I get it. Like two brothers who sell cars. One works at a used car lot
selling junkers and old trucks and the other sells cars at the lexus or
mercedes dealership. For every 50 cars the first brother sells, the second
brother only has to sell 5 and he still makes more than the first brother.
Need to get the school books out, but, I think we are talking about a
product mix. Upscale Steakhouses are a perfect example of restaurants
operating with slightly different expectations in regard to food cost %.
Where another type of upscale restaurant may try to run between 28%
and 33%, upscale Steakhouses will run at 48% to 55%. Overall the profit
margin may be the same, but, only because of the increased gross profit per
steak. Anyone out there work in an upscale Steakhouse? What kind of
numbers do you run. Not talking about Western Sizzler, but, Prime and
private line Beef. Would love to know. Also would love to know what
kind and grades of Beef everyone is using. |