Ask George: How much does the cost of disposable items figure into the price of a to-go order? —Lisa S., St. Louis
The short answer is “more than you might think.” Pizza restaurants feel the pinch, as does any restaurant that does a brisk take-out or to-go business.
Many establishments “control the flow” in order to keep costs in line. (Ever wonder why Jimmy John’s keeps their napkins behind the prep line? So customers will not help themselves to the proverbial short stack instead of just what they need.)
To get compensated for disposable materials, restaurants work them into their cost structure. Anytime you hear a restaurateur talk about “food cost,” he’s referring to all raw material costs associated with that item—which in the case of to-go orders means plates, napkins, food containers, plastic flatware, condiments, cups, lids, etc. If the target food cost is 33% for example (which is common), every .10 of cost needs to generate .30 in revenue.
Asian restaurants do a brisk take-out business. Here’s what the extras cost a restaurant like Mai Lee:
- 8X8 styro box (1): $0.15
- condiment packets (6): $0.24
- chopsticks (1 set): $0.10
- lg paper bag: $0.09
- plastic utensils: $0.05
- Total: $0.63
Mai Lee must figure roughly $1.89 (.63 X 3) into its menu pricing structure for every to-go item—and they do. Any extras on top of that eat into the restaurant’s bottom line, which averages 10% of gross sales (or $1.00 on a $10 order). This is the reason customers aren’t offered fistfuls of condiment packets or multiple cups of sriracha, for example, which cost the restaurant .30 apiece. Those extra condiments would effectively wipe out the profit on that item.
Let’s look at a pizza parlor, using prices obtained from a local chain:
- 14” logoed pizza box: $0.41
- 9X6 styro container (for salad): $0.11
- dressing container and lid: $0.03
- plastic knife/fork (2 sets): $0.16
- napkins (5): $0.05
- logoed styro cup/lid/straw (2): $0.30
- foil pan and lid (for pasta): $0.23
- parmesan packets (2): $0.12
- pepper flakes (2): $0.04
- Total: $1.45
So for this three-item order, the pizza parlor needs to figure a whopping $4.35 (1.45 X 3) into its menu pricing.
The take away here, so to speak, is that to-go orders cost restaurants a lot of money--a cost that can be controlled--so if they happen to be stingy with extra condiments, that’s the reason why.
