Would you complain less about cost of food in restaurants/ Cafes if you knew what it cost them to make?

Question

A lot of people believe that ingredients cost less when buying wholesale as a business. Which isn't strictly true. For example the bread we buy for my work is almost $2 more a loaf than the local supermarkets.

Anonymous · Accepted Answer

This makes me furious.

I have money, and I don't mind paying what something costs, but they should just put a price on it, and that's it.

I'm tired of all these "mandatory 22% tip" and "mandatory 18% service charge" and "mandatory 4% worker health insurance fee" and "mandatory 7% city improvement fee" and on and on.

And then they try to be cute about it. "For your dining convenience, we have added our mandatory 27% gratuity to your check."

Tips, Franck, are 10%, and then they became 15%, and now they are above 20%, sometimes 30%. And sometimes just for coffee. Dutch Bros. wants 30% tips for the person who hands you the cup of coffee at a drive-through. There isn't even a 10% or 15% or 22% option on the iPad when you pay. When you calculate a tip based on a percentage, obviously the amount of the tip goes up when prices go up, so there's no reason to also increase the percentage.

I will pay what the restaurant charges for the food and I will tip what I want to tip, which is often more than 22% because I appreciate good service, but I will not be TOLD what to tip or shamed into tipping or that I MUST tip or pay other ridiculous fees that are part of the cost of doing business for the restaurant. Pay your fucking employees. They are not my responsibility, and I won't go to these places.

I don't mind if something is expensive, but when they charge $29 for an egg or a piece of toast, then I'm out of there, because it shows they are dishonest and gouging people. If an egg is $2 in an ordinary restaurant then I can understand if it's $4 or $6 in an upscale restaurant, but not $29 (Jean-Georges).

Fuck the fuck off.

Jesus.

performerwannabe · Accepted Answer

Where I live I would probably be more pissed because ingredients are expensive even if they buy them at the same price as me but they sell it multiple times the cost. I used to buy a sandwich with meat for 2€ in high school. 10 years later and they now cost nearly 6€.

loveslongnails · Accepted Answer

I don't complain about costs EVER so long as I'm getting quality. That said, there's a big difference between NZ and the US when it comes to quality ingredients. I was in your land for months in 2024-25, loved it by the way. I knew that when I bought a hamburger, I was getting local beef from grass fed cows from land that is not poisoned by herbicides. (I also know that even though it's not illegal to grain fed cows in NZ, there are very strict regulations about what grain can be used and the ingredients in them).

I knew I was getting locally baked bread, and fresh veggies like lettuce and tomato from the area. One place was so conscious about it that if any foods were imported, they specified it on the menu, while some places were "strictly local and NZ sourced". I'm willing to pay for that.

The problem in the USA, especially now, is that hardly anything in large restaurants is sourced locally. Bread made from USA flour is laden with glyphosate and other chemicals, cheese isn't really cheese, much of the fish is farmed (not the good way, but the cheap way), and even pizza ingredients are canned and they charge a fortune for it.

Fast food is now expensive AND bad for you -- before it was just bad for you. LOL And because in regular restaurants, prices have gone up 20-30%, and tipping is 15-25%, the cost of eating out is prohibitive for most families, even for crap food.

NathanDavis · Accepted Answer

prices and costs of produce and food can vary DRAMATICALLY from one country to another... and the USA is quite particular about that

the cost of food is rarely based on the cost of the ingredients, other than that...

as someone who's used to cook (and grill, and more) and eat mostly homemade meals... the only reasons why I go to a restaurant or similar, is convenience... just so I don't have to do it myself if I don't like it

and the second reason is because they will do it better than I could ever do it, and also of course they can make me something I would have not idea how to make it myself, lol

so, my only complain would be if/when one place in particular would overprice their dining compared to others who can offer similar or better, but even then... I won't complain, I just don't go to that place... and if I decide to go there, I'll pay whatever it takes, lol

James The Foodie · Accepted Answer

Knowing real costs usually changes how I see prices. When I worked briefly with a small café in Kyoto, I saw how rent, staff, wastage, utilities, tax, equipment, and time dwarfed the raw ingredient costs 🍜

If I know they use quality ingredients, pay staff fairly, and cook with care, I’m much less likely to complain about the price, especially in small independent places.

DryGermanGuy · Answer

Your bread example is correct for buying at scale: The supermarket bread is baked by an industrial bakery, baking for hundreds of stores. Your local bakery is much smaller and hopefully uses better ingredients as well.

Telekinetic-Potato · Answer

Most restaurants buy bread from bakeries who deliver multiple times a week. If they're paying more for the same bread at the supermarket then they're paying for convenience. The distributer know what they can get away with. I used to get sent on runs to resupply so I got to see the prices first hand.

A lot of places will send delivery drivers to the supermarket to buy certain things. I used to get sent to shop rite to buy soda whenever it went on sale 😂.

Back then you could buy cans of soda for 24 cents on average unless it was brisk iced tea which was I think 33 cents and coke cola which I think now goes for 36 cents or something like that.

molonski2 · Answer

I'm well aware of the cost base , having had retail stores of my own and you are correct people always assume the margin is humungous , staff , utilities , taxes , rent , these core costs basically never go down.

But , I'm not sure that it would make any difference declaring the actual cost , people just trend towards the cheapest , sometimes loss leaders , but if you have turnover it works , I just don't think people would complain less

Your point however is certainly a valid one.

Massageman · Answer

I was on a team that analyzed the business model of Benihana of Tokyo and got a fairly good hold on the pricing structure of restaurants. Back then it was one-third for food costs, one-third for employee pay, and one-third "for the house" (rent, hard goods, insurance, utilities, profit). (In general, this did not include beverages which increased the profit margin significantly).

Lately, the paradigm has shifted with supply issues, but your work should hunt down a better source of their bread. ;- )

indissoluble · Answer

It doesn't matter what your costs are, people will pay what the market will bear. If you can't meet that price point that people can afford then you didn't do your research before going into business and you will fail. About 60% of restaurants fail within first year, and around 80% fail within five years. If you want to survive you have to change your methodology and start with your customer first.

Maybe_Maybe_not · Answer

My wallet is not complaining about restaurants, it's fine. And cafés well, that coffee I'm sipping is just 1€50, plus the view " en terrasse " is pleasant. Especially that fortified castle, I've seen it a thousand times yet I still like it.

Account · Answer

I do not complain about such things regardless, if I go to eat food at a restaurant or I order from a cafe, I already know what I signed up for.
So I wouldn't complain for the cost of it.
Only reason I would complain is if I found a cockroach or something.

AviatorTom · Answer

I have a question... Why don't you by the bread at the local supermarket?

That would reduce cost and support local businesses.

Interesting story. We were at trivia night at a local restaurant. Their special was chili dogs. Everyone ordered it and they ran out of hot dogs. So, they sent the hostess down the street to the nearest grocery store to buy hot dogs.

Likes2drive · Answer

Hopefully you’re getting better bread than the supermarket and from the bakery so it will cost more, that’s why people go to restaurants for better tasting food and know it’s going to cost more for that and service but many people can’t afford to eat out much anymore unfortunately

lilBigPotato · Answer

There's a general rule of thumb for restaurants to calculate prices. It's ingredient costs x3-4. So you can easily estimate their costs based on their prices and you can also easily get a good idea if they charge you a premium.

Tarifa · Answer

Not only that. You need to add the cost of the restaurant itself (rented or owned), electricity and staff's wages. It all adds up.

ChicoFromThe305 · Answer

People would probably complain more, cause it costs far less to make a lot of the times, now if their profit margin is very thin then that's another thing

CupcakeTheDestroyer · Answer

No, people and myself would still complain about how capitalism and enshittification is making stuff more expensive and worse

exitseven · Answer

I never complain about the price of food. I ran a small business and know there are a lot of inputs in business.

Abbycado · Answer

I don’t complain. Mostly because I eat on campus, but I get your point.

Iron_Man · Answer

I’m still gonna complain. I can’t believe Taco Bell charges $14 now for one of their boxes its ridiculous when It used to be five dollar boxes not long ago

AngryCarl3 · Answer

Well it's true that major supermarket chains can demand huge discounts from suppliers. Maybe you should start buying supermarket bread?

najekim · Answer

I can understand if the costs for the ingredients go up. What I can't abide to is the hacking up of prices because of the name of the place or chef.

msc545 · Answer

I don't know, but I do know that if you don't want to be in the restaurant business because it isn't profitable or because it's too much work or whatever, then you shouldn't be.

LC75LC71 · Answer

Oh absolutely. It's the same excuse of due to cost cuts.. Nice job of them passing the cost up to the consumer.

Mike_Hum · Answer

No. Because the vast majority of restaurants do various methods of heating up prepared food sent to them by foodservice wholesalers.

Anonymous · Answer

Is your bread higher quality than the bread sold in local supermarkets?

whosnumber_1 · Answer

I don't complain. I'm pretty choosey about where I eat out anyway

Still-alive · Answer

Probably not lol. Maybe if peoples wages were much better they might overlook it

Anonymous · Answer

I don't complain cause it's a restaurant, that's how they make money. I will only complain if they are charging more and the food is not that good. by the way how old is your profile pic?

Bklynbadboy12 · Answer

I won't complain cause I love the experience

Anonymous · Answer

I usually don't complain.

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