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[Music] we have a formula for that for each individual recipe that we produce which tells us exactly what it's cost us to produce and from that figure obviously we derive what we need to charge to hit the food cost that we know we need to hit we're always looking to be 30 percent or less and in some cases we're looking to be 26 percent and possibly less if we can get there we're not big fans of loss leaders right so we're if something's over the food costs we're trying to hit we're pretty much its on the chopping block we love this dish but we can only charge X for this dish and it's killing us when you're talking about creative process that's so unattractive but it is an economic reality you get into trouble when your most popular dishes have your worst cost of goods turning sandwiches into a profitable business model is very challenging very challenging because as you know sandwiches are expected to be a certain price point it's really hard to charge more than let's say 12 or 13 dollars for a sandwich and the way that we dealt with that was creating menu items that make a good profit to balance out the ones that don't the dry-aged bone-in rib eye is $50 when we receive it before we've ever touched it it cost $50 you cannot mark that up the way you could annoy stur rockefeller you just can't we might have a hamburger that we charge $15 for and a customer might be able to go down the street and have a hamburger for $7 but if that place down the street doesn't have great music doesn't have great lighting doesn't have the entire kind of atmosphere then we think we have the upper hand in the beginning we had a lamb sandwich it was a PITA we made the pita the lamb was sourced locally the sandwich if you priced it out at a food cost that was at least breaking even it would have to be an $18 sandwich but you just know that you can't serve a sandwich for $18 so you take a loss on that one you know you serve it for 14 if you can or over 13 and then you have another sandwich grilled cheese that has a low a low cost to make it but it's still popular and then that one is also say ten or eleven dollars you've got better margins on alcohol it doesn't go bad it requires less labor I don't want to be in the bar business but it's a vital ingredient in a successful restaurant you buy a bottle it'll sit there and when Jared comes to work tonight he'll start pouring that bottle I mean it you really do make your money on alcohol when I see BYOB restaurants or I I don't understand I mean especially on King Street if you didn't sell alcohol I don't know how you'd make it we have a CFO and she's consistently and constantly checking to make sure what are the dishes that are selling how much do we charge for them what are they bringing to the bottom line what is our margin and does the whole soup add up to two profit this is an Italian restaurant people expect to have the opportunity to ask for like some Parmesan cheese on the side right or chili flake so a tiny little ramekin of parmigiano-reggiano may not seem like that much but let's say that you know ramekin cost seven cents just pick a number out of thin air okay seven cents not a big deal to that one table if that happens 50 times in a night times seven days a week per month per year all of a sudden at the end of the year you've given away $15,000 worth of parmigiano-reggiano huge deal that's a raise for someone that's a profit distribution for someone [Music]