I want to send this video to every person who has said to me, "Your bbq is great, why don't you open a food truck?" This is why I'm happy to stay in the backyard and cook for family and friends.
Spot on. My brother in law relatively recently was trying to talk me into opening a food truck. He’s got cash to burn and said he’d invest to help get it going. It just had to be a hard “no” for me. First, I would be very reluctant to get into business with family or close friends. Second (and this is actually my main reasoning) just doing basic estimates off the top of my head, the start up costs would be significant. I’d need to get a bigger pit (I have a Humphrey’s Battle Box, and it’s great, but it’s too small for commercial use). Then there’s the fact that I usually locally source the meat I smoke. For friends and family cooks, the extra cost for farm to table meat is worth it. If I went into the BBQ business I’d have to consider shifting gears to potentially wholesaling meat, and I’m someone who likes to know exactly where what I’m eating came from. Then there’s buying and setting up the truck itself. Then, after thousands and thousands of dollars are spent on start up costs, we get into the day-to-day that we see in this video. Everyday, seven days a week, no days off. I feel like too many people don’t take all this into account when they’re romanticizing opening a business, no matter what it is.
I did this. Bought a nice 250 gal smoker. Then the cost of meat skyrocketed, the cost of WOOD of all things was preposterous, and marketing was insane, not to mention legit biz license stuff. So much more than I planned. Shut it down after 8 months and only a few catering orders.
Food cost are bad. Throw in finding a steady supply of wood. The biggest factor is the time it takes to properly smoke meat. Time is money. No, I too will stay in the backyard. I hear people at good bbq places complain about prices and they just don't get it. Most bbq places are not that good or they go out of business because they cut corners to try and reduce price.
When I go to a place that's iconic and more of an experience than a typical restaurant, I don't mind pricing. It's to me like going to a baseball game or amusement park. 15$ a beer is what's to be expected. So don't mind the mark up. L&L, or any superstar bbq place can really charge what you want. As a consumer I'm not complaining.. anyway great explanation and video Evan!!
Good video. People complain for paying $30 plus for a pound of brisket at a restaurant, not realizing the costs involved. BTW, at 74% yield, each useable pound of brisket is costing you $6.49 /0.74= $8.77
Thanks so much for the knowledge because most videos out here don’t go over cost like this. I’m gonna watch this one again and save it to my favorites.🤩
Hey man, as a 1st year truck owner operator, I want to thank you for these videos. I’m going to be watching this a few more times when I can sit and take some notes. Happy Holidays to you guys.
I sure appreciate you explaining basic business on this video. I sure hope customers see this and understand why the price of a great meal portion is a few dollars more than what they are used to. I personally think your retail price should be 20% more than your current price.
I love this insightful look into the business side of things. Having run a similar, non-BBQ style cary-out place, most people don't understand how the numbers actually come together. Love your commissary btw.
The vast majority of the time business doesn't go well is not because of the product, but rather because of not knowing the economical aspects of running a business.
Great example Ive been running a food truck for a few years and have just started really examining my total returns. My money is made on pork and sides because my return is nearer 80% before other costs. people think you are taking every penny home with you but you need to keep money to pay for the next event so you never see all the profit. As you say at the end of the day you have to make money. btw Im paying more per lb for frikin ox cheek! (UK based)
I think the initial calculation about raw price of brisket at 74% yield should be $6.49/0.74 * 4 = ~$35/lb (divide by your % instead of multiplying by 1 + %waste)
This is what I came to the comments for. This also makes maximizing your yield even more important. At 36% yield, true price becomes $6.49/.36 = $18/lb. Then you should be charging ~$80/lb to be profitable!!
One of our goals is to get down to the elusive 25% next year. You’re absolutely right that brisket is the loss leader and we sell quite a bit of it. We try to always sell it all and if not, repurpose in beans, tacos, etc.
Evan busting out his fall back on job, high school math teacher. LO=MxM+(C+TBBQ). Or in layman's terms: Lights On=Make x Money+(Cook+TastyBBQ). It's Arithameticuals man
So basically you are pricing your COP at 25% and then your value adds all in at 33%. Are your prime costs around 65%? Thank you! This is helpful. Inflation is kicking everyone in the teeth.
Depends on your menu but we are pretty minimalist with cabinet warmers, a hot plate to toast buns, yetis to use as a cold well, and a dorm fridge for backups.
I'm curious: why do such elaborate math? Couldn't you just look at your brisket case price for a given week, and then look at your total sales of brisket and brisket products (burgers, chili, etc) after the week ends? Just divide the Cost into the total sales and arrive at Cost of Sale percentage? Is there an advantage to scrutinizing the yield in such a manner?
We've gotten a lot of questions about yield over time. People are curious of how much you lose in weight of a brisket when it's cooked. You're also not taking into account inventory if there is any left over.
This is very insightful. Curious if you use machine learning or some other statistical model to forecast sales or is it based on your expectations and intuition? I’d be interested to see how overall costs breakdown at the labor and material levels such as cooking wood, spices, toppings etc.
I want to send this video to every person who has said to me, "Your bbq is great, why don't you open a food truck?" This is why I'm happy to stay in the backyard and cook for family and friends.
Spot on. My brother in law relatively recently was trying to talk me into opening a food truck. He’s got cash to burn and said he’d invest to help get it going. It just had to be a hard “no” for me. First, I would be very reluctant to get into business with family or close friends. Second (and this is actually my main reasoning) just doing basic estimates off the top of my head, the start up costs would be significant. I’d need to get a bigger pit (I have a Humphrey’s Battle Box, and it’s great, but it’s too small for commercial use). Then there’s the fact that I usually locally source the meat I smoke. For friends and family cooks, the extra cost for farm to table meat is worth it. If I went into the BBQ business I’d have to consider shifting gears to potentially wholesaling meat, and I’m someone who likes to know exactly where what I’m eating came from. Then there’s buying and setting up the truck itself. Then, after thousands and thousands of dollars are spent on start up costs, we get into the day-to-day that we see in this video. Everyday, seven days a week, no days off. I feel like too many people don’t take all this into account when they’re romanticizing opening a business, no matter what it is.
I did this. Bought a nice 250 gal smoker. Then the cost of meat skyrocketed, the cost of WOOD of all things was preposterous, and marketing was insane, not to mention legit biz license stuff. So much more than I planned. Shut it down after 8 months and only a few catering orders.
@@omcorc NEVER do business with family or friends.
I hear this all the time and I say the same 👍
Food cost are bad. Throw in finding a steady supply of wood. The biggest factor is the time it takes to properly smoke meat. Time is money. No, I too will stay in the backyard. I hear people at good bbq places complain about prices and they just don't get it. Most bbq places are not that good or they go out of business because they cut corners to try and reduce price.
This is exactly what most folks that start a food business DO NOT think about and this is the one that will shut you down. Solid vid!
Food cost and labor cost are factors for sure. Allot of customers don't understand why prices are set the way they are. Awesome video!
I've watched this video at least 10x on Patreon and just watched twice. This is a Masterclass on food/operating costs. Thanks Evan and Sawyer!
Love what you guys at L&L are doing!!! If most people had any idea what kind of work and care go’s into good bbq, price wouldn’t be a question.
When I go to a place that's iconic and more of an experience than a typical restaurant, I don't mind pricing. It's to me like going to a baseball game or amusement park. 15$ a beer is what's to be expected. So don't mind the mark up. L&L, or any superstar bbq place can really charge what you want. As a consumer I'm not complaining.. anyway great explanation and video Evan!!
Good video. People complain for paying $30 plus for a pound of brisket at a restaurant, not realizing the costs involved. BTW, at 74% yield, each useable pound of brisket is costing
you $6.49 /0.74= $8.77
Thanks so much for the knowledge because most videos out here don’t go over cost like this. I’m gonna watch this one again and save it to my favorites.🤩
Hey man, as a 1st year truck owner operator, I want to thank you for these videos.
I’m going to be watching this a few more times when I can sit and take some notes.
Happy Holidays to you guys.
These videos are incredibly valuable, Evan. I certainly wouldn’t be upset with you if you guys could find a way to do this side of the business more.
I sure appreciate you explaining basic business on this video. I sure hope customers see this and understand why the price of a great meal portion is a few dollars more than what they are used to. I personally think your retail price should be 20% more than your current price.
I love this insightful look into the business side of things. Having run a similar, non-BBQ style cary-out place, most people don't understand how the numbers actually come together.
Love your commissary btw.
Incredible insights and such a great watch!
This video is underrated. Not everyone is lucky enough to have someone explain it like this.
The vast majority of the time business doesn't go well is not because of the product, but rather because of not knowing the economical aspects of running a business.
THANK YOU
This was super informative and interesting more videos like this
Great example Ive been running a food truck for a few years and have just started really examining my total returns. My money is made on pork and sides because my return is nearer 80% before other costs. people think you are taking every penny home with you but you need to keep money to pay for the next event so you never see all the profit. As you say at the end of the day you have to make money. btw Im paying more per lb for frikin ox cheek! (UK based)
You've been running a food truck for years and just now looking at the numbers?
Very very interesting. Thank you for sharing!
I think the initial calculation about raw price of brisket at 74% yield should be $6.49/0.74 * 4 = ~$35/lb (divide by your % instead of multiplying by 1 + %waste)
This is what I came to the comments for. This also makes maximizing your yield even more important. At 36% yield, true price becomes $6.49/.36 = $18/lb. Then you should be charging ~$80/lb to be profitable!!
I’m admittedly not a math guy, thanks for the help, guys!
$80/lb what a rip off.
Fantastic, thank you.
Another great video. Thank you
This is an amazing video! Thank you!
Fantastic content! Thanks a ton
One of our goals is to get down to the elusive 25% next year. You’re absolutely right that brisket is the loss leader and we sell quite a bit of it. We try to always sell it all and if not, repurpose in beans, tacos, etc.
There is a bbq spot here in socal called Smoke n Fire Eatery and they do brisket tacos and burritos and loaded fries. Definitely gotta creative
Evan busting out his fall back on job, high school math teacher. LO=MxM+(C+TBBQ). Or in layman's terms: Lights On=Make x Money+(Cook+TastyBBQ). It's Arithameticuals man
So basically you are pricing your COP at 25% and then your value adds all in at 33%. Are your prime costs around 65%? Thank you! This is helpful. Inflation is kicking everyone in the teeth.
Id try to use brisket trimmings for sausage, meatballs, and tallow.
Great info, thank you
Thanks for watching!
Good info.
Can you do a brake down of what equipment is needed for the complete operation.
Depends on your menu but we are pretty minimalist with cabinet warmers, a hot plate to toast buns, yetis to use as a cold well, and a dorm fridge for backups.
I'm going through all your videos trying to find the other business videos you mentioned, can't find any.
Yeah we never did them. The process continues to evolve.
Hi Did you end up doing the inventory video? I haven't been able to find it so thought I would ask. Thanks!
Have not yet since we have changed our systems a few times, but its on our list for the new place.
Pro Tips
I'm curious: why do such elaborate math? Couldn't you just look at your brisket case price for a given week, and then look at your total sales of brisket and brisket products (burgers, chili, etc) after the week ends? Just divide the Cost into the total sales and arrive at Cost of Sale percentage? Is there an advantage to scrutinizing the yield in such a manner?
We've gotten a lot of questions about yield over time. People are curious of how much you lose in weight of a brisket when it's cooked. You're also not taking into account inventory if there is any left over.
This is very insightful. Curious if you use machine learning or some other statistical model to forecast sales or is it based on your expectations and intuition? I’d be interested to see how overall costs breakdown at the labor and material levels such as cooking wood, spices, toppings etc.
This math is very sobering for backyard dudes wanting to make the leap.
Very nice video! Is this something you teach at the nsbbq university school?
This isn't on the official curriculum but we have had similar side discussions with many students about costing.
Lots of great cooks that are shitty businessmen, there's a reason why they call it the restaurant business