Quote:
Originally Posted by Eponymous
You're missing NoahSD's point entirely. The profit from a bet isn't bottom line profit. There is a huge fixed monthly expense in keeping a casino operating. You have to have a certain volume of those bets in which "they win y amt of dollars every time" to be profitable. Not until they cover all the fixed expenses do those bets make profits. When there are a lot fewer gamblers, there are a lot lower revenues to cover those expenses that don't decrease much with fewer gamblers.
Which, of course, is the same thing is running a restaurant. You have fixed costs and you know that each customer will net you $X. So, you need Y customers per month. Also, like a restaurant, there is a cost per sale. The more customers come in, the more staff you need to hire, the more chairs you need to replace, the more sheets you need to wash, the more you need to run the effing AC.
I'm hoping that "gambling man" is actually "gambling boy." Either that or "gambling troll." "lol! All they need to do is take people's bets to make money and they can't even do that! LOL! LOL!"
Oh, and restaurants don't need to think about the price of cattle or F.C.O.J. Your food costs sheets might get updated every 3 years or so* IF you even use food cost sheets. Most cooks know ABOUT what a dish costs the restaurant and they are happy enough with that.
*These days there are probably computer systems that link the prices you paid into your food cost sheets so that when the price of flour increases 1 cent per pound, that price change is automatically reflected in your food cost sheet. You know, some fancy Excel stuff.
Food cost sheet = a detailed recipe which is then divided by portions per recipe. A final dish will have a food cost sheet for each component on the plate and an overall food cost sheet. So, your steak w mashed potatoes, Veal suace, and creamed spinach will have a food cost sheet for the mashed potatoes and creamed spinach. Then you'll have the overall dish's food cost sheet which'll look something like this:
8oz filet mignon: $10
6oz Mashed potatoes: $1.60
2oz Veal sauce: $1.05
4oz Creamed spinach: $1.35
Total cost of dish: $14
You then take that number and divide it by your desired food cost % (btwn .25 and .40 with McDonalds being closer to .4 and Craftsteak closer to .25). In our example, we'll go with .28 and charge $50 for this dish. In general, you keep your food cost % uniform across all dishes and may even choose to ditch dishes if you just can't get a good price on it using this method.
Last edited by CardSharpCook; 07-25-2010 at 08:10 PM.