Setting menu pricing for the products you sell from your food truck is one of the most crucial components to running it, because the prices you set directly affect your ability to sell, cover costs, and generate your desired level of profit.
Food cooked on food trucks is normally priced on a per item basis. Typically, prices of menu items vary according to food costs (the actual amount it costs you to make dishes) and sometimes according to demand. For example, if your truck is famous for serving a unique dish, you may be able to use a higher markup to your costs of preparing it.
Most food service establishments target food-cost percentages between 20 and 40 percent. In other words, if a menu item’s total food costs are $2, its sale price should be between $5 (40 percent) and $10 (20 percent). You can adjust the actual percentage you use as you deem necessary. For items that require more time and labor to prepare, you may have to increase the percentage to keep your pricing competitive.
2 Simple Food Truck Menu Pricing Methods
New food truck owners typically use one of the following methods to determine menu pricing:
- Food-cost percentage pricing
- Factor pricing
These methods are merely guidelines for your use and aren’t absolute rules. If your market will bear menu item pricing that exceeds what you come up with by using these methods, do it!
Read complete article here: