The formula for a successful restaurant expenditures I was taught in college was 30% utilities+ 30% supplies+ 30% wages= 10% profit.
If you increase any expenditure without adding any cost or greatly reducing quality, your profit goes down. (econ 101)
I have worked in restaurants where the profit margin was much lower than 10%.
These places will close when you double the cost of labor.
Of course the big chains wont do so well either.
When all of the businesses go out of business, who will be able to buy the products that no one will be able to sell?
My favorite line from Demolition Man is “now all restaurants are Taco Bell.”
[ The formula for a successful restaurant expenditures I was taught in college was 30% utilities+ 30% supplies+ 30% wages= 10% profit.
If you increase any expenditure without adding any cost or greatly reducing quality, your profit goes down. (econ 101)
I have worked in restaurants where the profit margin was much lower than 10%.
These places will close when you double the cost of labor.
Of course the big chains wont do so well either.
When all of the businesses go out of business, who will be able to buy the products that no one will be able to sell? ]
The formula for a successful restaurant expenditures I was taught in college was 30% utilities+ 30% supplies+ 30% wages= 10% profit.
Replace the 30% utilities with 40% utilties via robot cookers, and you can lower wages to 10% ie. just a few manager and tech staff on hand... then you can increase profit to 20%