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View Full Version : Restaurant Business - Advice from Paula Deen


Steve
12-13-2008, 08:12 PM
I was reading the Paula Deen book "It ain't all about the cooking," and I saw some advice I wanted to share with you all if you are thinking of opening your own restaurant one day.

She said that food costs should be no more than 1/3 of the gross receipts.

Other costs such as overhead, rent, utilities, salaries, insurance, equipment, pots, pans and repairs should be no more than 1/3 of the gross receipts.

Lastly profit should be 1/3 of the gross receipts.

So to sum that up.

33 1/3 % - food cost
33 1/3 % - overhead
33 1/3 % - profit

I hope this helps you out in your business planning.

Read the book for more info.