undefined | Better HN

0 pointsspike0217y ago0 comments

Not sure where you're getting those numbers in your first paragraph (other than the minimum wage increases).

I live and work in the downtown part of San Jose, and on some days of the week work in downtown SF (SoMa near Caltrain).

I rarely spend $12-15 (more so in SJ but also in SF). Usually the significant cost is adding a soft drink of some sort (soda, juice, tea, etc.) because I'm finding restaurants are increasing the price of those for whatever reason ($2.50 at some).

Definitely wouldn't say $10 for a full meal is "unrealistically low". Perhaps it's really a matter of choice. Some people prefer to get lunch often from New American restaurants and similar where you need to tip, etc. Some don't mind going to simpler places like a taco truck around the corner, or Panera Bread/Chipotle/etc. (although I will easily admit Panera's cost has increasingly gotten more expensive, as you describe).

0 comments

2 comments · 1 top-level

HenryBemis7y ago· 1 in thread

> because I'm finding restaurants are increasing the price of those for whatever reason ($2.50 at some).

Soft drinks are easy money. Receive, unpack, refrigerate,sell.

A soft drink that costs $0.10 to buy in a store and sells for $2.5. That's a 2500% profit margin.

If the delivery system is not a bottled/canned productbut comes in a keg, and can deliver 50 litres instead of 330ml then the margin is higher.

Of course the expenses of electricity, storage, labor, remain, but it makes a sweeter deal for the restoranteur to employ their staff for 10% of the time with 2500% margin.

I remember watching Gordon Ramsay in many of his episodes stating that restos are/should be operating with a 25% margin.

FroshKiller7y ago

It's a 96% profit margin. With a price of $2.50 and a cost of $0.10, the profit is $2.40. Thus the margin is 2.4/2.5, or 0.96.

j / k navigate · click thread line to collapse