5 ms·

I wonder if we'll see actual price reductions on the consumer end. Somehow I don't see franchises like Red Lobster bothering to pass their savings on to the cus

I wonder if we'll see actual price reductions on the consumer end. Somehow I don't see franchises like Red Lobster bothering to pass their savings on to the customer.

jfengel 7y ago
For restaurants that sell the lobster at "market price", you might see it change by a dollar or two. But in general, note that the price of a meal is driven much more by demand than by the cost of ingredients, which are only about a third of the actual price of a meal.
- notyourday 7y ago
  "MP" for lobsters means "we are gonna soak you". Places that aren't going to soak you will put a price and that price won't be insane. Like places in Maine that say "Surf and Turf - $19" "Add a lobster - $9" "Twins - $14"
- nappy-doo 7y ago
  Most stores near me sell chicken lobsters (1-2lbs). Most recent years, the lobster catches have been really good, and prices are generally 4.99$-5.99$/lb. Getting them steamed adds very little to the prices. Those same chicken lobsters will cost you 20+ at a restaurant, and would be 15-20 for a lobster roll. Restaurant prices haven't moved (up or down) in more than decade.
jdminhbg 7y ago
Restaurants routinely run specials and sales when commodity prices fall. Red Lobster competes with a bunch of other chains, why wouldn't they advertise "2 for 1 lobster!" to drag people away from Carraba's or TGI Friday's?
- cpr 7y ago
  My chef son-in-law, who's worked at some great restaurants in the Pittsburgh area, says that they almost never pass on cheaper ingredient costs to the consumer.
  - intuitionist 7y ago
    “Great restaurants” with chefs presumably have a less price-sensitive clientele than fast casual chains, who have a less price-sensitive clientele than fast food.
  - deleted 7y ago
    [deleted]
  - deleted 7y ago
    [deleted]
dghughes 7y ago
In 2019 the lobster fishermen in my area of Canada sold lobsters to buyers for about $6 each. That was for "markets" the size that are sold to restaurants. The lobster fisher has boat payments, fuel ($1,000 to fill the tank per trip), wages for helpers, insurance, zone license. Now more rules to prevent right whales from getting caught in ropes. Which means new rope or new ways of handling the traps and equipment. And there is a quota so you can only catch so many. Meanwhile that $6 lobster goes for maybe $50 or $100 in a restaurant in a large city.
kirykl 7y ago
Retail prices might drop for frozen lobsters, as more restaurants can afford to start offering it. There is a switching cost though for fresh (tanks)
rellui 7y ago
I'm seeing it where I am at least. It used to 10-12 dollars per lb now it's down to 6 dollars a lb. A month ago I got some at 8 dollars a lb and I already thought it was a steal.
aianus 7y ago
McDonald’s releases a limited time McLobster in Canada if and only if the price gets low enough.

I wonder if we'll see actual price reductions on the consumer end. Somehow I don't see franchises like Red Lobster bothering to pass their savings on to the customer.

jfengel 7y ago

For restaurants that sell the lobster at "market price", you might see it change by a dollar or two. But in general, note that the price of a meal is driven much more by demand than by the cost of ingredients, which are only about a third of the actual price of a meal.

notyourday 7y ago
"MP" for lobsters means "we are gonna soak you". Places that aren't going to soak you will put a price and that price won't be insane. Like places in Maine that say "Surf and Turf - $19" "Add a lobster - $9" "Twins - $14"
nappy-doo 7y ago
Most stores near me sell chicken lobsters (1-2lbs). Most recent years, the lobster catches have been really good, and prices are generally 4.99$-5.99$/lb. Getting them steamed adds very little to the prices. Those same chicken lobsters will cost you 20+ at a restaurant, and would be 15-20 for a lobster roll. Restaurant prices haven't moved (up or down) in more than decade.

jdminhbg 7y ago

Restaurants routinely run specials and sales when commodity prices fall. Red Lobster competes with a bunch of other chains, why wouldn't they advertise "2 for 1 lobster!" to drag people away from Carraba's or TGI Friday's?

cpr 7y ago
My chef son-in-law, who's worked at some great restaurants in the Pittsburgh area, says that they almost never pass on cheaper ingredient costs to the consumer.
- intuitionist 7y ago
  “Great restaurants” with chefs presumably have a less price-sensitive clientele than fast casual chains, who have a less price-sensitive clientele than fast food.
- deleted 7y ago
  [deleted]
- deleted 7y ago
  [deleted]

dghughes 7y ago

In 2019 the lobster fishermen in my area of Canada sold lobsters to buyers for about $6 each. That was for "markets" the size that are sold to restaurants. The lobster fisher has boat payments, fuel ($1,000 to fill the tank per trip), wages for helpers, insurance, zone license. Now more rules to prevent right whales from getting caught in ropes. Which means new rope or new ways of handling the traps and equipment. And there is a quota so you can only catch so many. Meanwhile that $6 lobster goes for maybe $50 or $100 in a restaurant in a large city.

kirykl 7y ago

Retail prices might drop for frozen lobsters, as more restaurants can afford to start offering it. There is a switching cost though for fresh (tanks)

rellui 7y ago

I'm seeing it where I am at least. It used to 10-12 dollars per lb now it's down to 6 dollars a lb. A month ago I got some at 8 dollars a lb and I already thought it was a steal.

aianus 7y ago

McDonald’s releases a limited time McLobster in Canada if and only if the price gets low enough.