Should you get the guacamole on your burrito? A price analysis of your favorite foods
Matt Hawkins
21028

An interesting article but you budding restauranteurs, never base pricing on solely ingredient cost. I know the article is not promoting ingredient cost as the base for pricing but business people do this. What if we look at ingredient cost as a percentage of drug costs, doctor visit, software, etc. (“markups” on ingredient cost here are 2x ,3x, 10x of restaurant markup.) Again, interesting article but to tie ingredient cost to price…is just that, interesting…it is a factor in pricing.

I was in the contracting/service industry and some contractors actually price their job bids completely on product cost — not included: labor, overhead, profit etc. This was my competition — I loved’m. I based job bids on labor hours (plus parts AT COST, overhead, profit) because labor was my key constraint. I would imagine the key constraints on an eat-in restaurant is seat turnover/capacity….and labor in some markets. And no one needs to be reminded restaurants have one of the highest business failure rates.

Get guacamole on your burrito (don’t worry about the markup).

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