4 ms·
This is just wrong. If the cost of food doubles, then price of eating merely increases by small amount ?? Where did you get that fact? Any studies??
by mtw 8y ago
This is just wrong. If the cost of food doubles, then price of eating merely increases by small amount ?? Where did you get that fact? Any studies??
- lallysingh 8y agoI think he's taking about the other parts of our food costs: distribution, storage, etc. Those won't be affected by tariffs, so they dampen the effects of the tariff a bit.
- megaman22 8y agoYour $25 steak dinner cost about $6 in foodstuffs. If a tariff raises the cost of that raw material to $8, it would be absurd for that entire meal to now cost $32. Much of the cost in restaurant prices is wages, and rent, and other overhead, not the actual food.
- tinus_hn 8y agoThe overhead also grows because the waste is more expensive. Also if things the employees need, like food, become more expensive, they’ll need more wages.
- danieltillett 8y agoYou are correct, but most restaurants just multiple the food cost by 4 to set the price. It is rather silly, but that is the way the industry works.
- mchannon 8y agoI don't think it's silly to come up with a pricing method that is simple and uniform to apply. However, "4" can just as easily morph to "3" or "5" if the fundamental costs change industrywide.
- danieltillett 8y agoIt is silly because food cost is only one part of the cost of providing a meal. Really all of the costs should be dumped into a program which spits out exactly what to charge for each menu item.