Originally Posted by schildwaster
this is a small town and while people will pay 5 a slice it has to be a spectacularly large dessert. I'm looking at cutting a deal for my cakes with a standing order. the most they would probably charge is 3.25 a slice or max out at 4 for a big piece of cake or pie with icecream and sauce. so looking from their standpoint, they are going to want to make how much a slice off of the cake. $1.00 or less? i hate to sell myself short if restaurants only look to make .50 cents or so. anybody have experience on restaurant mark up?
Restaurants have to include the cost of EVERYTHING into their pricing. Overhead, labor charges, etc. Remember, it costs electricity to refrigerate, wash the dishes it's served on, pay the person who's cutting it and the waitstaff to serve it.
I had a relationship this year with a restaurant who was buying my cheesecakes at $12 each for a 10" plain, which serves 12. Mind you - prior to this they were getting frozen cr*p cheesecakes from Sam's club for the same price, also I was making them on their premises using my provided ingredients and pans (standing order of 8 a week, sometimes more). They priced them on their menu at $4.29 per serving
which if you go to most restaurants that doesn't seem all that much for real NY cheesecake. And I was making about 40% profit too so I was happy. But when you add it up, that's $51.48 income per cheesecake YIKES. Fast forward to this July when the dairy industry started jacking up prices. My costs went up a bit, and I notified them of new pricing - $13 a cheesecake instead of $12. Well you would have thought the world was coming to an end, and they quit buying them from me. I haven't been back there lately but a friend told me they're back to frozen cr*p cheesecakes from Sam's club again and still charging $4.29. And apparently nobody's buying them.
Restauranteurs are fickle people and it's a fickle business.