LogFAQs > #978822683

Considering revenue for the month is around $21k, and cost of goods sold is about $8k. Operating expenses account for a fixed rate of $11,000, leaving a net profit of usually 2-3k a month.

My friend works 6 days out of the week, 10 hours a day at his restaurant. I just found out today, they were pricing their menu based on cost of goods sold and never factored in operating expenses. Basically a $40 crunchy roll platter with 40 pieces of sushi, only profits them $5 ish. That means on a good day, they makes around $100 for 10 hours of work. It's saddening because their business model is based on "Japanese" business knowledge where they naively thought running a business in the US is similar to Japan. It's not. In Japan you can get away with selling for cheap because there's not much operating cost to worry about.

Should they raise the price of their crunchy roll platter to at least $50? How would they explain to their customers the sudden $10 price increase? I know CE has some super smart financial consultants/accountants. Will you be so kind to suggest anything that would help? These are good people and I hate to see them on the losing side.