Food Cost Inflation Crisis
We have a crisis: Food Cost Inflation. Our Wings & Brisket prices are reaching critical levels. Because of this, we will be taking Wings OFF THE MENU soon. Once we run out of the wings we have, we won’t be ordering more.
This video will explain how food cost inflation is harming the restaurant industry. Topics discussed:
– How do restaurants price their food?
– What are “Core Costs”?
– What happens when Food Costs Increase?
Here is a short list of some of the restaurant supplies that have increased in cost but it has impacted almost everything.
1. Brisket up 30-40%
2. Wings up 20-40%
3. To-Go containers up 50% to 200%
4. Rubber gloves up 300 to 600%
In this video, we walk through the example of Chicken Wing costs.
– Wing Prices –
180 Wings Per Case
$134.36 cost per case
$8.36 Cost of Sauce for the wings
$4.84 Cost of Spice Rub on the Wings
— $147.56 Total Cost of Ingredients–
$.82 Cost Per Wing
8 Wings Per Order
Equals: $6.56 Food Cost of for an order of 8 Wings.
$14.00 is the Current Price we charge customers for 8 Wings.
That means that at the current prices of wings, our food cost is 47%. Our target Food Cost is 30% in order to be profitable.
So, what can we do?
We basically have 3 options:
1. Raise the price of the wings.
2. Buy a lesser quality wing. (Smaller wings)
3. Take the wings off the menu.
If we were to raise the price and keep them on the menu, instead of charging $14 for 8 wings. We would have to charge $22!!!!!!
We don’t think that our customers will want to pay $22 for wings. So for that reason, we are very sadly removing them from the menu.
If you want to get wings, order them now! Because once we sell out, they will be gone from the menu for the foreseeable future.
We hope this information helps shed some light on what all restaurants are going through right now.
Travis Stoliker – Co-Owner