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The hidden economics of restaurant dishes: chefs break down menu pricing and profit margins

By

Clare Finney

16h ago· 6 min readenInsight

Summary

Two chefs reveal the hidden economics behind restaurant menu pricing, using specific dish examples to break down costs of ingredients, labor, overheads, and profit margins. The article highlights how vegetable dishes can be more expensive and labor-intensive than meat options, and how restaurants operate on surprisingly thin profit margins per dish.

Source

Hacker NewsThe hidden economics of restaurant dishes: chefs break down menu pricing and profit marginstheguardian.com

Key quotes

· 3 pulled
It's easy to assume vegetable dishes should be cheaper than meat. Vegetables usually are, but vegetable dishes are more labour-intensive. It's simple to slap a steak on the grill, but you can't just plate up a carrot.
This dish is interesting, because asparagus can actually be more expensive than some proteins. It costs between £15 and £20 a kilo (it was £9/kg not so long ago), mainly because it's harvested by hand and the cost
Asparagus, smoked emulsion, watercress, sourdough (starter) at Apricity, London W1. You pay: £21. Restaurant profit: £1.65
Snippet from the RSS feed
Two chefs lift the lid on the expensive business of creating menus they love

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