We all have our restaurant pricing stories. The $15 side salad is my biggest head-scratcher. (Weren’t they $5 or $6 just a few years ago?) For some, it’s the $14 fast food burger that rankles (we’re looking at you, Shake Shack). For others, it’s the $38 Bolognese at a basic South Minneapolis bistro. That’s $50 with tax and tip, mind you.
None of this is to imply said pricing is unjustified, but the value quotient of dining out has gone pear-shaped for many customers.
“You’re not paying for food,” explains Tim Niver, owner of Mucci’s in St. Paul and the late, lamented Saint Dinette and Strip Club. “Every other cost has gone up. The margin on that salad is great, so it pays for my 25% insurance increase [or] the last $1 minimum wage increase.” Niver has expanded into consulting to help make ends meet and hosts the Niver Niver Land podcast.
Restaurateurs also say they are being inundated with new costs. “You always had food, payroll, rent, utilities, linen, cleaning service … then came Toast (payment software), Grubhub, loyalty (rewards program)—they all want 1%, and you feel you have to keep up. You have to pay to be prominent on Door Dash. You keep adding payees.”…