Turning a Profit

[thetincook]

An interesting article from NY Magizine from way back in June about how different business turn a profit. I've linked the hospitality sections. The other articles are a good read.

A Diner
A Soup Kitchen
A Pizza Place
A Four Star Restaurant

[kuan]

A diner that does $2.5 million is a rockin' diner.

[Goose]

Originally Posted by kuan

A diner that does $2.5 million is a rockin' diner.

Apparently not in NYC.

[kuan]

Oh they sell booze. Still that's a lot of covers.

Maybe it's not really a diner, maybe they have restaurant style seating. I just can't imagine a 60-80 seater doing that many covers.

[oldschool1982]

I really don't know how to comment on this one. Especially since I don't know nor have seen the operation. But for Grins and .....

Let's breat down the numbers. 2.5 million is only 49,000.00 a week. Not exactly bringing down the house. If he's open for B, L and D that only equates out to 2289.00 a shift in sales. Let's say they run a 15.00ppa, that is only around 457 people a day. Not exactly smokin for a NYC Diner. 200 menu items is a bit much too wouldn't ya say? Where I come from 200 covers can be seen in the early morning rush, 6-8am, not to mention the rest of the day.

[kuan]

I figured their average ticket would be about $10-12 for breakfast and lunch, and $20 for dinner but they'd do fewer covers for dinner. Still they gotta have a combination of a coupla things going. They need more seats than an average diner, maybe 150-200 seats, or they have to have an extended rush, or 20 minute turns, or a lot of take out.

[oldschool1982]

My thought was they had to have a tremendous take out business given the location. The one thin I did notice tho was the profit margine was 10%. Now I know it's not up there with some of the other industries like ummm errrr uhhhhhh..... Oil. where the margine is close to ummm...... a million % But 10% is pretty respectable.

Yet you are correct that inorder to increase sales and profit something has to be stilmulated. I'd go for the Take-out sales or add delivery with-in a certain area. But then again a 200 item menu. That may be exactly what is the problem. Granted they have a strong and loyal local clientele but any new visitors might be just a bit overwhelemed with that menu.

I'd say Scale down to the top 100, special the more requested items on a rotation (and not 20-30 at a time) and go from there.