So you think every item on the Denny’s menu is at least a 25% profit margin for the company? It’s like 2.2% overall. They just let employees discount one meal per shift as a little bonus and incentive to work there, taking a small loss when they decide to use it
You’re confusing food yield with profit margins. I run PnLs for restaurant corporations, you think every time a company runs a 25% sale they operate on a EBITDA loss? A BoGo would bankrupt them lmao
A 25% likely doesn’t even show on their high discount reporting
They run discounts at all times, discounts are a mask for the mathematically uninclined to present a deal after hiking a price in the backend or at minimum to reduce a ticket average to an amount less then a comp % would earn.
A restaurant does not operate in loss leaders, it’s not a grocery. Managers can free out meals for opportunities, that’s granted. A regular team member would never be given a discount that is approved to be unprofitable because no sale is intended to be unprofitable.
The one and only thing that matter out of meal cost for a restaurant is the food cost yield itself, and the profit is determined after factoring in the labor for FLM and the backend costs -royalties if franchise for the ebida results
They run discounts that their marketing team figures out should be profitable in the end. That doesn’t authorize employees to steal directly from them using unauthorized discounts and pocketing the difference
I never argued about the morality of him using his one alotted emp meal or their policy, simply that you think a 25% discount makes a meal unprofitable and your evidence is their net profit margin is laughable, provably wrong by the industry itself and is practically apples to oranges. Meanwhile your defending it from multiple people like it’s your 9-5
Their margins are around 2%, which is less than 25%. It’s not complicated, at all. It’s insane how many of you can’t understand that stealing 25% of a meal’s value makes it unprofitable for chain restaurants
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u/harpswtf 2d ago
So you think every item on the Denny’s menu is at least a 25% profit margin for the company? It’s like 2.2% overall. They just let employees discount one meal per shift as a little bonus and incentive to work there, taking a small loss when they decide to use it