels spent about 32 percent of each dollar on the cost of food and beverages, 33 percent on salaries and wages, and from 5 percent to 6 percent on restaurant occupancy costs. Profit margins, however, varied according to the cost of the average check per person. Those with checks under $15 showed a profit of 3 percent. Those with checks from $15 to $24.99 boasted the highest profit margin at 3.5 percent. Finally, those with checks of $25 and over had the lowest profits, at 1.8 percent."
source: The Average Profit Margin for a Restaurant | Chron.com
no matter how anyone tries to spin it, if you are making few percent profit margin (typical in many industries), and one of your costs, which happens to account for 33% of your expenses skyrockets, then you are completely fucked.... |
I guess we will find out. A year or two from now if all of these businesses have gone under or prices have skyrocketed then it will be clear that it is/was a bad idea. If they are still alive and thriving then we know it didn't affect them as feared. |
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