Chapter 817 - 816: Rectifying the Canteen
"By the canteen’s serving standards, this pot of pork and potatoes can make fifteen portions, and each sells for forty cents, so this pot of vegetables can sell for six dollars."
"One pound of pork belly and four pounds of potatoes, based on the current market price, potatoes are forty cents per pound, and pork belly is two dollars fifty cents. However, from what I understand, Boss Lin has a long-term partnership with wholesale suppliers, and the average price of meat and vegetables is about 20% lower."
"The cost of a liter of cooking oil is around five dollars, and this dish used fifty milliliters of oil. Adding spices and gas costs, let’s round that up to fifty cents, so the cost of this pot of vegetables is three dollars eighty cents."
"A cost of three dollars eighty cents, with a sale price of six dollars, yields a profit margin of 36%. Boss Lin, you’re earning much more than us restaurant owners."
Listening to Shen Mingzhu’s calculations, Lin Wu began to realize what she was getting at.
"President Shen, that’s not quite how the accounting works. I also have rent, utilities, and labor to pay for."
Shen Mingzhu nodded, "Then let’s cut that in half to account for rent and labor costs, and you still have a net profit of 18%. In the fast-food industry, that profit margin is already quite decent."
Lin Wu offered a forced smile, "My small business can’t compare with yours, President Shen."
Shen Mingzhu said, "No matter the size of the business, there is a universal principle: integrity is the foundation, quality is paramount. Skimping on work to chase after excessive profits will only lead to a narrowing path. Don’t you agree, Boss Lin?"
After hearing this, Lin Wu understood everything.
