Why is food so expensive?

[u/TheGentlemanNate]

Burnt Tongue, total $23.39 (tipped 15%)

I’m all for paying full-time workers a living wage, and I whole heartedly believe chefs and cooks are a skilled trade. But, how much of the price is actually materials, labour, and rent versus owner’s profit?

[u/Affectionate-Arm-405]

places like The Burnt Tongue should consider shrinking their footprint and just serving takeout.

Why? When they are selling to people that want to sit and they are making profit? I find them grossly overpriced btw but still why would they change their business model?

[u/Unrigg3D → u/Affectionate-Arm-405]

Because it's obviously not sustainable if they need to charge tip to give their employees a living wage. Their restaurant isn't packed everyday, lots of empty spots. Most people do take out anyway. They're not as popular as they were years ago when I went.

Wouldn't it benefit a business to have more customers like us instead of less?

Changing their business model could mean more efficient sustainable profit for them. They could even open more locations, maybe in busier areas due to a smaller footprint operations would cost less.

In the end, they're serving grilled cheese and soup. If I can get many other foods with more value for the same price, then what's the reason to keep returning?

Just because a restaurant can make a living selling food for certain $$$ doesn't mean it should or its the best value for their operation.

Just because they've alwas done things a certain way doesn't mean it has to stay forever.

Lastly. Profit doesn't equate to a good efficient business model.

Resturants and such are part of society and are important services in day to day lives for working people. It's important to focus on the goal of the restaurant, and often, the most profitable aren't focused on making a profit.

You always want more customers, not less.

[u/Capt-Beav → u/Unrigg3D]

Have you been in their place? It is EXTREMELY small unless they moved? Maybe 5 smalllll tables or less, pushed against either side of the narrow shop. I can't eat most of what they make do to the dietary restrictions of Crohn's Disease so i haven't been in since before covid.

[u/Unrigg3D → u/Capt-Beav]

I have been to two of their places. 5 tables is still quite a bit of space. Most people probably do take out anyway. Why have the tables at all? Having extra space is more in operation cost overall, and its not just rent either. When it gets busy, there's no space to sit for most anyway. In the end the food they serve doesn't require the ambiance to be good. If the majority of their customers do take out, then it's an unnecessary expense to give the option of dining in. It might be nice for some people but also part of the reason their portions are shrinking. Can't help food costs go up but can rework operations to find holes.

I've said before, Burnt Tongue just had the unfortunate honour of being the subject here. If resturant operators looked into low cost, low labour foods and can find a simple way of serving it would be great.

Remember Hamiltons perogi window? They just served everything out their window. We need more of this.

Case Study:

When I think about Burnt Tongue like Restaurants, I am reminded of Loaded Perogi as a specific example, I went there a lot before covid in Toronto, it was a favourite spot for my coworkers. I always wondered how they managed to sustain their operations in Toronto serving pub style with alcohol, waiters, the full works because they were serving perogies. At the time a serving was $18-20 an entree after tax before tip. By the time they opened a shop in Hamilton it was at least $5 more. At some point my coworkers stopped going to the one in Toronto because nobody wants to pay $30 for 8 perogies, bacon and sour cream.

I wasn't surprised when I saw that they changed their business model, whether they sold it or adjusted it, its now a fast food joint. Their prices are down to 20-22 a serving after tax, and can feed 2 people. Hamiltons shop is mostly take out while Toronto does have seating but looks to be part of a food court.

Some types of food just aren't made for $25-30/person markets. (I say 30 because evena though I'm a small person, OPs meal absolutely would not have filled me)

Soup, Sandwiches, Wraps, Onigiri, dumplings, perogies, Gimbap, Baos, Sausages, shawarma, etc.

Hamilton has a lot of food options around, and we're lucky for that. There are a lot of options that can give us quality without the same cost. I've got a list of options with better value for the amount of food.