Methods of Price Calculation in the Gastronomy Industry

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Simple markup calculation

The big advantage of this method of calculation in the catering industry is that you can use it to calculate the selling prices for drinks and food quickly and easily . It is particularly suitable for smaller catering establishments where few factors influence the price.

Of course, you don't iceland phone data have to accept the price resulting from the invoice 1:1, but you can adjust it slightly - it makes sense to arrive at an even, psychologically effective sum.

The disadvantage of this method is that it ignores the fact that different products require different amounts of effort. This means that prices are not always realistic .

Complex markup calculation

The complex markup calculation is more precise, but also more time-consuming . This includes not only the goods, but also all other costs incurred (personnel and energy costs, taxes, etc.). So first of all, be clear about all of these items. Then note down how much work, energy and time is actually required for each dish and drink . This allows you to distribute the costs much better across the individual products. The result is exact, realistic and market-oriented prices, but the effort involved is much higher than with the simple markup calculation.

target cost calculation

Here you start from the price you want to achieve for an item and then check how high the costs can be. Multiply your desired price by the number of sales and subtract all variables and fixed costs from the expected turnover. This number tells you how much money you have available for the cost of goods. If it is too low, you can either optimise your purchases or you have to lower your profit target or increase your desired price . Here, too, you are dealing with a market-oriented method , but the target prices are based on estimates .

An example: You want to sell a burger menu for 10 euros and expect to sell 50 units per day. This results in a turnover of 500 euros. From this sum you subtract all fixed and variable costs, for example 200 euros. If you have set a profit target of 100 euros, you are left with 200 euros for the cost of goods sold.