B
Business Explains The WorldWhy chefs hate burgers
TL;DR
Chefs hate burgers because customers order them instead of higher-margin dishes, dragging down the average check despite a 300% markup.
Key Points
- 1.Burgers cannibalize higher-margin menu items. Research shows 45% of customers at fancy restaurants order burgers, and in many venues this single item accounts for 25% of food sales — meaning customers skip steaks, plummeting the average check.
- 2.Some restaurants cap burger sales to protect their core menu. Lords restaurant sells only 12 burgers per night as an off-menu item, using it as a loss leader so signature dishes like baked cod and roasted duck remain the main event.
- 3.The economics of burgers are brutal for restaurants. Young Jim's top-rated smash burger costs ~$3 but earns only a nickel of profit, while a standard $20 burger must cover rent, insurance, payroll, and utilities at a 300% markup just to break even.
Life's too short for long videos.
Summarize any YouTube video in seconds.
Quit Yapping — Try it Free →