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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,
by spike021 8y ago
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).
- HenryBemis 8y ago> 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.
- FroshKiller 8y agoIt'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.