Selling food to my second restaurant?

tomrip · Dec 14, 2017

Hey all. I have had a bbq restaurant for 3 years. I just opened one up 15 miles away. We are smoking the brisket and pork, and making sides at the original location. We have 2 large smokers and several cinvection ovens, so we saved a bunch by doing this. I have another family member running this spot. So they are saving on electrical bill and staffing. I have just completed a complete cost analysis on wverything we make. What percentage should i raise the cost to charge to them. We have a couple of people asking about franchise, and we discussed selling the rubs and sauces, but trying to figure out a price where i can make money, and so can they. Thanks in advance.

ynotfehc · Dec 15, 2017

If you have 2 locations, one is acting as a commissary, I wouldn't think you would upcharge it. If I owned 2 locations, i wouldn't be trying to make a profit off myself.

Beentown · Dec 15, 2017

ynotfehc said:
If you have 2 locations, one is acting as a commissary, I wouldn't think you would upcharge it. If I owned 2 locations, i wouldn't be trying to make a profit off myself.

I concur.

If someone else is responsible for that location financially then I'd do a cost analysis and then charge them what your comfortable for profit on top of that cost.

COS + profit you want = amount you charge.

If your Cost of Sales is $1,000 (food cost, labor cost, fuel, etc...) and you need to be at 25% profit then charge $1,250

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Cook · Dec 15, 2017

So you don't actually own the second spot. If you're selling product to them, it seems to be their restaurant. If it actually is your restaurant, why on earth would you sell yourself product? Are you simply trying to pass the cost of goods from A to B...since A made all the purchases, but B will be selling to the consumer? If so, then your vendor can solve that problem in billing.

Otherwise, if you are stuck on billing them, charge them cost for what they get. Labor is up to you.

HBMTN · Dec 15, 2017

tomrip said:
trying to figure out a price where i can make money, and so can they. Thanks in advance.

Hard enough for one to make money like this much less two.

Selling food to my second restaurant?

tomrip

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