Quote:
Originally Posted by Locke
Dude...for now. That was only a week. Do you honestly think they were going to suck up that cost increase in perpetuity? What happens when minimum wage gets hiked to $15, are they going to suck that up too?
Its always going to get passed to the consumer one way or another.
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Sure, but that's not how food cost price increases work. They'd first try and eliminate costs elsewhere, like taking other high cost supply items off the menu. If a price increase was the route they ended up going, it'd be tiny increases across the board, not just crank up that particular item, because like you said a $50 steak at earls would be stupid, nobody would get it.
Their profit margin on steak was already super low, something like $1.80 profit for each plate. This difference could be made up by introducing a few new wines at the usual ridiculous markup