Sweet Taste of Success?

by Mark R. Vogel

The Sweet Taste of Success?

Last night I ate at one of those all-you-can-eat Chinese buffets. I love those places. They usually come and go quicker than the seasons. My friends will tell you that it's my fault. Could be true.

There's no way in the world they made a profit charging me $9 for two large plates of crab legs, the accompanying butter, six chicken wings, (with hot sauce), six spare ribs, (with duck sauce and mustard), four clams on the half shell, (with cocktail sauce and lemon wedges), one bowl of wonton soup, one skewer of chicken teriyaki, and one bowl of ice cream. Throw in the free tea and water and I'm almost guilty of robbery.

Ever dine with someone who said: "$20 for a steak? I could buy it at Shoprite for $8. Throw in the vegetables and salad and this cost them $10 at most. They must be making a killing."

They reinforce their "restaurants make a bundle" argument by pointing out that servers only get paid a little over two dollars an hour. (Their below minimum wage rate is legal because it is supplemented by tips).

What our unsavvy dinner guest is failing to consider is the unbelievable number of unseen costs in the restaurant business.

Restaurants have enormous initial expenditures. A building and liquor license alone can cost a million a more. Renting a building is not much better of an option. It's a huge monthly overhead with no equity.

And unless it's brand new there may be some renovations needed. And if you forgo the multiple hundred thousand excised to procure a liquor license, you are concomitantly eliminating a major source of revenue. But the building and the legal right to sell alcohol is only the beginning.

Professional restaurant equipment is very expensive. Stoves, grills, deep fryers, dishwashers, freezers, refrigerators, all cost in the thousands.

A restaurant size ice cream machine is five to ten thousand alone. And can you imagine the amount of electricity, gas and water it takes to run all this stuff?

Then there are the countless other items like small appliances, gadgets and tools. And how about the dining room furnishings: tables, chairs, plates, silverware, glasses, tablecloths, decorations, menus, etc.

Food costs are huge. For every $20 dollar steak being served, there's something being thrown out because it was cooked improperly, has gone bad, was spilled, didn't sell, or being given away to some disgruntled customer.