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Restaurant dish prices reveal hidden costs

Hacker News •
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Chantelle Nicholson argues that vegetable dishes aren't inherently cheaper than meat due to labor-intensive prep. At Apricity, a £21 asparagus dish yields only £1.65 profit, with £56 in hidden costs. This includes asparagus at £15-£20/kg, labor for fermenting and chopping, and overheads like £4,000 annual extraction chimney cleaning. Nicholson notes, 'There are so many random costs that nobody sees.'

The teal restaurant’s £36 beef dish makes just 44p profit, highlighting similar struggles. Sally Abé reports rising beef costs (up 2.5%) and VAT adding £6.50 to ingredients. Hidden expenses include bin bags (£700/year council fee) and jus-making costs (£1/portion from wine and stock). Abé laments, 'Hospitality businesses are not allowed to make money.' Both chefs stress that supermarket prices mislead customers about true dish costs.

The issue reflects a broader crisis: restaurants face 10% profit margins while paying for energy, staff, and regulatory fees. Unlike Apple’s £500 iPhone profit, dining outlets are squeezed by rates hikes and supply chain shocks. Nicholson and Abé argue customers undervalue labor and infrastructure. This pricing opacity threatens the industry’s survival, as diners expect supermarket-like pricing despite vastly different operational realities.