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Large Restaurant Food Portions

2,976 Views | 51 Replies | Last: 27 days ago by JoCoAg09
nbbob
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ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.


Wow so 70% of a larger number is more than 70% of a smaller number. Did not know this!
Backyard Gator
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fc2112 said:

Backyard Gator said:

Your wife is an adult, though, and the fact that you think you need to be her 'daddy' and tell her what she can and cannot eat, and monitor what she buys in a restaurant is disturbing.


I disagree. It is too common for some women to order a big meal and only eat 1/4 of it. It's kind of a brag about being self disciplined thing.

If I'm paying for it, I'm gonna break her of that habit. You don't need to show off for me, honey.

I have a friend who eats like a bird. When we go out, she cuts her entree in half, and puts the remaining portion in a to-go box. She always eats it the next day for lunch. It isn't a 'discipline' thing, she eats her leftovers, she's doing the opposite of food waste.

She's also 8 inches shorter than me and half my body weight, so I don't expect her to have an appetite equal to mine.

The fact that you think you need to 'break someone of that habit' merely because you paid for a meal is strange to me, it comes off as controlling.
maroon barchetta
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First time reading an fc2112 post?
Backyard Gator
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ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

Are you basically saying corporate just likes the bigger number, so seeing $23.38 on one unit makes them happier than seeing they net $16.38, even if the net is no different than what it was at $11.69?
Mr. Thunderclap McGirthy
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AG
I feel shame for ordering off the kid's menu. Crazy times I'll order iced tea.
In Hoc Signo Vinces
62strat
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ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

to add onto this.. the larger portion takes same amount of time to put on a plate that the small one does, so your labor cost remains the same.

In other words, putting a 4oz burger on a bun with some toppings and 2oz of fries is the same labor cost as putting an 8oz burger on a bun with some toppings and 4oz fries. So this return on net is increased with a larger portion.

Scale it down to an exaggerated level to see the point. It's why 'flights' of beer are much more expensive per oz than a pint. It's more labor cost, and more dishes to clean.


Although to play devil's advocate, economies of scale does come into play with larger portions. I would expect to pay less per oz for a 16 oz beer than two 8oz half pours. Or less per oz for the 16 oz steak option compared to the 8oz option.

62strat
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Backyard Gator said:

ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

but, you have to sell two of them... that is twice as many. If you typically have 100 customers a day and all are buying your standard portion, you'd need 200 customers buying a portion that is half the size.

This seems pretty obvious.
dabo man
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I'm all for economies of scale. I guess that's why the place in Plantersville serves an 85oz sirloin (free if eaten within 75 minutes). I'd take about 72oz of that steak in a to-go box.
https://www.texasrelaystation.com/restaurant

Ginormous Ag, you in to eating challenges?
Backyard Gator
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62strat said:

Backyard Gator said:

ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

but, you have to sell two of them... that is twice as many. If you typically have 100 customers a day and all are buying your standard portion, you'd need 200 customers buying a portion that is half the size.

This seems pretty obvious.

Why do I care if I sell to 200 customers a day vs 100 customers a day if my profitability is the same?

The only advantage I see is I'm getting more bang for my buck on labor costs.
62strat
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dabo man said:

I'm all for economies of scale. I guess that's why the place in Plantersville serves an 85oz sirloin (free if eaten within 75 minutes). I'd take about 72oz of that steak in a to-go box.
https://www.texasrelaystation.com/restaurant

Ginormous Ag, you in to eating challenges?

fc2112
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maroon barchetta said:

First time reading an fc2112 post?

dabo man
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B-1 83
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The Wife and I frequently split a meal. When we don't, It's an almost sure thing 2 "to-go" boxes are going home with us.
Being in TexAgs jail changes a man……..no, not really
Mathguy64
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Backyard Gator said:

62strat said:

Backyard Gator said:

ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

but, you have to sell two of them... that is twice as many. If you typically have 100 customers a day and all are buying your standard portion, you'd need 200 customers buying a portion that is half the size.

This seems pretty obvious.

Why do I care if I sell to 200 customers a day vs 100 customers a day if my profitability is the same?

The only advantage I see is I'm getting more bang for my buck on labor costs.


Restaurants have to turn tables. 200 tables versus 100 is twice as much seat time. And twice as many dishes to wash and twice as many tables to clean.

Add it's a satisfaction thing for value of $$. If a customer feels like portions are small they may find that a bad value regardless of price.
Mr. Thunderclap McGirthy
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It's a profit deal.

Takes the pressure off.
In Hoc Signo Vinces
62strat
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Backyard Gator said:

62strat said:

Backyard Gator said:

ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

but, you have to sell two of them... that is twice as many. If you typically have 100 customers a day and all are buying your standard portion, you'd need 200 customers buying a portion that is half the size.

This seems pretty obvious.

Why do I care if I sell to 200 customers a day vs 100 customers a day if my profitability is the same?

The only advantage I see is I'm getting more bang for my buck on labor costs.

Are you proposing that if any random restaurant cut their portions in half, they'd get twice as many customers?

I'm guessing you're not following my logic. If you can get 200 customers all buying the standard portion, then you'd need 400 customers buying the half portion to be the same.


How many rounds is this gonna go?
JoCoAg09
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62strat said:

Backyard Gator said:

62strat said:

Backyard Gator said:

ToddyHill said:

Just taking a guess, having worked in corporate at two national restaurant chains.

The food cost for a serving typically runs around 30%. So, if the total food cost is $3.50 the menu price would be around $11.69. The 'return to net' would be the difference between the price less the cost, or $8.19.

Now double the size of the portion. Food cost is $7, so the cost stays at 30%, but the menu price of $23.38 doubles the 'return to net.'

Not saying that's why portions are big, but in a competitive industry the return on net is a big deal. Just my opinion.

If I sell two units at $11.69, it is the same as selling one unit (doubled portion) at $23.38. Percentage-wise and real numbers, there is no increase, I'm still selling the same amount of food and still receiving the same return.

but, you have to sell two of them... that is twice as many. If you typically have 100 customers a day and all are buying your standard portion, you'd need 200 customers buying a portion that is half the size.

This seems pretty obvious.

Why do I care if I sell to 200 customers a day vs 100 customers a day if my profitability is the same?

The only advantage I see is I'm getting more bang for my buck on labor costs.

Are you proposing that if any random restaurant cut their portions in half, they'd get twice as many customers?

I'm guessing you're not following my logic. If you can get 200 customers all buying the standard portion, then you'd need 400 customers buying the half portion to be the same.


How many rounds is this gonna go?

If you halve it, they will come.
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