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The cost of labor to cook those chicken wings has gone up. (about 20% or so since 2020)
by bdcravens 3y ago
The cost of labor to cook those chicken wings has gone up. (about 20% or so since 2020)
- listenallyall 3y agoBut labor is, essentially, a fixed cost. Once a cook is working a shift, it costs the restaurant nothing extra (or a very small marginal amount) in labor to cook one additional order of wings. Most restaurants' problem is not the cost of labor, but the fact that expensive labor is idle much of the time. Lowering prices to increase volume would, in many cases, be a much better strategy, especially for a local restaurant which is starting out at a disadvantage compared to chains, which can purchase much larger volumes of food at lower prices.