Wednesday, March 4, 2015

Totally Not Sweet

From the Washington Post

Food in general is tough to make money on. Restaurants have long relied on the mark-up they tack onto drinks, not grub, to boost profits. As food costs soar, that reality has only become more true, because there's a limit to how much people are willing to pay for different parts of their meal. For many mid-scale restaurants, that limit is $30 for entrees, no matter the ingredients, Todd Kliman noted recently in the Washingtonian. For desserts the ceiling is much lower, and much less flexible, says Cowen.

"Dessert needs good ingredients to taste good, but you can't psychologically convince people to pay even $20 for dessert," Cowen said. "You can't really go cheap on it, but you really can't charge extra either."

I was just last night enjoying one of my favorite desserts and thinking to myself "it's probably tough to make money selling desserts." Sure is. I always check the check for errors, whether in my favor or not. That's the right thing to do. I saw that they charged us $8.25 for an item listed on the specials board for $5. Didn't want to beat them up over $3.25 on a night when the restaurant, one of my favorites in Miami, was totally empty aside from us.

Tough business!

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