Food Cost 101 with LeRoy and Lewis

Рет қаралды 30,339

LeRoy and Lewis BBQ

Жыл бұрын

Evan describes how he calculates food cost for the business.
www.leroyandlewisbbq.com
www.patreon.com/leroyandlewis

Пікірлер: 61

@mikewarren2324 Жыл бұрын

I want to send this video to every person who has said to me, "Your bbq is great, why don't you open a food truck?" This is why I'm happy to stay in the backyard and cook for family and friends.

@omcorc Жыл бұрын

Spot on. My brother in law relatively recently was trying to talk me into opening a food truck. He’s got cash to burn and said he’d invest to help get it going. It just had to be a hard “no” for me. First, I would be very reluctant to get into business with family or close friends. Second (and this is actually my main reasoning) just doing basic estimates off the top of my head, the start up costs would be significant. I’d need to get a bigger pit (I have a Humphrey’s Battle Box, and it’s great, but it’s too small for commercial use). Then there’s the fact that I usually locally source the meat I smoke. For friends and family cooks, the extra cost for farm to table meat is worth it. If I went into the BBQ business I’d have to consider shifting gears to potentially wholesaling meat, and I’m someone who likes to know exactly where what I’m eating came from. Then there’s buying and setting up the truck itself. Then, after thousands and thousands of dollars are spent on start up costs, we get into the day-to-day that we see in this video. Everyday, seven days a week, no days off. I feel like too many people don’t take all this into account when they’re romanticizing opening a business, no matter what it is.

@gp7110 Жыл бұрын

I did this. Bought a nice 250 gal smoker. Then the cost of meat skyrocketed, the cost of WOOD of all things was preposterous, and marketing was insane, not to mention legit biz license stuff. So much more than I planned. Shut it down after 8 months and only a few catering orders.

@TripleWhopperWithCheese Жыл бұрын

@@omcorc NEVER do business with family or friends.

@tediekgb Жыл бұрын

I hear this all the time and I say the same 👍

@bullard73 Жыл бұрын

Food cost are bad. Throw in finding a steady supply of wood. The biggest factor is the time it takes to properly smoke meat. Time is money. No, I too will stay in the backyard. I hear people at good bbq places complain about prices and they just don't get it. Most bbq places are not that good or they go out of business because they cut corners to try and reduce price.

@wfodavid Жыл бұрын

This is exactly what most folks that start a food business DO NOT think about and this is the one that will shut you down. Solid vid!

@SAKIZORRI671 5 ай бұрын

Food cost and labor cost are factors for sure. Allot of customers don't understand why prices are set the way they are. Awesome video!

@ryangies4798 Жыл бұрын

I've watched this video at least 10x on Patreon and just watched twice. This is a Masterclass on food/operating costs. Thanks Evan and Sawyer!

@louiegrabske7655 Жыл бұрын

Love what you guys at L&L are doing!!! If most people had any idea what kind of work and care go’s into good bbq, price wouldn’t be a question.

@randyshifter Жыл бұрын

When I go to a place that's iconic and more of an experience than a typical restaurant, I don't mind pricing. It's to me like going to a baseball game or amusement park. 15$ a beer is what's to be expected. So don't mind the mark up. L&L, or any superstar bbq place can really charge what you want. As a consumer I'm not complaining.. anyway great explanation and video Evan!!

@CoolJay77 Жыл бұрын

Good video. People complain for paying $30 plus for a pound of brisket at a restaurant, not realizing the costs involved. BTW, at 74% yield, each useable pound of brisket is costing you $6.49 /0.74= $8.77

@bare365 9 ай бұрын

Thanks so much for the knowledge because most videos out here don’t go over cost like this. I’m gonna watch this one again and save it to my favorites.🤩

@brandonin_ny Жыл бұрын

These videos are incredibly valuable, Evan. I certainly wouldn’t be upset with you if you guys could find a way to do this side of the business more.

@DaveScottADV Жыл бұрын

I love this insightful look into the business side of things. Having run a similar, non-BBQ style cary-out place, most people don't understand how the numbers actually come together. Love your commissary btw.

@Rigdawg Жыл бұрын

I sure appreciate you explaining basic business on this video. I sure hope customers see this and understand why the price of a great meal portion is a few dollars more than what they are used to. I personally think your retail price should be 20% more than your current price.

@travisnorman957 Жыл бұрын

Hey man, as a 1st year truck owner operator, I want to thank you for these videos. I’m going to be watching this a few more times when I can sit and take some notes. Happy Holidays to you guys.

@broysbbq 7 ай бұрын

Incredible insights and such a great watch!

@savalascraftbarbecue Жыл бұрын

This video is underrated. Not everyone is lucky enough to have someone explain it like this.

@kylebrown6012 Жыл бұрын

This is an amazing video! Thank you!

@alexis1156 Жыл бұрын

The vast majority of the time business doesn't go well is not because of the product, but rather because of not knowing the economical aspects of running a business.

@javierchavez4749 Жыл бұрын

This was super informative and interesting more videos like this

@vitaliypeker6640 Жыл бұрын

Very very interesting. Thank you for sharing!

@randypoe560 5 ай бұрын

THANK YOU

@embecmom5863 Жыл бұрын

Great example Ive been running a food truck for a few years and have just started really examining my total returns. My money is made on pork and sides because my return is nearer 80% before other costs. people think you are taking every penny home with you but you need to keep money to pay for the next event so you never see all the profit. As you say at the end of the day you have to make money. btw Im paying more per lb for frikin ox cheek! (UK based)

@TripleWhopperWithCheese Жыл бұрын

You've been running a food truck for years and just now looking at the numbers?

@claycobb1810 Жыл бұрын

Another great video. Thank you

@bennewman6323 Жыл бұрын

I think the initial calculation about raw price of brisket at 74% yield should be $6.49/0.74 * 4 = ~$35/lb (divide by your % instead of multiplying by 1 + %waste)

@robdilorenzo9204 Жыл бұрын

This is what I came to the comments for. This also makes maximizing your yield even more important. At 36% yield, true price becomes $6.49/.36 = $18/lb. Then you should be charging ~$80/lb to be profitable!!

@LeRoyandLewisBBQ Жыл бұрын

I’m admittedly not a math guy, thanks for the help, guys!

@jordanbabcock9349 5 ай бұрын

$80/lb what a rip off.

@tomasnilsson866 9 ай бұрын

Fantastic content! Thanks a ton

@davidk9458 5 ай бұрын

Fantastic, thank you.

@danielmiddleton8173 Жыл бұрын

Evan busting out his fall back on job, high school math teacher. LO=MxM+(C+TBBQ). Or in layman's terms: Lights On=Make x Money+(Cook+TastyBBQ). It's Arithameticuals man

@epickleuva Жыл бұрын

One of our goals is to get down to the elusive 25% next year. You’re absolutely right that brisket is the loss leader and we sell quite a bit of it. We try to always sell it all and if not, repurpose in beans, tacos, etc.

@dvsmike Ай бұрын

There is a bbq spot here in socal called Smoke n Fire Eatery and they do brisket tacos and burritos and loaded fries. Definitely gotta creative

@Paragon_Reason Жыл бұрын

Id try to use brisket trimmings for sausage, meatballs, and tallow.

@domcedillo 5 ай бұрын

So basically you are pricing your COP at 25% and then your value adds all in at 33%. Are your prime costs around 65%? Thank you! This is helpful. Inflation is kicking everyone in the teeth.

@SuperPfeif Жыл бұрын

Great info, thank you

@LeRoyandLewisBBQ Жыл бұрын

Thanks for watching!

@captaintom7600 Ай бұрын

I'm going through all your videos trying to find the other business videos you mentioned, can't find any.

@LeRoyandLewisBBQ Ай бұрын

Yeah we never did them. The process continues to evolve.

@end0828 Жыл бұрын

Good info. Can you do a brake down of what equipment is needed for the complete operation.

@LeRoyandLewisBBQ Жыл бұрын

Depends on your menu but we are pretty minimalist with cabinet warmers, a hot plate to toast buns, yetis to use as a cold well, and a dorm fridge for backups.

@FierBarca1899 6 күн бұрын

What kind of products does the starting inventory consist of? What kind of material constitutes the orders?

@LeRoyandLewisBBQ 6 күн бұрын

All food and supplies we use to make food.

@FierBarca1899 6 күн бұрын

@@LeRoyandLewisBBQ Thank you.

@purpleheartbbq576 Жыл бұрын

This is very insightful. Curious if you use machine learning or some other statistical model to forecast sales or is it based on your expectations and intuition? I’d be interested to see how overall costs breakdown at the labor and material levels such as cooking wood, spices, toppings etc.

@kdb7670 6 ай бұрын

Hi Did you end up doing the inventory video? I haven't been able to find it so thought I would ask. Thanks!

@LeRoyandLewisBBQ 6 ай бұрын

Have not yet since we have changed our systems a few times, but its on our list for the new place.

@seansmith3747 6 ай бұрын

This math is very sobering for backyard dudes wanting to make the leap.

@redballs Жыл бұрын

Pro Tips

@johnl6566 Жыл бұрын

I'm curious: why do such elaborate math? Couldn't you just look at your brisket case price for a given week, and then look at your total sales of brisket and brisket products (burgers, chili, etc) after the week ends? Just divide the Cost into the total sales and arrive at Cost of Sale percentage? Is there an advantage to scrutinizing the yield in such a manner?

@LeRoyandLewisBBQ Жыл бұрын

We've gotten a lot of questions about yield over time. People are curious of how much you lose in weight of a brisket when it's cooked. You're also not taking into account inventory if there is any left over.