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In most restaurants, the food itself is a loss leader. The real money is in booze and drinks. Why most diners back east have a bar. All the money is made in
by ExMachina73 3y ago
In most restaurants, the food itself is a loss leader. The real money is in booze and drinks. Why most diners back east have a bar. All the money is made in the bar drinks.
- ska 3y ago> In most restaurants, the food itself is a loss leader. Food cost isn't typically a loss leader, but (American sense) entrees are often aimed to be around neutral because people judge mainly on that when they peruse menus. But that's neutral including loss. Desserts margins are similar to booze, often. Appetizers make them money, as do sides and upsells.
- askvictor 3y agoI think that really depends on the place and the time. This used to be the case in Australia, but less so now. Particularly for pubs/bars - they'd have very cheap meals to get you in and get you drinking, but now the meals as are expensive as restaurants. Times have changed and more people are there for the food and not for the drinks, so the business models change.