![]() “I can assure you there is not a restaurant out there ripping you off,” the business said. Ingredient costs and taxes leave the business with $8.40 out of a $14 burger.īut that $8.40 is split between rent, wages, gas, electricity, insurance, internet and software fees, equipment repairs, and panel-beating services for food trucks, the post continued. Like other burger chains, Burger Head has struggled with ingredient price inflation over the last year: oil has doubled in price, the business said, ahead of major spikes in the wholesale cost of chicken and potato chips. “To be honest a lot of our decision to shut the stores down has come down to protecting our quality of life and our mental health.” Solving the restaurant pricing mysteryīurger Head’s most recent behind-the-scenes post debunks myths about restaurant pricing, exposing diners to the financial realities of operating a commercial kitchen, and what the business described as “an accountant’s worst nightmare”. It makes you really ask what is really important to you, the business or your family. “We started a business to provide a life for loved ones but at what point is the sacrifice worth it. ![]() “I (Tim) am writing this post and I’ve watched my best mate (Josh) say goodnight to his daughter over Facetime too many times or learning about a ‘first time she did this’ over Facetime,” Rosenstrauss wrote. The financial toll also came at a cost to the team’s mental health, the business revealed, describing the effort of keeping the enterprise afloat as “almost overwhelming”. If the brick and mortar revenue was a game of snakes and ladders let’s just say lots of snakes, not many ladders.” Revenues would immediately plummet that week and then not recover ever. QR-code rivals Mr Yum and me&u to merge in major shakeup to Australian restaurant-tech sector Read more “That dreaded first Tuesday of every month for the past year and a bit was always dreaded,” the business wrote. Noting that Lowe alone was not responsible for those rate hikes, Burger Head drew a clear line between spiking loan repayments, lower consumer spending, and shaved profit margins. “If you own any property or a business there’s a good chance you know this fella and if you’re like us you have a voodoo doll of Mr Lowe,” the business said. That led the business to highlight the outsized influence of former Reserve Bank of Australia governor Philip Lowe, who oversaw a dozen interest rate hikes in 13 months. “A voodoo doll of Mr Lowe”Īs those expansion costs weighed on the business, so too did the cost of ingredients and wages. This rapid growth can “almost be pinpointed at the time things started to unravel for us,” they added. ![]() “In hindsight, if we’d only done 1 of these stores and kept our existing prep kitchen we would’ve had the resources to really execute store #3 and would still be in business. That period of rapid growth “can almost be pinpointed at the time things started to unravel for us,” they said. ![]() “We had budgeted the builds well however it was other issues we ran into in the process that blew things out and didn’t enable better execution of some things. “This growth was something we weren’t as well prepared for as we should’ve been and we ran into our first hurdle….Managing your CASH FLOW!” they said. The business dreamed of 100 locations nationwide but found growth “very, very expensive”, to the point where a fifth location in Box Hill never got off the ground. “It’s something you heard over and over from teachers and parents… to just SLOW DOWN… The advice we should’ve taken in our business too.” The first major setback was the push to establish the Blacktown and Casula stores in a spurt of post-lockdown expansion, Rosenstrauss and DeLuca said. ![]()
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