There is a fine line between setting a price for a particular menu item where a potential customer will either feel like its a good value, or its to high for what you get. Many restaurants “over-portion” to help the “good value” aspect of their customer’s experience, taking the focus off of what you as a guest paid for that particular menu item.
Average food costs in the restaurant industry range from 21% – 25% in fast food, 28% to 34% in full service casual, and upward of 40% for fine dining. Suppose you own a full service casual restaurant in your hometown, and want to serve whole – live lobsters on your menu. Wholesale costs for live lobsters is $ 8.95/lb and each lobster weighs an average of 1.25 lbs.
Based on what you’ve learned in chapter 7, what is your personal philosophy on menu pricing vs. profit and what would you charge for a 1.25 lb lobster on your menu (assume its a la carte).
Instructions: Your initial post should be at least 250 words.
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