Delivering Dinner—and Keepıng the Profit
Recently, Inc.’s legendary Norm Brodsky visited Michelle Gauthier and Justin Schwartz, founders of the thriving New York City–based fast-casual chain Mulberry & Vine. Mulberry & Vine has carved out a niche in a hotly competitive market with its healthy fare—but like many city-based restaurants, it faces challenges with rising costs and the advent of delivery services like Grubhub. Luckily, Norm was there to lend an ear—and weigh in.
NORM: So, in the restaurant business, it boils down to percentages. What is your rent as a percentage of your total costs?
Michelle: It’s less than 10 percent at all of our locations.
Perfect. Ten percent is the magic number. What about food costs?
M: About 27 percent. With packaging, though, we’re probably at 30, 31.
OK. That’s an acceptable rate.
