Talk of The Villages Florida - View Single Post - Prices are to high
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Old 12-12-2008, 09:08 AM
mmatcg mmatcg is offline
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Default Restaurant food cost

It's not that strange, the food cost doesn't only response to the cost of the transportation.

The average food cost for a restaurant is at 35%, People assume that 50% decrease in gasoline cost would bring down the average food cost significantly.

the fact is that the food cost for a typical restaurant would come down 4 % at most, items like rice, cooking oil, egg and few others have gone up 50% at least comparing to beginning of 2008.

the cost of manufactured items like food containers have gone up pretty much when the gas was at $4.00 + per gallon.

Restaurant menu price has to be adjusted responding to inflation, labor cost, rent increase and etc. I have seen many restaurants haven't changed or unable to change their menu prices (mainly competition) for at least 3 years. so once the menu prices have been raised for a restaurant, the prices don't come down because restaurateurs don't think they could raise menu price once every year without losing business.

just my 2 cents.