Entrée Economics or What does restaurant meal really cost?

Sometimes you have a feeling: The food is good, but it didnt seem good enough to match the price

The average menu price rose 13% during the past five yearsedging out inflation and far outpacing the rise in wholesale food prices The average menu price rose 13% during the past five yearsedging out inflation and far outpacing the rise in wholesale food prices In some hot spots such as New York, Los Angeles and San Francisco, even the once-untouchable $50- a-plate barrier has finally been shattered In some hot spots such as New York, Los Angeles and San Francisco, even the once-untouchable $50- a-plate barrier has finally been shattered

What do restaurants really pay for the stuff on the plates? Restaurants charge five times more for whiskey and wine than they pay for them Restaurants charge five times more for whiskey and wine than they pay for them Mussels turn out to be one of the biggest cash crops with markups of as much as 650% Mussels turn out to be one of the biggest cash crops with markups of as much as 650% If you are vegetarian, the price of your entrees multiples If you are vegetarian, the price of your entrees multiples

but The biggest sticker shock of all may be on a big pink fish. It costs just $2.50 a pound wholesale and is often priced at a whopping 900% markup or more

Although… Focusing on the cost of a restaurant meals raw ingredients is like calculating the value of a Picasso based on the cost of the paint Focusing on the cost of a restaurant meals raw ingredients is like calculating the value of a Picasso based on the cost of the paint

The 300% solution Restaurants aim for an overall food markup of 300%or four timesthe cost of the raw ingredients Restaurants aim for an overall food markup of 300%or four timesthe cost of the raw ingredients

Still, why dont restaurants simply charge more for high-cost dishes and less for cheaper ones? Restaurants cant ratchet up the rates enough on gourmet items, so they make it up on the cheap stuff

The notoriously risky business of operating a restaurant has become a bit more stable The notoriously risky business of operating a restaurant has become a bit more stable According to Dun & Bradstreet, 100 out of every 10,000 U.S. restaurants failed in 1997