Thursday, January 18, 2018

MC of a Restaurant Meal

The Washington City Paper did a nice piece on the marginal costs of different popular meals in DC. In most cases, they calculated the marginal food cost because it is difficult to figure out how much of the other inputs (e.g., labor) is marginal to a meal. Still this is an informative exercise. I wonder how often the restaurants take the next step to compare actual markups to desired markups? For example, the margin on the Baan Thai Vermicelli (left) seems way to low.

1 comment:

  1. The table includes average fixed costs are marginal costs. Rent? Manager salaries? Insurance?