It seems that no corner of modern life has been left untouched by inflation, but the hospitality industry may be feeling the pinch more than others.
A Victoria, BC restaurant has made it its mission to post a full breakdown of what actually goes in your burger and fries to make menu prices transparent and give people an idea of what goes into your burger and fries. why things have gotten so expensive in restaurants.
In early February, Ferris Grill & Garden Patio posted a notice on its door with the intention of showing “transparent prices” for its cheeseburger and fries, which are on the menu for $21.50.
The full breakdown, according to the poster, is as follows:
- Wages and Health Benefits $9.14
- Cost of ingredients $7.10
- Rent $1.44
- Deliveries $0.50
- Utilities $0.48
- Accounting and Law $0.45
- Credit card fees $0.38
- Repairs and maintenance $0.36
- Insurance $0.21
- Laundry $0.19
Total cost: $20.25
Profit: $1.25
The point of breaking down the individual cost of the burger, the restaurant said in an Instagram post, is to show the reality restaurants face when operating “in this post-Covid world.”
“As business owners, we strive to create a place that can be enjoyed by the community. We’ve always tried to provide good value for our guests, locals and tourists alike,” the note adds. “We also believe in a model where employees are paid fairly, receive medical and dental benefits, and have many opportunities for advancement.”
The cost breakdown above was calculated using Ferris’ actual spending in 2022, and with grocery costs rising even further in 2023, profit margins have likely narrowed even further since then.
These costs also do not include marketing expenses or charitable donations.
The collapse and the restaurant’s transparency of what actually goes into day-to-day operations has obviously struck a chord with people, and while some have supported the move, others still feel that $21.50 is too much for one burgers are.
“Thank you for your transparency and for sharing. It’s so important that consumers know the reality and how important it is to support local businesses!” One person commented on the post.
Another said, “For a burger and fries, I think $14 is a fair price,” and asked, “Why are the wages so high?”
The problem, as the restaurant notes, is that everything has gotten expensive, and foodservice workers are also earning a living wage so they can then, in turn, afford to eat themselves.
And while it’s easy to imagine that the only factors that add to the cost of a burger are the ingredients and the labor, the truth is there’s a lot more that goes into keeping restaurants afloat, let alone staying profitable.
What’s considered a reasonable price for a meal depends heavily on who you ask, but Ferris’ burger demonstration pulls back the curtain on an industry that’s currently facing a significant uphill battle – one from which many have not emerged unscathed will emerge.
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