The Secret Weapon to Taproom Profits: Design to CostFeb 08, 2022
The unfortunate truth about food pricing is that the market is in charge.
You're stuck with the market price, no matter what you do.
However, you can use a powerful strategy called Design to Cost, so that you are profitable on your food offerings.
Design to cost works like this:
- Start with the market price. That cheeseburger, no matter how great it is, can't cost more than $9.99, for example.
- Calculate your food costs. Figure out how much it costs you to make that cheeseburger. Add up all the costs of ingredients.
- Figure out how you can lower the costs. This is the key to the 'design to cost' strategy. Identify where and how you can lower costs, so that you can increase margins and profits.
Design to cost. It's a simple but powerful strategy to improve financial results in your taproom business.
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