Coast river business journal., June 15, 2022, Page 9, Image 9

COAST RIVER BUSINESS JOURNAL
FEATURE STORY
JUNE 2022 • 9
Continued from Page 8
Rachel Gaetano, co-owner of Gae-
tano’s, has now made it a routine to
keep track of food costs on a spread-
sheet with the help of a business
adviser.
Since opening last year, Gaetano
said that all their meat offerings have
become more expensive, such as pork,
which she said jumped from $1.57 a
pound to around $2.
Gaetano wants to be careful when
adjusting menu prices to account for
changes.
“We don’t want to just slap a dollar
here, a dollar there,” she said. “Some
of our packaged items, we’re gonna
have to increase just to keep up with
costs that are rising. We don’t really
want to but it’s kind of like you have
to. Anybody in the grocery store sees
things are more expensive.”
For budgeting menu prices, Strom-
quist recommended the 30/30/30/10
rule. That means breaking down menu
items so that 30% of the price covers
food cost, 30% labor and 30% over-
head, leaving 10% net profit.
In that equation, food cost means
accounting for the total price of the
meal, including seasonings, dressings
and containers.
It also includes what doesn’t make
it on the plate.
“Things are more expensive than
I think, because you have to account
for waste, so we have the price we get
it for and then we trim it, well then
you’re losing that amount of product,”
Gaetano said.
For example, when she buys a
pound of basil it yields half a pound of
usable product after she removes the
stems.
Gaetano said she feels more con-
fident about revisiting menu prices
after working with a small-business
adviser.
“I’m hoping that when we have to
do this price increase, that the commu-
nity understands the reasons behind
it,” she said. “But I feel a lot better
about doing it the way we’re doing
it. It’s a completely informed deci-
sion. We’re putting our actual costs
and everything. We’re not just saying,
‘Oh, turkey went up so let’s make that
a little bit more.’ That’s been super
duper helpful.”
ABOVE: Costs for some imported items have been increasing.
LEFT: Matthew Gaetano prepares meat at Gaetano’s Market and Deli.
PHOTOS BY ABBEY McDONALD