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Cedric Chin
@ejames_c
I recently did a series of posts on the incentives and cost structures of F&B businesses for my readers, within the context of being a vendor, selling to these folk. I really, REALLY enjoyed this thread. (Ignore the original thread he was responding to).
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Brendan Hodge
@Brendan_m_Hodge
I was the corporate pricing manager for Wendy's from 2010-2012, so as a professional pricer seeing this thread go viral, I can't help providing some corrections. The most basic thing to understand about fast food pricing is that a successful store needs to run at ~30% food cost twitter.com/primarycatdad/…
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Cedric Chin
@ejames_c
Think about what some of those numbers mean, though. Think about what it takes to become rich running franchises. For instance:
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Brendan Hodge
@Brendan_m_Hodge
If any location is clearing more than 10% a year, they are very, very well located and very, very well run. /end
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Cedric Chin
@ejames_c
One of the ratios that I learnt was that if the ratio of staff costs exceed 30% of previous night gross revenue (for too many nights in a row), you have to cut staff. Learning about businesses like these make me thankful for the relative simplicity and power of software.
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Cedric Chin
@ejames_c
And it also increases my respect for entrepreneurs running F&B businesses, be it in the US, or in Vietnam, Singapore and Malaysia.
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