I used to be a cook in a former life. I think I was making something near that in the 90s (maybe $13.50, definitely > $11). I suspect he's being dicked.
The waitrons we're bringing home upwards of $200 cash nightly, which inspired my career change.
The waitrons we're bringing home upwards of $200 cash nightly, which inspired my career change.
To fix the problem, look no further then COGS.
1. Smaller menus (less margin in the trash)
2. Aggressively seasonal selections (cheaper then any other food)
3. Be a part of the community you are serving (intangible but sticky customer base)
4. Pair down customer capacity (smaller team = more hours per employee)
5. Salaries instead of hourly (cheaper, longer term employees)
6. Add the frickin 5% to that $30 plate of food
7. Consider limited hours (staying open 16 hours is stupid and wasteful)
I assume you mean this? http://en.wikipedia.org/wiki/Cost_of_goods_sold
To think that I could succeed without doing something fundamentally different than those who have failed before me would certainly be naive, unless I am truly a culinary prodigy.
http://www.forbes.com/2006/07/19/spending-income-level_cx_lh...
Food carts are a perfect example of COGS in action. Coffee places are also an example (SBUX, stumptown, etc). Highly specialized businesses selling items at the best balance of COGS and quality.
Food carts and small specialized brick and mortar businnesses are succeeding because their COGS are far lower then your average place.
Most resturants fail because of their initial COGS at startup and because their food/service/merketing research generally sucks for where they are. Remove the service aspect, specialize, reduce cogs, make a living wage.