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Are You Undercharging At Your Restaurant?

Nov 09, 2013

 

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With over 25 years of hospitality consulting experience, there are certain facts we have learned about the restaurant business. It’s commonly understood that food costs and pricing strategies can make or break a restaurant. However, you may find it surprising that many independent restaurants are actually undercharging for their products.

The following data can be helpful to use as a price comparison. Take a look at your menu prices and compare them to the averages found at national chains. How do you stack up?

 

Menu Category

National Chain

Average Price

                     Salads                      $7.76
                     Soup                      $3.84
                     Appetizers                      $8.11
            Sandwiches / Burgers                      $8.49
                    Entrees                      $15.28
                     Pizza                      $11.29
                     Sides                      $2.62
                     Kids Meal                      $4.51
                     Dessert                      $5.70
         Beverage (Nonalcoholic)                      $2.21

 

To calculate the data, we took a sample of menu items within each of the categories listed above and found the average price of an item within the category. The national chains used to determine the calculations included Applebees, Chilis, Olive Garden, Red Robin, Red Lobster, Ruby Tuesday, Smokey Bones, Texas Roadhouse, Outback, Lonestar, Hooters, Buffalo Wild Wings, Wild Wings Café, Pizza Hut, Dominos, Papa Johns, and Panera.

 

Synergy Restaurant Consultants offers comprehensive restaurant financial services. Please visit www.synergyconsultants.com for more information.