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Do you know your menu's profitability ?
The program is an attempt to help restaurant owners and administrators to turn out recipes or menus into cost, sales price, desired profit margin, taxes incident on sales, and profitability well before the ingredients go into the pot. See more.
  Profitability is a sort of interest rate, which conveys the meaning that the summation of a series of net profit present value, is larger than that you could obtain elsewhere in a certain period of time. If the investment return is larger than that you could obtain elsewhere, you can confortably be at ease for your business is profitable.
  Menu is a list of dishes, whose purpose is to generate profit through the customer's satisfaction. The excellence of the service rendered and the quality of the food offered is undoubtedly a very important objective, but the most important objective of all is to reach the forecasted profit goal through the customer's satisfaction.

Forecasted or historical cost?

You should learn how to figure out your menu cost and sale price well before the ingredients get the pot intead of restricting yourself to copy the competitor's price. Such an attitude may endanger your restaurant's health.

 

There are two things you must be aware of before you come out to the conclusion on whether your restaurant is profitable or not:

The knowledge of the profit margin for every course sold;

The internal rate of return (IRR) of your restaurant as a whole.

The internal rate of return (IRR) is the interest rate type that holds the meaning that a series of profit flows, in actual values, pays off the invested capital.

If your restaurant's IRR is larger than the yield you could obtain elsewhere, then feel hapy for your restaurant's profitability is acceptable.

Incidentally, the profitability analysis is the last step in a process that begins with cost calculation and ends on the sale price. The profitability analysis intends to mean two things:

That is the right time to pullout or remain in the restaurant business;

That is right time to make an in depth review of your current operations.

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