Donald Burns shows restaurant owners how a 3% pricing gap on $1.2 million in sales costs $36,000 a year. Most undercharge because they don't systematically recost menu items or calculate contribution margins. He urges owners to price like an owner would, not by memory or copying competitors.
You know, a 3% pricing gap on $1.2 million in sales leaves around $36,000 of uncollected money every single year. Think about it. You made the food, you paid the labor, you served the guests, and then you refuse to charge what the experience required. That's not generosity. That's just a weak pricing discipline. Your guests didn't ask for a discount, but you gave them one anyway. Your prices have to reflect Today's ingredients cost, your real portions, your labor, your packaging, your delivery commission, and the contribution dollar each item needs to earn. Stop pricing from memory. Stop copying the place down the street and using their pricing model. If you haven't recosted your menu since your vendor's last price increase, you are already behind. So here's your fix. Cost out every item. Measure what each one contributes. Then price it like an owner. And this isn't for owners looking to blame someone. This is for owners ready to look at how they actually lead. Book your Profit Leak Check with me personally at profitleakcall.com. Bring your current menu and bring your last 3 months of numbers. Let's fix the leaks now.
If your restaurant only works because you work 80 hours a week, it doesn't work.
