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Discussion of Marsha's Industry Standard: Little Things ...

by Robin Garr » Wed Feb 02, 2011 5:13 pm

Industry Standard: Insider info for those who dine out

Little things mean a lot

By Marsha Lynch

Have you ever been tempted, when dining out, to compare the price of your meal to what it would have cost to prepare at home? Let’s see … chicken, $1.19 a pound, so let’s say 60 cents. Fancy mushrooms, at most $8 a pound, but there’s only a couple ounces here, so add a dollar. A splash of wine, some herbs, a few dirt-cheap potatoes. These people are making a fortune!

To be fair, you’ll probably remember that the owner has a staff to pay and probably a landlord, too. Still, as you sign the bill, your inner penny-pincher is whispering: Really? A 600-percent markup? REALLY?

What factors contribute to the end cost of a restaurant meal? Aside from actual food cost, wages and rent, what else must the price of an entrée cover?

Well, there’s linen. Rental linen service includes your pristine white tablecloth, sure, and it also includes your cleverly folded cloth napkins. It includes that bar towel the bartender just dropped on the floor. He’s got to throw it in the hamper and switch to a clean one now, or whenever it gets soiled. He may go through five or 10 a night. Linen includes his apron, the servers’ aprons, the cooks’ and chef’s aprons … and the cooks’ towels. I have seen grown restaurant managers reduced to tears when they see how many rented terrycloth side towels a shift of line cooks can use in a single service. Linen service usually also includes floor mats, which are changed every few days.

China and glassware. Your china may be an heirloom set passed down by someone’s grandma, displayed in a beautiful dining room cabinet alongside those cool champagne goblets you got as a wedding gift. In a restaurant, china and glassware are the commercial fishermen of small wares, putting their lives on the line every service, with no thanks or appreciation for longevity.

If it’s lucky enough not to get broken, a plate, glass or goblet will eventually be discarded for having a chipped edge, or being scarred by repeated trips through the dishwasher. Often they break before they have a chance to show wear and tear. Whenever you hear a plate or a glass breaking behind the kitchen doors, some butter-fingered server or dishwasher is probably hearing a manager say: “If you see the word ‘china’ on your paycheck stub, it doesn’t mean you won a trip.”

There are chemicals to buy, which keep the dishes and the floor clean. There’s all manner of insurance: business, unemployment, possibly a contribution to health insurance for the management. There are utensils in the kitchen and flatware in the dining room to pay for. There are coffee-stirrers. There are sweetener packets. There are sauceboats, dressing carafes, salt and pepper shakers. Chalk for the menu board. The menus themselves have to be designed and printed. Is there a tech-savvy fry cook in the kitchen who builds and maintains websites for fun? If not, you’ll be paying someone else to do it.

So, next time you wonder how much profit a restaurant owner makes from a single entrée, know this: The average U.S. restaurant profit margin hovers just under 5 percent after all expenses, not including taxes. And if that owner forgets to budget for new napkin rings — there goes his family trip to Gatlinburg.

So please enjoy the cool napkin rings, but enjoy them here. Some folks slip them into their purses because they think there’s an endless supply in the back. There isn’t.

Marsha Lynch has worked at many Louisville independent restaurants including Limestone, Jack Fry’s, Jarfi’s, L&N Wine Bar and Bistro and Café Lou Lou. She now works for her alma mater, Sullivan University, as sous chef at Gardiner Point residence hall.

Read it on LouisvilleHotBytes:
http://www.louisvillehotbytes.com/littl ... mean-a-lot
and in LEO Weekly:
http://leoweekly.com/dining/industry-st ... ine-out-25
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Mark R.

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Re: Discussion of Marsha's Industry Standard: Little Things

by Mark R. » Wed Feb 02, 2011 5:26 pm

Very interesting article Marsha and I'm sure many people ask about the pricing like you discussed. I guess maybe I look at things a little differently because a lot of times when we go out to a restaurant I ask myself "how can they do it for this price"? Of course I'm talking about everyday type restaurants, not special occasion ones where I do sometimes think the prices are a little ridiculous. Maybe it's because of my background where I have a lot of experience looking at the costs to produce a product and I realize all of the factors that go into determining the final price.
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Will Crawford

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Re: Discussion of Marsha's Industry Standard: Little Things

by Will Crawford » Wed Feb 02, 2011 7:08 pm

Great article Marsha. You explained very well.
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Re: Discussion of Marsha's Industry Standard: Little Things

by JustinHammond » Wed Feb 02, 2011 8:23 pm

What about the stolen salt spoons? :lol:

Great read!
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Marsha L.

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Re: Discussion of Marsha's Industry Standard: Little Things

by Marsha L. » Wed Feb 02, 2011 8:33 pm

I wanted to mention salt spoons, but didn't dare. Napkin ring surrogate. :mrgreen:
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Robin Garr

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Re: Discussion of Marsha's Industry Standard: Little Things

by Robin Garr » Wed Feb 02, 2011 9:10 pm

Marsha L. wrote:I wanted to mention salt spoons, but didn't dare.

You don't think Sara or I would have stopped you, do you? :lol:
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Re: Discussion of Marsha's Industry Standard: Little Things

by Carla G » Thu Feb 03, 2011 9:54 am

Great article Marsha and something that was needed to be said. On top of all that restaurants have to deal with waste. How much fruit, vegetables or even meat winds up getting pitched because of unforeseen circumstances? Balancing inventory, shelf life of products and demand is an extreme business skill in and of itself. (IMHO)
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