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Stick to the cooking – restauranteurs and accounting knowledge?


Cuisine 3 etoiles de Jacques Lameloise

Cuisine 3 etoiles de Jacques Lameloise (Photo credit: Wikipedia)

In October of this year, Michelin star chef Derry Clarke had a go at Dublin restaurants selling “cheap meals” – see here. I guess Clarke was thinking from his own view when he said “the number of restaurants offering meal deals at economically non-viable prices just isn’t sustainable, it’s the same cost in McDonalds, but we have all of the overheads”.

He may have a point about the number of restaurants being sustainable, but Derry, stick to the cooking. Any management accountant could figure out that even if meals are sold cheap (and I doubt they are below cost as Clarke suggests), they still make a contribution towards overhead costs. It would be better to have 50 guests in a restaurant earning a contribution of €5 a head (€250 in total) than having an empty restaurant. In the latter case, costs such as labour, heating, rent and so on are still incurred.

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About martinjquinn

I am an accounting academic, accountant and author based near Dublin, Ireland.

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