Pricing Advice

I'm finally ready for my inspection (failed my original one due to having a 2 compartment instead of a 3 compartment sink but I got that taken care of now) so I should hopefully be opening up within the next month, but I'm still undecided on how to price my item, if I'm selling myself short or what.

I'm in Louisiana, and overall the economy is better than most states. I'll be hopefully operating at a boat launch on the weekends to start, probably hit up  a local bar on Thursday - Saturday nights that's always packed, and eventually I hope to get set up by some chemical plants that have tons of workers with the only close place to eat being a convenience store.

Anyway, I ran some very rough numbers on my production costs based on the prices at Sam's, and most likely overestimated a little bit.

I was orginally thinking of charging $2 for a dog, $3 for my meatball things (4 meatballs in a hot dog bun topped with parmesean and mozzarella. They're great, they've been a huge hit on my test runs), $1 for drinks and $1 for chips/candy bar.

Anyway, here are my rough estimates of production costs. Even though it won't be the case, I just assumed people would get every topping/condiment possible on everything, just to get what I guess would be as low as my low-end numbers could be. Like I said, the numbers are probably a little over what they'll end up actually being, since for example I don't know how many "servings" (according to the nutrition label) of mustard would actually go on an average dog, etc., things like that. The Snickers and Hershey thing are those variety pack candy boxes, but I just put those down to keep it simple. I'll be using Nathan's dogs, and premium/name brand everything. French's mustard, Heinz or Hunt's ketchup, etc. I really want to stay away from the cheap stuff and want my stuff to be as top quality as possible. Obviously I want to price my stuff to sell, but I don't want to price it too low where people might think I'm serving some cheap garbage.

But anyway, based on the numbers below and where I'll be operating, do you think my prices are too low or do they seem about right? If too low, what would you suggest I raise them to? I'll probably raise them $1 or so when I hit the bars, since drunks don't mind spending money, but I'm treating that as the exception for now.

I'm also planning on serving Chicago style dogs, probably minus the poppyseed bun at least for now, but I didn't price pickles, tomatoes and sport peppers yet, but I was thinking of charging $1 more for Chicago dogs than whatever my regular dog price is.  I actually tried my first Chicago dog a few weeks ago and had no idea how awesome they are. People at my last test run were going crazy over them too and are still talking about how good they were.

Hopefully the formatting on this comes out right. Thanks in advance for any advice :)

ROUGH ESTIMATES ROUNDED UP

PROFIT SUMMARY

Hot Dog:    0.96
Meatball:    1.40

Coke:        0.67
Water:        0.85

Chips:        0.77
Snickers:    0.53
Hershey:    0.50




SPECIALS:

2 Dogs, Coke, Hershey Bar

Menu Price:    5.00
Cost:        2.91
_________________

Profit:        2.09


2 Meatball Dogs, Coke, Hershey Bar

Menu Price:    6.00
Cost:        3.03
_________________

Profit:        2.97


1 Meatball, 1 Hot Dog, Coke, Hershey Bar

Menu Price:    5.50
Cost:        2.97
Profit:        2.53




Hot Dog Cost With Everything Possible

Hot Dog:     0.53
Bunny Bun:    0.19
Mustard:    0.04
Relish:        0.05
Ketchup:    0.03
Mayo:        0.04
Jalapenos:    0.05
Onion:        0.05

Boat:        0.02

Fork:        0.02
Napkin:        0.01
Gloves:        0.01
_______________________

Total Cost:    1.04
Menu Price:    2.00
Profit:          0.96



Meatball Cost With Everything Possible

Meatball (4):    0.50
Bunny Bun:    0.19
Parmesan:    0.04
Mozzarella:    0.05
Mustard:    0.04
Ketchup:    0.03
Mayo:        0.04
Relish:        0.05
Jalapenos:    0.05
Onion:        0.05

Boat:        0.02

Fork:        0.02
Napkin:        0.01
Gloves:        0.01

_______________________

Total Cost:    1.10
Menu Price:    2.50
Profit:        1.40


_______________________________________________________________________________





Cokes       

Cost:        0.33
Menu Price:    1.00
Profit:        0.67



Water       

Cost:        0.15
Menu Price:    1.00
Profit:        0.85



Lays Chips

Cost:        0.23
Menu Price:    1.00
Profit:        0.77



Snickers / M&M / Skittles

Cost:        0.47
Menu Price:    1.00
Profit:        0.53



Hershey's / Kit Kat / Reese's

Cost:        0.50
Menu Price:    1.00
Profit:        0.50

You won't be staying open long with those prices.
Cutting your own throat. Most of your food cost over 52-54%
You are looking at things wrong. what do you need to succend, most rest./ food est try for a 30% or lower food cost. Being on a cart has some advantagess. I run around 36-37%. try to stay away from 40% as much as I can. Where I live and expenses here can get by on 36%. You have expenses you have to meet plus a profit to you. 
Old but good thread
http://www.roadfood.com/Forums/tm.aspx?m=302555&high=running+the+numbers
 

I don't mean to sound harsh but where do you plan on working after you go broke selling hot dogs.

The age old rule is "times 3".  If you don't make your menu price at least 3 times your food cost you won't be around long.  You will have a lot of extra expense you have to allow for.  Try propane, insurance, license fees, sales tax, vehicle fuel, gloves, paper towels and a lot of others.  I figure my exact food cost, multiply x3 and round UP my prices to the next $.25.  By doing so, at the end of the year my NET profit (after ALL expenses) will be between 50% and 55% of gross sales.  If you're not making 50%, you're working for less than minimum wage.

RAISE YOUR PRICES !!!!!!!!!!!!!!

Mike S.

One meatball,dog,coke herseybar
cost $2.97
Vend $5.50
54% food cost
33% food cost $9.00 vend
 

We multiply food cost X 4.  then we adjust slightly up or down.  We buy from sam's too.  Prices include sales tax as well. Everything priced to nearest quarter.  I put together an openOffice spreadsheet with my prices & markups on it so that I just plug in weekly price increases/decreases to stay on top.  We can handle a fair amount of variation before changing $$.  Folks like what we offer and think they are paying a fair price.

I would drop the candy bars cause they are going to melt and people rarely buy them, I've tried selling them myself.

I would not buy your chips.

Hey Methais, Good luck on the adventure. I hope all goes well.
I don't think you will go thru .26 cents per dog for condiments. I would figure about .16 I would like to see your total COP "Cost of Product" "Food cost" be about .75 that way your cost is in line at 33%. I do full meals specials with a COP cost of $1.25 and sell for $4,75.......If you get your COP cost down you could sell Two dogs and a bev for $5 with a 37% food cost. Lower you food cost and raise you Dog price to $2.25. I would also get a  good   "CAJUN SAUSAGE" RAGIN CAJUN HOT LINK. top it with sauteed onions, bell peppers and Jalp .....If your working your cart on the boat ramp a good sausage would go well.
  The meatball if you figure .05 for cheese that means you are getting 50 portions out of a 1lb bag at 2.50 per lb. I pay .16 cents per 1oz meatball, What size are you using????????????????????????  They come in 1/2 oz and 1oz sizes.I wouldn't think people would load up the condiments on a meatball sand on a bun.
  One thing to remember is always look at the perception of value. If I could help in any way just yell. Its not easy doing these things if your new at this......................Good luck and have fun.......Bill 

Thanks for the advice folks. A few quick things though...

One meatball,dog,coke herseybar
cost $2.97
Vend $5.50
54% food cost
33% food cost $9.00 vend

Do you really think I can get away with a $9 pricetag for that? That seems a bit high. Not that I'm opposed to it if it's feasible, but I don't wanna price too high to where most people will see the price and then walk away.

I would not buy your chips.

Thanks. Any suggestions or anything constructive to add to that? Such as why you wouldn't buy them, and what would have to be changed in order for you to buy them?

I would drop the candy bars cause they are going to melt and people rarely buy them, I've tried selling them myself.

Maybe so. I was going to keep them in a cooler so they won't melt, but I'll probably give it a shot anyway at first and if they don't sell, I'll just take them home and eat them eventually and stop buying them. Probably just gonna buy 1 case to start out and see how they sell, but thanks for the advice.

So going by the x3 rule, I should be charging at least $3-3.25 for hot dogs (roughly $1.04 production cost assuming they get everything possible on it and I change gloves and stuff after every one, which are both unlikely to be the case), and at least $3-3.25 for meatballs ($1.10 production cost, again with everything possible on it)? I don't see myself being able to raise drink or chip prices beyond what they are now, and based on the x3 rule should I lower my chip cost? A 1 oz. bag isn't exactly much, but if I can get away with $1 then I'm all for it. I personally probably wouldn't pay that much for one, but I'd be fine with it as part of the package deal, but that's just me. I don't anticipate selling many chips individually anyway.

I'll probably charge $1-2 more for meatballs than whatever my hot dog price is (they come out to 12-13 cents per meatball).

Obviously I want to charge as much as possible, but not to the point where it will turn most people away.

They don't have any hot dog vendors around here, so I have nothing local to really compare prices to. They don't have any vendors like this at all around here actually.

I could probably fix a lot of this pretty easily by switching to a cheaper dog, but I really don't want to do that if possible, because Nathan's dogs imo are the best around, and everyone I've fed them to on my test runs said they were the best tasting dogs they ever ate, and I'm pretty sure they weren't just being nice, because I told them to feel free to rip on me if they don't like it. Instead they kept coming back for more.

Sam's has them for $85 for a case of 160. My next choice would probably be Ball Park, but I wasn't too crazy about them after eating Nathan's. But then at the same time, I guess it would make sense that since I'm offering a premium product, I should be charging a premium price. I'm just not sure where that "sweet spot" on the price tag is for that.

Anyway assuming I'm on the right track here and understanding you guys correctly, how much of a discount would you suggest for doing the package deal? Individual costs minus 50 cents or something like that? I'm guessing the majority of my sales will be package deals.

Sorry if this post doesn't seem very focused. I'm in a hurry and trying to get this typed out before I go to work. Thanks again for the advice so far :)

Oh yeah, I am planning on doing some sausage things too (probably Italian and New Orleans style), but I haven't priced any of that yet.

Damn, wish I could find Nathan's for $.33 each. They do have another Sam's not far from here though I'll check out, but they're probably the same price. I do remember someone on here telling me Sam's sells 160 for $80 too a while back.

As for the "specials", I was planning on always having them, at least for when I'm set up by the plants during the lunch rush. More of a lunch package than a special I guess. I probably wouldn't do that for if/when I set up outside the bars, and I'm undecided on the boat launch thing if I'll do it or not but I'll keep your advice in mind either way. The punch cards are a good idea though, I might roll with that instead since it gives people a reason to keep coming back more than a package deal most likely would.

As for people who don't care what the dog tastes like as long as it's cheap, they need to just stay home and eat nothing but ramen noodles and potted meat.

Gotta run for now but thanks again for the advice, and if anyone else wants to chime in, all the better.

Hey Methais, Its not always about percentage, and X3.If something cost you $3 you don't charge $9. If something cost you $2 you don't charge $6. The pricing in every area is different. Someone in New York may be able to get $3 for a Dog and someone else in Florida may only be able to get $2. The thing is you have to get your cost down. I wonder how important it is to serve a Nathan beef dog at a boat dock or work site in a small town in Louisiana. I would talk with a local meat market and do a good Local Sausage, Beef dog. I don't think Nathans is going to make a difference. I would think Cost and the best beef dog you can get within those costs. ....
 The pricing structure for the Plants will be different. The people in there are working people and can't spend $7 for lunch. I have a Cafe that caters to 1000 people. My pricing for a dog is $1.50 a burger is $2.25 Full meal deal $1.50 more. so for $3.75 they get a burger, sm fries and 16 oz fountain drink. I also do a Hot special for $4.75 that could be anything from Chicken fried steak, country gravy mashed potatoes and hot veg. With prices like I have I need to keep labor low, My cost low, and the selling price low so the Employees can afford to eat there. The thing you have to do is give a good value for a good price. Just do.t throw  aprice on something, understand why your doing it and is it a value to my customer. I think the working people at the Plant and boat dock will be looking for good dogs and good value. Give them both along with a smile and you will succeed

BillyB


Hey Methais, Its not always about percentage, and X3.If something cost you $3 you don't charge $9. If something cost you $2 you don't charge $6. The pricing in every area is different. Someone in New York may be able to get $3 for a Dog and someone else in Florida may only be able to get $2. The thing is you have to get your cost down. I wonder how important it is to serve a Nathan beef dog at a boat dock or work site in a small town in Louisiana. I would talk with a local meat market and do a good Local Sausage, Beef dog. I don't think Nathans is going to make a difference. I would think Cost and the best beef dog you can get within those costs. ....
 The pricing structure for the Plants will be different. The people in there are working people and can't spend $7 for lunch. I have a Cafe that caters to 1000 people. My pricing for a dog is $1.50 a burger is $2.25 Full meal deal $1.50 more. so for $3.75 they get a burger, sm fries and 16 oz fountain drink. I also do a Hot special for $4.75 that could be anything from Chicken fried steak, country gravy mashed potatoes and hot veg. With prices like I have I need to keep labor low, My cost low, and the selling price low so the Employees can afford to eat there. The thing you have to do is give a good value for a good price. Just do.t throw  aprice on something, understand why your doing it and is it a value to my customer. I think the working people at the Plant and boat dock will be looking for good dogs and good value. Give them both along with a smile and you will succeed

Good post BillyB!
 
You don't take percentages to the bank.  You take Dollars.  With that said Methais, there are many factors to consider when setting prices.  You have to look at total product cost (as Bill pointed out), competition, market conditions and potential, and TOTAL expenses (look at a sample P&L for a food service establishment for an idea).  Give close and careful consideration to pricing.  it can make or break you.  Also remember, you are investing in a business, not buying a job.
 
Best of luck.

Methais


Damn, wish I could find Nathan's for $.33 each. They do have another Sam's not far from here though I'll check out, but they're probably the same price. I do remember someone on here telling me Sam's sells 160 for $80 too a while back.

 
I think what he is getting is an 8:1 for .32, and what you are buying for .53 is a 5:1. Are you getting yours from the Cafe at Sam's?

You are investing in a business, not buying a job.


Man that phrase should be emblazoned on every new post answered here on RF Pro. More people than anyone knows get into the food business and quit because they don’t understand the difference. In fact at times I’m not sure I do. LMAO.
 
ARE YOU OPENING A BUSINESS OR BUYING A JOB?

Running a company and operating a business can be one way to take control over your life, or lose all control over your life! The Doctor of BBQ

Here is my food cost breakdown:

Nathans 4-1 dog- $2.75 @ FC 27.598%
Hebrew National 4-1 dog- $3.25 @ FC 28.98%
Boars Head Veal Brat 4-1-$4.50 @ FC 32.96%
Boars Head NC 8-1 dog-$2.00 @ FC 33.655%
Johnsonville Turkey Cheddar Dog$-2.75 @FC 27.552%

rickmalek


Here is my food cost breakdown:

Nathans 4-1 dog- $2.75 @ FC 27.598%
Hebrew National 4-1 dog- $3.25 @ FC 28.98%
Boars Head Veal Brat 4-1-$4.50 @ FC 32.96%
Boars Head NC 8-1 dog-$2.00 @ FC 33.655%
Johnsonville Turkey Cheddar Dog$-2.75 @FC 27.552%

Hey Rick, How do the Boars Head Brats sell???????  

Curbside is giving you some good advice.  Hey, 25% food cost is even better, but you sure want to stay close to 30%.  Over that..NG.

I use to triple whatever my food cost was and then, if I could get away with it, add even more..Like for french fries, sodas, etc.  One of the worst items for us profit wise was the hot dog itself!  It was terrible!  We are the middle man in the hot dog and so getting 3 times the cost on a hot dog is about all you can do..Not great.

Our big profit makers were the hand pattied burgers, meat balls, fries, etc.  We made them all from scratch and that's the only way you can bump up more than 3 times your cost and still be competitive.

So, come up with some homemade items that people will like.  It will help expand your profit.

Steak houses cannot do this with their primary menu item; steak  They make higher percentages of profit on their sides, desserts, beverages, etc.

You can only triple the cost if your food cost is low. This guy can't triple anything until he gets his prices DOWN......Its not the customers falt because he can't get good prices. He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

What I was trying to say is your specials are not specials to you. Stick with one product, Sausage special, Hot dog special. Forget that candy bar, Sell Rolaids better. I give a peppermint star away to help digestion. Cost very little and customer likes free. You are in Sausage country use it. The concoctions in your area unreal. Don't get defenseless, top name brand to Bottom just because prices not in your game plan, or someone points a fact. You need to see what your customers want and provide the product. Price point later. Have to arrive at a point that the customer loves the product that you can provide at your cost. In the South hard to do, in your area, a good sausage will do. $4.00 for a sausage at 34% food cost easy. You are looking to brand not me local flavor the demand is there. Could do a sausage and soda special, this is lunch not Dinner. Two dogs and soda $5.00, Sausage and Soda $4.50 TAX included. If buying product off the retail shelf you are out the door.

Look under your nose. The product is there, have to find the product for your area. I do not brand. In my area would not work.
thet want a good flavor with a good cost.

BillyB


He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

 
He won't have a problem selling a loaded Nathan's 5:1 for $3.  What kind of full meal do you serve for $3?

Have FUN Working and over worked help. Carts proceeding
From Dreary Lawrewnceburg and over worked at this time
Mikey's
3 days of no rain ,  GOD Sent, Mon-Wed. Have to hire a hooker, more than I can handle. IL State Hire ME . 3B IN Bribe can get BBQ in Springfield. Seat I want.
Forgot what light Bulb looked liked.
 

MikeinRI

Curbside Grill


Have FUN Working and over worked help. Carts proceeding
From Dreary Lawrewnceburg and over worked at this time
Mikey's
3 days of no rain ,  GOD Sent, Mon-Wed. Have to hire a hooker, more than I can handle. IL State Hire ME . 3B IN Bribe can get BBQ in Springfield. Seat I want.
Forgot what light Bulb looked liked.
 

This must be funny somehow. Can someone translate it?

Can translate Starting tomorrow three days no RAIN. We are having the wettest May in history, wettest spring mostly .Thought about an Ark. Working on new cart designs to sell, designing,drawing, directing tool paths, overwhelming.  My thoughts when up, down, up. Sleep when I can. Trying to be funny did not work.
Sorry
Did Car show Friday nite after rain,could not do lunch, chili cookoff SAT,rain and more till tomorrow. going to shop today and put new thought into cart. Only opened two days this week.

PopsDogHouse

Methais


Damn, wish I could find Nathan's for $.33 each. They do have another Sam's not far from here though I'll check out, but they're probably the same price. I do remember someone on here telling me Sam's sells 160 for $80 too a while back.

 
I think what he is getting is an 8:1 for .32, and what you are buying for .53 is a 5:1. Are you getting yours from the Cafe at Sam's?

Yeah they were from the cafe. I didn't think to ask them if they were 5:1 or 8:1. I'll have to go back up there this week and double check. Hopefully you're right on that, that would be a hug help if that's the case.

.53 cents per isn't even a bulk discount, since Walmart here sells them for $4.12 for a pack of 8 8:1.

Some other random points:

At the boat launch I'll have pretty much no competition. Once people get into their boats, the only place for them to eat is a restaurant that's miles away that's only accessible by water. That, or they can get back in their car and drive down the road to a restaurant, which people boating aren't likely to do unless they eat on the way there.

Not 100% sure about the plants, but they do have roach coaches that go there sometimes. Not sure what their prices are like, but a friend of mine who works at another plant said the only place to eat for them is some little mom & pop store that sells cold ham sandwiches for $3.90, and he tells me there are people lined up out the door and around the building to get one for their 30 minute lunch break.

As for the bar I'm thinking of hitting up on Thursday - Saturday nights, there's nowhere to eat near there either unless you get in your car and drive a few miles, which most drunks won't (or at least shouldn't) be doing. Plus I figure if they're willing to pay $2-3 for a beer, they'll probably be ok with $3 for a hot dog or $4 for meatballs. I know when I'm hammered and hungry, price is the last thing I'm worried about. Even then, I personally would gladly pay $3 for a good hot dog to satisfy my munchies.

So in summary, I don't forsee having any competition in the immediate vicinity, and I'll be (hopefully) setting up in scenarios where people will appreciate the convenience.

I'll price sausages and stuff this week when I go to Sam's. I bought some New Orleans and Italian style ones at Walmart a couple weeks ago and they were great so hopefully Sam's will have a good price on those.

PopsDogHouse

BillyB


He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

 
He won't have a problem selling a loaded Nathan's 5:1 for $3.  What kind of full meal do you serve for $3?

POPS, My food cost is between 1.25 and $ 1.50 and the selling price is $4.75 to $5.50 with Carved Roast beef mashed potatoes and gravy and veg being the highest at $5.95. most of my specials are at average $5.............
2 soft shell tacos Refried beans spanish rice.....$4.75
Chicken fried staek country gravy mashed pot and veg. $5.00
Meatlaof dinner
lasagna
spaghetti and meatsauce and caesar salad
bbq chix baked beans and corn bread
and so on......................"I don't see a Hotdog and being a full meal".....if I stopped at Methais cart it would cost me $8 for a few dogs chips and a pop  IMHO thats to high...Bill........I could eat at Chili's or Applebees for that kind of money.....

BillyB

PopsDogHouse

BillyB


He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

 
He won't have a problem selling a loaded Nathan's 5:1 for $3.  What kind of full meal do you serve for $3?

POPS, My food cost is between 1.25 and $ 1.50 and the selling price is $4.75 to $5.50 with Carved Roast beef mashed potatoes and gravy and veg being the highest at $5.95. most of my specials are at average $5.............
2 soft shell tacos Refried beans spanish rice.....$4.75
Chicken fried staek country gravy mashed pot and veg. $5.00
Meatlaof dinner
lasagna
spaghetti and meatsauce and caesar salad
bbq chix baked beans and corn bread
and so on......................"I don't see a Hotdog and being a full meal".....if I stopped at Methais cart it would cost me $8 for a few dogs chips and a pop  IMHO thats to high...Bill........I could eat at Chili's or Applebees for that kind of money.....

WOW!  I wish I could find those deals around here.  Food cost is very good for top quality ingredients.  Based on your posts about only serving top quality food, I'd say you're too cheap.  Very low prices.  But, I didn't think you could serve a quality meal for $3.
 
I don't know how much you eat, but a 5/1 Nathan's, bag of chips and a Coke for $5 is certainly a full meal to me.  I'll pass on the horse feed they serve at Chili's and Applebees thank you....LOL
 
After stopping in Sam's this morning, that dog is actually a 4:1.

Methais


Hot Dog Cost With Everything Possible

Hot Dog:     0.53
Bunny Bun:    0.19
Mustard:    0.04
Relish:        0.05
Ketchup:    0.03
Mayo:        0.04
Jalapenos:    0.05
Onion:        0.05

Boat:        0.02

Fork:        0.02
Napkin:        0.01
Gloves:        0.01
_______________________

Total Cost:    1.04
Menu Price:    2.00
Profit:          0.96

 
Methais,
A couple of thoughts here.  First, I was at Sam's today and  that dog is actually a 4/1.  It's been my experience that most folks would rather have (2) 8/1's than (1) 4/1. Just something to think about.
 
Second, you are estimating too high on your condiments. 
 
Just a couple more things to think about.  You can use foil for .01 each instead of the boat at .02.  Foil will also keep the bun steamy and food hotter for a longer period of time.  Forget the fork.  We only use them with our Half pound Belly Buster because once you load it with Chili and Slaw, it can get messy.  Sam's club here sells canned soda for .30 each.  Watch Walmart closely on soda.  They run it on sale for $6 per case.  That's .25 per can.  I just bought 80 cases Saturday at this price.  On your chips, if you are using the 1 oz bags from Sam's, you will probably get serious price resistance at $1.
 
Does your selling price include tax?  If so, you have to figure that into your margin.
 
Edit: You can also purchase buns at the cafe at Sam's.  They steam well, taste good, and will hold that quarter pounder.  They will run you $13 for 80 buns (.16 ea.). 
  


 

I don't know how much you eat, but a 5/1 Nathan's, bag of chips and a Coke for $5 is certainly a full meal to me.  I'll pass on the horse feed they serve at Chili's and Applebees thank you....LOL
 
After stopping in Sam's this morning, that dog is actually a 4:1.

Ditto - I am not a fan of Chili's and a hearty dog with all the fixin's, chips and a soda are enough for one sitting. I'd rather hit any Mom and Pop home made shop vs a chain. Here's Chili's "deals" for under $7 no tip or drink included. I can't speak for anyone else but having been in food service for many years, I rarely tip less than 20%. Look these over - would these be a "full meal"? Why does a half portion of an entree and a salad or a burger and fries constitute a meal?

Chili's $7 dollar deal - $7
Drink $1.25
$8.25 + 20% grat = $9.90 call it $10

I'd rather eat off the OP's cart for the $8

Not trying to piss on anyone's Cheerios - just curious.

http://www.chilis.com/menu/default.asp?catID=52&tierID=161%20&menuType=Dine%20In

PopsDogHouse

BillyB

PopsDogHouse

BillyB


He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

 
He won't have a problem selling a loaded Nathan's 5:1 for $3.  What kind of full meal do you serve for $3?

POPS, My food cost is between 1.25 and $ 1.50 and the selling price is $4.75 to $5.50 with Carved Roast beef mashed potatoes and gravy and veg being the highest at $5.95. most of my specials are at average $5.............
2 soft shell tacos Refried beans spanish rice.....$4.75
Chicken fried staek country gravy mashed pot and veg. $5.00
Meatlaof dinner
lasagna
spaghetti and meatsauce and caesar salad
bbq chix baked beans and corn bread
and so on......................"I don't see a Hotdog and being a full meal".....if I stopped at Methais cart it would cost me $8 for a few dogs chips and a pop  IMHO thats to high...Bill........I could eat at Chili's or Applebees for that kind of money.....

WOW!  I wish I could find those deals around here.  Food cost is very good for top quality ingredients.  Based on your posts about only serving top quality food, I'd say you're too cheap.  Very low prices.  But, I didn't think you could serve a quality meal for $3.
 
I don't know how much you eat, but a 5/1 Nathan's, bag of chips and a Coke for $5 is certainly a full meal to me.  I'll pass on the horse feed they serve at Chili's and Applebees thank you....LOL
 
After stopping in Sam's this morning, that dog is actually a 4:1.

Hey POPS, WE are a in house cafeteria for a large reatail company. they have about 1000 employees............We have to keep costs low so they can afford the lunch and Dinner special. I keep Cost low, labor low, and profit high. I know the cost of every Item on my menu and every paper product. This is a game of controls and knowing your costs. you can't control something you don't know.
  I checked my invoices lastweek and my Son/Chef bought Turkey breasts for $3lb I asked him if this was the Ritz Carlton... He sent them back and we got our regular product in at $1.90...........I pay $60 a case for chicken tenders
3 tenders at 1.75 oz each = .54cents
chick breading and buttermilk .10 cents
fries.........................................15 cents
dipping sauce...........................15 cents
napkin.......................................01 cents
ketchup......................................02 cents
plate...........................................08 cents
 
POPS, he serves a dog at a $1.04 cost. my cost is $1.04 for 3 large homemade chicken strips and fries and I sell this meal for $4.75. And yes POPS the quality is high and the customer service is good. This is just one example of controling food cost and giving the customer a quality meal. I think I'll set up some Cart cooking classes to teach people how to cook on the cart and have different menu ideas. I see many people that don't have any idea of the different kinds of food they can offer their customers......................Take care...............Bill
 
 

BillyB

PopsDogHouse

BillyB

PopsDogHouse

BillyB


He's not going to sell a dog for $3 .... I could serve a full meal for the cost of one of his dogs............Bill

 
He won't have a problem selling a loaded Nathan's 5:1 for $3.  What kind of full meal do you serve for $3?

POPS, My food cost is between 1.25 and $ 1.50 and the selling price is $4.75 to $5.50 with Carved Roast beef mashed potatoes and gravy and veg being the highest at $5.95. most of my specials are at average $5.............
2 soft shell tacos Refried beans spanish rice.....$4.75
Chicken fried staek country gravy mashed pot and veg. $5.00
Meatlaof dinner
lasagna
spaghetti and meatsauce and caesar salad
bbq chix baked beans and corn bread
and so on......................"I don't see a Hotdog and being a full meal".....if I stopped at Methais cart it would cost me $8 for a few dogs chips and a pop  IMHO thats to high...Bill........I could eat at Chili's or Applebees for that kind of money.....

WOW!  I wish I could find those deals around here.  Food cost is very good for top quality ingredients.  Based on your posts about only serving top quality food, I'd say you're too cheap.  Very low prices.  But, I didn't think you could serve a quality meal for $3.
 
I don't know how much you eat, but a 5/1 Nathan's, bag of chips and a Coke for $5 is certainly a full meal to me.  I'll pass on the horse feed they serve at Chili's and Applebees thank you....LOL
 
After stopping in Sam's this morning, that dog is actually a 4:1.

Hey POPS, WE are a in house cafeteria for a large reatail company. they have about 1000 employees............We have to keep costs low so they can afford the lunch and Dinner special. I keep Cost low, labor low, and profit high. I know the cost of every Item on my menu and every paper product. This is a game of controls and knowing your costs. you can't control something you don't know.
  I checked my invoices lastweek and my Son/Chef bought Turkey breasts for $3lb I asked him if this was the Ritz Carlton... He sent them back and we got our regular product in at $1.90...........I pay $60 a case for chicken tenders
3 tenders at 1.75 oz each = .54cents
chick breading and buttermilk .10 cents
fries.........................................15 cents
dipping sauce...........................15 cents
napkin.......................................01 cents
ketchup......................................02 cents
plate...........................................08 cents
 
POPS, he serves a dog at a $1.04 cost. my cost is $1.04 for 3 large homemade chicken strips and fries and I sell this meal for $4.75. And yes POPS the quality is high and the customer service is good. This is just one example of controling food cost and giving the customer a quality meal. I think I'll set up some Cart cooking classes to teach people how to cook on the cart and have different menu ideas. I see many people that don't have any idea of the different kinds of food they can offer their customers......................Take care...............Bill
 
 

Bill,
 
Again I will say, very nice job of cost containment.  You run a very low food cost and great margin.  YOUR market has dictated to you what you can sell for.  You have made adjustments to quality to get where you need to be cost/price wise.  This is evidenced in your example of your son ordering the $3 lb. breast meat and you sending it back in exchange for a cheaper prodct. Please note that I am not saying that your product was not a quality product after the substitution, just that you purchased a cheaper product to meet a number.  Just as your market dictates your selling prices,  Methais' market will tell him whether or not $3 is too high for his quarter pounder.  I firmly believe that based on the quality product and his particular location, he will have no problem getting it if he wants to sell that particular dog.  I also believe that once he digs in deep, his cost won't be $1.04.  I pointed out some quick potential cost savings for him in an above post.  There are other ways he can control it also.  If his market won't bear that price, hell, he can buy an all meat hot dog for .20 each if that's what his customers want and what he is satisfied offering.
 
I like your cart cooking class idea.  You better hurry though.  Health regs. all over the country are tightening up incredibly fast.  So many areas now limit carts soley to hot dogs or truly prepackaged items.  One of the nice things about cart operation is the simplicity of the menu and operation.

Hey POPS, I wonder how many people are using local meat markets. This maybe a way to use local beef hot dogs and sausage and advertise. The  meat market would get some advertising with you buying, and selling, his product.  If people like it they could go to his market and buy iy for home use. This may work well with his area in the south. Thye are all about local, local, local. Also thanks for the good advice in this post.................Bill