I worked at a BBQ place 20 years ago and this is how the owner broke it down for me as well. A third for food costs, a third for labor, a third for overhead and profit. A lot of people that get into a restaurant business do it because they like making food, not because they want to learn how run a restaurant. You can't base your prices on your competitors, you have no idea what type of meat they're using, are their kids working for free after school, do they cut corners, etc. Price your stuff so that you can still be in business in a year. I've seen a lot of new BBQ places around here start off with a $9-10 plate and then after a month it's $14 because they underpriced it and lost their shirt the first month. But that price shock can drive off customers who think they're getting gouged.
@safeandeffectivelol you cam try to say whatever you want but that's just not true... a Berkshire pig and prime brisket are far more different than you're average meat. And idc what you think you can tell a select from a prime brisket if you have eaten bbq enough...
@@punchabunchofbuttons214 I've been eating BBQ for almost 50 years in Texas. Paying 2-3x the price is not worth the improvement in quality of BBQ. For steaks or grilled pork, it's worth it. The cooking time and method in TX BBQ should be enough to get pretty much any piece of grade of meat to be tender and moist. These people are using it as a crutch
I ventured into this as an at home meat smoker during 2020. Lost my job temporarily and I knew everyone liked my meat. So I started smoking it for profit... I probably only sold less than 10 things.... but the price point was very astonishing to me. To even recoup my costs, I had to charge way more than I wanted to. The price per pound seemed WAY too high. But do you know how many people complained or tried to negotiate the price?? ZERO! No one cared. They were paying a premium price for a premium product. They had asked me in the past to smoke meat for them, and suddenly I had the time to do it. Luckily, I'm fully employed again, and smoked meat is back to being a hobby!
This is incredible content. I'm wayyyyy down a RU-vid wormhole at the moment at 1am but that doesn't detract from the fact that this video is certified gold!
I agree 100% with your math. A restaurant having to charge $28 a pound for something I truly love is exactly why I make my own at home and don’t own a restaurant. 😜
I'm all for classes like Home Economics, but this isn't HOME economics here. He's teaching restaurant economics. No one needs to know how to price the food they're serving their family at home.
No idea why this was recommended to me by RU-vid but I really appreciate this. It's a nice thing to have people giving away trade secrets like this for the betterment of others. Further, I was very surprised by the amount of loss. At 14 pounds initially, I figured you'd end up around 8 so that was interesting.
We always use our trim for our sausage blend which helps with the cost of sausages. Best thing to try to implement with your products is zero waste if and when possible. Another thing we do is use drip pans under our briskets when smoking and use the drippings for gravy and aujus stock.
Thank you so much for this Video. There are not many videos out there as clear and to the point when determining Catering suggested prices!! This alone deserves shares and subscriptions to all of your platforms. Thanks again!!
If you did not have this information before opening a place why the fuck would you go into business. i will be generous and give you 1 year before your shit fails.
It's always been the rule of thumb to triple your food cost to price out your menu items. It's just as important to figure out the yield; the number of servings per brisket, in this case, which Damon didn't mention. It's also useful to figure overhead per serving. For instance, divide monthly energy cost by the number of servings dished out every month. So, if I sell 3,000 servings a month and my gas bill is $8,000, that's $2.67 per serving that will figure into overhead. You do that for every expense (payroll, maintenance, insurance, etc.) and then you can begin to project profit.
A local BBQ place on island is charging $40 per lb., and it sucks! I left never to return! My solution was simple... Prime brisket was on sale at Costco last week for $2.99 per lb. I got a 14.3 lb brisket for $43! I smoked it on my Weber and it was beyond amazing, especially with it costing the price of 1 lb. of local ripoff meat @$40! Brisket should NOT require financing! Great video! I should show it to our crappy overpriced BBQ joint guaranteed.
Lol! I think we both are both on the Big Island in the same area above airport and palisades area! Your name is the area! Small world my friend! Wow! 🤙
What happened to the other guy from Hawaii in the comments? Kalaoa flower grower.... Where did you go? I tried to reply but you tube was having problems and it didn't go thru. Now your comment is gone? Hit me up if you see this my friend. Mahalo & Aloha :)
Thank you!! These videos help us consumers understand so much more about your business. Yet some people still think your overcharging us and driving away in a Ferrari
as an amateur brisket smoker, it's fascinating to see this side of the bbq business. we get bombarded with all the "sexy" parts of bbq, but this is the reality of running a successful restaurant.
This looks like the start of a great series. I know the same priciples can be applied to most smoked meats but, I think it would be entertaining to see you perform the same activity with Boston Butt, Whole Chickens (and pulled), Chicken Wings, and Ribs (baby back, spare, and St. Louis).
What a great video! Can't thank you enough Brandon. As a guy who's been a hobbyist in the barbecue space for years in a city where there seems to be ZERO local barbecue that's better than decent, I'm starting to research starting my own business and information like this is a huge help.
Thanks for posting this video. My brother just bought a BBQ restaurant and has been struggling with the same dilemma. He found your video, and shared it with me. I am very excited for him to increase his effective revenue for his family.
Great video. Now I understand why brisket is so expensive. I would never have guessed you would have lost over half of the weight after trimmed/cooked!!! WOW!!!
for those who keep asking about trim cost, the trim is essentially going towards the other costs not factored in here, i.e. wood, salt, pepper, seasonings etc as well as prices fluctuating while you try to keep your prices level week to week. all restaurants find their cushions that are the “gravy”, your trim is the gravy to help keep things moving, if you’re pricing them in as well then you’re going to be far too tight and have no wiggle room for things that go awry because anyone in this business knows that there’s always something to fix and pay for. the trim in this case is basically going to cover those unforeseen costs.
I'm a little ignorant this subject...can u break down how to factor in the trim and other cost such as the wood etc plz and thank u, more videos like this plz
@@peechyman what it essentially is, is yield percentages, he’s breaking down what he paid for vs what he got. if u pay 10$ for 10# it equals 1$ per lb, if u cook it and what is actually servable is 5# when you’re done the yield was 50% (5# lost to trim and fat/liquid during the cook) so the product itself actually cost 10$ and you end up with 5#. 10$ % 5# = 2$ per lb. things like this add up when most people just look at things through a lens of the initial first cost vs the cost actually paid when the product is finished. trim was the leftover that get ground into other products that can be sold. he’s not factoring in the cost/profit of the trim made into other products (which is what most people were asking why not and what i explained above) but factoring in things like how many cords of wood are being used, what’s the cost per cord etc there are so many small moving parts a lot of the time people kind of lump them together in an estimated cost. i don’t know the case here but for instance he could say “i’m not going to go through all of these little random detailed costs so i’ll add on 1$ per dish (or per lb) for what a lot of restaurants would have as a “garnish cost” which is when they add say 2$ to a plate to cover garnishes or small sides. you could take a ribeye and know you’re cost is 20$ on the meat itself so a place would add maybe a 2$ garnish cost for the mashed potatoes and sauce and price accordingly from the dish cost of 22$ and probably sell that dish for around 62-70$ most likely, but costs get tricky and they may see the dish as a loss leader to get people through the door and sell it for 55$ knowing the tables will order beer/wine/cocktails or dishes like pasta that have very low food costs. sorry for long response but it’s a complex subject
@peechyman so I factor my wood in with my expenses (water bill, electric bill) because I buy a cord of wood every 6 weeks. It's consistent for me. My trimmings I use for my sausage and my smash burgers. I know I make it sound like trimmings are "free meat" but it's not. Don't think of your trimmings as free meat. You still paid for it, so if you make something with it, calculate that price you paid for the meat into the item. For instance, I grind my trimmings into hamburger meat for my smash burgers. I paid $3.99 per lb for that meat, and my burgers weigh 1/2 lb, so that hamburger patty cost me, basically $2. I multiply that number by 3 to cover my labor, food cost, and expenses. That gives me a $6 menu price, but I add $1 for my bun, $1 cheese, and $1 for the condiments, which I include my pickles and onions in condiments. That gives me a menu price of $9 for my smash burger. Also, when I calculate my sausage, I calculate it as I paid for the meat to make it because it wasn't free. Basically, just save anywhere you can. I wish I could find other things to use my trimmings for. I have a ton of trimmings. I'm about to start testing some all beef sausage to see if I can get rid of more trimmings than what I currently do with my current sausage recipe.
@@damonsrealtexasbbq yep 100% accurate. also the thing that doesn’t get factored in for us owners is actual time. all the extra time we put into things to keep everything going so employees can have things easier or more consistent. people look or hear prices for costs then say “oh well i could go make that for 10$ why is it 35$?”. all i ask right off the bat is “how much do u make per hour? because sourcing ingredients is an hour or hours out of your day are u not factoring in that time? what about driving to go pick up all the ingredients u need? what about having to actually sit and cook this stuff?” so many layers but it’s the only way for people to not think only from a standpoint of “this is cheap at costco i could go make this for less” it gets them to understand that these ingredients don’t randomly show up and trim and cook themselves etc. chef owners are always getting out through the grinder but we do it in private where the employees don’t realize all the admin crap it takes to keep everything else running as smoothly as possible.
I do not own a bbq place, but we frequent a bunch of spots over the summer. And I've seen prices even higher than 28 bucks. And as a consumer we tend to complain about food prices. So now i realize i was complaining about nothing. Thank you
I own a Smokehouse in the northern Philippines, how I wish we could get full US briskets at 3.99/lb.! The information for restauranteurs is spot-on. Brisket takes a lot of work to get right, and you need to make sure you are charging the right amount for it. This is probably not the meat you want to sell cheaper to get folks into your restaurant, use a cheaper and more forgiving cut if you need a leader to get people in. Great viceo, I look forward to seeing more in the future!
Fantastic video, as an aspiring chef, THIS is the type of info i need to learn. Not just ‘cooking/recipe’ videos. I’m gonna sub to you and i hope you keep making more content like this - the business end of things, for us chefs and aspiring chefs. Thanks!
LOL...listen man, stop throwing the word chef around. IF you did not attend a classical french School that teaches ALL of this and more your not a chef. you will always be a cook. simple as that. Go work at a restaurant for about a year....then another ....then another ........then learn what it takes to manage a kitchen, then manage food cost then manage menu design, labor cost ETC then...only then, can you come close to actually being a REAL CHEF after years of doing it. got it? ask me how i know. EDIT: there are a handful of culinary schools that offer degrees but are expensive. I suggest you look them up and attend one to be taken seriously in this field .
@@DigitalCity-sj4es if i may ask, are you a chef? Or what gives you the authority on this subject? Also, i said i am ASPIRING to be a chef. Lastly, i’ve been doing this since about 2015. And i agree, people do throw the word around too losly. One more thing, is that sincere advice? To tell a man in his early 30s to pay all that money and go to culinary school? Thanks for your reply in advance i want to hear what you have to say.
@@Geezuse Yes I am a chef, I have been cooking professionally for 16 years, form a private Chef to restaurants. As for your culinary school question, well,do you want to be a line cook forever? what are your goals? IF your want to take it seriously I suggest school. Most private Chef agencies require a degree. Not all but A lot of clubs want an Executive Chef with a Degree, So i ask again, how serious do you want to be in the industry?
@@DigitalCity-sj4es good point maybe i’m getting the wrong advice from people but i swear everyone else who went to culinary school tells me “ah biggest waste of money now i’m in debt blah blah”. I’d love to have that degree, and mostly have that knowledge. Trust me i can spot someone who went to school and they def have an edge. Its almost not an option for me at this point in my life. I hope i can get somewhere by continuing to learn off my chefs. Its how i support myself. And i do want to be a chef.
@@DigitalCity-sj4es- In a post made to brag about all your fancy schooling and and to put down a colleague you see as inferior, you should at least be able to show a decent grasp of grammar and word choice.
Great simple breakdown. The x3, for anyone curious, is pretty standard across all industries (Some are higher, some are lower, but ~30% is target). 1/3rd of the price covers the cost to make and sell the product, one third is taxes, and the final third is company profit that you usually roll back into the business (which could also include your salary). If you only double the price per pound you'll be paying uncle Sam and not paying yourself.
Right, but he did it totally wrong because those trimmings are not trash, they are used to make sausage so the cost of that trimmings is supposed to be applied to the sausage. So really, his sell price should be about $18.50/lb, otherwise you're paying for the trimmings when you buy the brisket and when you buy the sausage. The trimmings are worth 2x the brisket.
@@bobbygetsbanned6049 Maybe. -If- you can sell all your trimmings (which most butchers/BBQ restaurants can't). Realistically, 33% food cost is actually a bit on the high side as the target really should be 28-35% (28% you're doing good, 35%, you're on the edge). Between those two things it ends up working out to around the 3 times multiplier the video says. I don't think I've ever seen anyone that has half decent brisket selling it at $18.50/lb. That should be one indicator that the math is off...
I commend you for your efforts in teaching us about how brisket is sold. I am not a pit master but I have barbecue at home and I understand that cooking bbq is dedication. Best of luck and God Bless.
This is perhaps the best video I've ever seen. As a person who wants to open a sandwich shop this is as helpful as anything I've found The difference being your video is fire. So true know your value. Don't be afraid to charge proper $$$ too keep the doors open. Thanks Doug 😎
One reason you see those prices at some of the big-name places is because they are running a particular line of beef. For instance, Franklin's runs Creekstones, which is a very high grade of briskets that come from cows that are in a program with very high standards. They keep such good track of these bloodlines that they can tell you what cow each brisket came from. It's crazy. I'm not at that level yet. One benefit of cooking those briskets is that there is less waste because they trim them partially before packaging.
As an amateur bbq enthusiast, I daydream of doing a truck or trailer. Very cool video. Couple of questions: 1. Best method to keep pre-smoked meats (brisket, ribs, chicken,etc) warm and fresh for serving? Afraid of drying out, etc. 2. Best way to source decent meats wholesale when you are starting out? Thanks!
I don't run a restaurant but I just portioned my first butcher's cut brisket for home use. I was absolutely amazed at the amount of waste just in terms of the fat. I had almost 5 lbs of fat from a 13 lb brisket (which I did render into tallow but still.) Brisket has to be difficult and misleading to price because the meat is so relatively cheap per pound - BUT the required processing kills the yield.
@@samxherbert2468 Breaking down and portioning that fairly small 13 lb brisket was a real project. You have to separate the point from other muscles, and trim constantly. I'll look for a higher priced trimmed brisket next time.
God Bless you your family and your business brother. I’ve liked and subscribed and I plan on watchin more of these videos because pricing is one of my biggest struggles! 🙏🏾👨🏾🍳💙
Very cool, best video about basic cost of brisket i have ever seen, I subscribed immediately. Everyone wants to show you how they make the rub or set up their grill but this is the shit they really need to show…thanks
I don't own a bbq restaurant (though I've had several suggest I open one after retirement, waaaaay to much work) I have done a little catering and I keep abreast of local BBQ prices, and I understand the math here and the rule of 3x your cost. Brisket locally is about $17.99 a pound at local BBQ joints, in an area (central KY) where raw brisket by the pound prices are probably about average. Some areas of the country are higher, some lower. What I can say is, if a bbq joint in these parts was selling brisket for $28 a pound, they probably wouldn't be in business long because most people just wouldn't pay it. I understand market pricing and costs are going to fluctuate depending on the part of the country one is in, but $28 a pound is just high. Maybe it's reasonable in your neck in the woods, but (guessing here), by the time someone got a brisket plate with 2 sides, bread and a drink, I'm guessing that meal is going to set them back $40 or more, which is shocking. BBQ joints use to be places you could go get a good meal, at a reasonable price, if not actually pretty cheap. Those days are gone I guess in a lot of places.
A "meal" will have less than a lb, and probably closer to a half a pound. At 28 pp, a nice brisket meal, is going to be in the 20 dollar range with 2 sides and possibly a drink. If you can get brisket at 18 pp, I would speculate its not high quality and the cheapest grades available.
Location does have a degree of play on pricing but im willing to bet that those BBQ places you are talking about and possibly you are not making much money on the item, sure you can cut a deal and instead of making 5 dollars profit (example only) your shorting yourself and taking 3..well how long will you be able to sustain that as food cost DO fluctuate ...probably not long. Sure, you offer a great price but in time that great price will put you out of business. Im sure people have suggested you open a BBQ place and looking at your comment im going to add my 2 cents and say DONT DO IT.
@@DigitalCity-sj4es Don't worry, I'm not about too, especially in this financial environment. But, even if it was great times, a restaurant is not what I need as an after retirement job, waaaaay too much work and worry, especially a start up.
Overhead is KEY! I made a tartar sauce at LSU. DHH has a mandatory policy to carry $2M in insurance. My mark up was 35%. You have 7 day week like I did to realize a profit within 5 years. It can be overwhelming without the right staff and fun with the right staff. Great Video from a great Pro!
Great video Brandon. My wife and I had always figured on three times the price but didn't figure on the final weight factor. Thank you for the easy explanation. 😇👍
Thanks for sharing your experience! Very helpful for those who want to start a business > many mom and pop shop have no knowledge! When it comes to pricing food , labor , expenses like insurance, taxes ect ect > again thank you for taking us behind the scenes.
Thank you for the 5 introductions ("I'm gonna..." "I'm gonna...") and the demonstration on how to TARE your scale. I very much appreciate the detailed treatment of "putting the tray on the scale" - a truly arcane process that you have given everyone insight into!
So informative and such an articulate presentation. Thank you for sharing. My friends & neighbours always asking how much I’d charge them. Now I’ll send this link. New sub from a 🇨🇦 backyard bbq dad 👍
@@lobotomydiff the point went over ur head mate, lol. I’ll explain but can’t make you understand. If they watch a pro crunch numbers then they can see for themselves why I’d never ask friends & neighbours for $28/lb so ergo I’d never charge them. Lol. 🍺🍺
@@lobotomydiffbecause the video breaks it down. A lot of people scoff at brisket prices when they eat out. They see it at the store for $5.99lb and can’t understand how it jumps to almost $30 at a bbq spot.
We did BBQ at fairs and festivals for years, you are pretty accurate. We automatically assumed we lose 55 -60% in trimming and rendering. We would be close to $30.00 a pound. A Brisket sandwich with a 1/2 pound of brisket would be $15.50, with sides its $18.00. If your BBQ is great, people will pay it, if you get customers who wont, then you dont want them as customers. BBQ is not a steak house, you cannot just take it out of the fridge and slap it on a grill to order.
Just subscribed after watching this video. My wife and I have a small catering business up here in Wyoming and this video has been helpful. Thank you so much!
So excited to watch this, not only to look at if I want to do this nd start selling but also to be a better customer and stop bitching about how expensive brisket is. I am from Texas and live in Tennessee where hey they are getting lot better at cooking it then we first came up in 1999....thank you for this video
Excellent video. I own a food truck and do asian fusion tacos and pretty much went the same route. If you have good quality product people will be willing to pay.
That is awesome. Congratulations!!! Now I feel like it was all worth it knowing that at least one person who watched my video is carrying on the tradition of smoking meat. Thank you. You just made my day.
I stopped by my favorite bbq joint yesterday to see the price of a 1 meat plate w/2 sides was $19.99! It ain't cheap and that's why it's now a treat for me to get some bbq rather than a weekly stop.
Two points on the video: 1) The meat/fat trimmed from isn't "waist" (or at least shouldn't be). The meat/some fat can be ground into sausage/burgers, and any excess fat can be rendered into tallow to be used to help moisten briskets during Finnish cooking/resting times. 2) What I see in rural Texas, due to inflation and increasing meat prices (not just brisket), BBQ is becoming more "luxury", than food for the "common" man. Just the other day, a coworker paid ~ 23$ for a half-rack of ribs. Start-ups are being priced out of the game.
Great video, really enjoyed that you walked through the logic of it all, make a lot of sense, and really shows the fairness of it all. Win win for the pit master and the customer.
Thank you brother. If you happen to be passing by Wharton on a Thursday or Sunday, stop by. I would love to buy you dinner and get your opinion on a few things.
Brandon, enjoyed your video on pricing brisket. After 23 years owning bbq restaurants, would like to point out a few things you might be overlooking: the price you pay for briskets from food supplier is by the pound INCLUDING the purge in the bag, the bag, and usually the box! So removing the whole brisket from box, and pouring out the purge moisture can add a pound to a pound and a half to each brisket! Your mark up of 3 X would indicate an expected Food Cost of 33.3%. - but is it really 33.3%. -what is the actual, all in food cost of your side items? - you are guessing on the total cost of spices, (seen the price of black pepper lately?) condiments, paper goods, cleaning chemicals (can really bite you since rarely analysed), Labor, Tax on Labor, and overhead costs (rent, heating/cooling, insurance and REPAIRS on building and kitchen equipment!) The last area is where a small food truck, or small caterer can reduce cost over a "brick and mortar" restaurant! Still, the problem with trying to determine the cost of a pound of brisket, with pinpoint accuracy is great, but just GUESSING at 66% of your total cost is a recipe for disaster in this business. Having said that, there is always 3 people trying to rent a bbq restaurant that just went out of business by people who have been told they should open a restaurant, and don't have a clue! Thanks again, and keep the smoke coming!
Only pointing out that trying to measure exactly (or nearly so) the cost of the Brisket and basically guessing at the other, hopefully, 66.6 percent of the cost of operations the operation is a dangerous way to run the restaurant!
Great video. So informative and gives an insight into what these businesses have to charge to make a profit just to stay in business. But all the brisket trimmings are not wasted either. Most brisket trimmings are used to make sausage. With this insight, I now have a better understanding of why they charge what they charge and I can respect that as a customer. And maybe one day after I learn to perfect my brisket I will open a BBQ Shack myself. BIG MAYBE. LOL...
I thought this was common knowledge but then again I've owned my own restaurant before. You have to pass on the costs period and mark up at least 40% or you aren't going to make it. You have to figure out labor, power, taxes, rent, on top of marking up your food properly. You have to at least break even on your overhead which means you have to bake all that cost into what you charge per plate then add the food cost mark up. Markup is your "profit" or can be eventually once you cover your start-up costs.
The reason bbq joints are going out of business is because nobody can afford to pay $60 -$75 for lunch. Buy yourself a good smoker and make your own it's cheaper and better
Most people don't have the time or dedication to do a proper smoker brisket, I'm talking about wood burning. There's a lot of backyard smokers and they'll use a pellet grill, which is convenient but lacks in flavor.
