Restaurant owner breaks down how inflation causes him to charge nearly $16 for BLT: ‘It’s incredible’

NY Post ^ | January 6, 2024 | Alicia Warren

[Twotone]

Inflation, a driving force behind many of the challenges businesses face today, has caused one restaurant owner to charge nearly $16 for a BLT sandwich due to rising costs.

Will Restaurants Investment Group founder and CEO Brian Will broke down his monthly expenses during an appearance on “Varney & Co.” after a friend confronted him about the price of his $16 BLT sandwich.

The wholesale cost for the popular sandwich is only $5 according to Will, but the need to cover operational expenses is what caused the meal that was once $12.99 three years ago, to become $15.99 today.

Will detailed his monthly expenses, sharing insight on the business side of running a restaurant and justifying the rising price of meals.

Will spends $20,000 a month on renting a space that houses one of his restaurants in a “new mixed-use development,” arguing it “costs a lot” given the location.

“My utilities [are] $6,000 a month. My labor in December [was] $60,000, which means I’ve got $86,000 of base cost the day I open the doors on January 1,” Will explained.

“You figure in a 32% food cost. I have $11 of gross profit in that sandwich. You take all my costs divided by $11 of gross profit, and I [have] to sell 93,000 sandwiches just to get to zero before I can make any money,” he continued.

[frogjerk]

Inflation isn't just a NY or large city thing. It's happening everywhere. So getting out of NY will lower his expenses but the if he sets up shop somewhere else he won't get the foot traffic he gets in NY.

Inflation is the cruelest of taxes.

[ShadowAce]

Northern Calif. Safeway. Ham is $87/lb.

Sorry--don't believe you.

There is no place in America where ham is 87$/lb

[Lurker]

There too.

L

[Opinionated Blowhard]

For the first time in a long time, I bought a hamburger in a downtown restaurant. It was $20.00. No fries, no drink. The hamburger with some avocado was $20.00. I think I ate my last downtown hamburger.

[chaosagent]

So, we're talking about a meal, not a "sandwich." Does the writer understand that there is a difference?

Bad choice of terms by the writer. According to their menu, it's just the sandwich. Does not include fries or anything else.

[joe fonebone]

I find it amazing how many people cannot perform basic mathematics.

[Cowgirl of Justice]

I would have walked away without it. 🥖

[Carriage Hill]

“Ham is $87/lb”

In York, PA, it’s only $8.99/lb. Did you miss a decimal point?

[DIRTYSECRET]

Yes I did-sorry. It’s 87 cents a pound. Ends tonite at closing time.

[tnlibertarian]

His math is off, but the point is made. He would have to sell 7818 sandwiches to break even.

It appears he annualized the number of sandwiches, even though he used monthly expenses. Very confusing. 7,818 times 12 is 93,816.

[Carriage Hill]

87¢/lb sounds too cheap; perhaps $8.79/lb?

[Larry Lucido]

Got it. Sounds like an expensive sandwich then, but may be standard in that location. Better be a damn good sandwich.

There is a local deli here, Bread Basket, that has a huge pastrami on rye that has been around $15.00 for several years and is likely more now. You can easily get two meals out of it, but it’s something I can only afford on occasion.

[KarlInOhio]

He jumped from per month to per year without telling anyone.

[citizen]

“You figure in a 32% food cost. I have $11 of gross profit in that sandwich. You take all my costs divided by $11 of gross profit, and I [have] to sell 93,000 sandwiches just to get to zero before I can make any money,” he continued.

---

duh....so the only product he sells is the BLT sandwich?

I know he was making an illustration but he needs to have a realistic dialogue and discuss the costs of & revenue from all his products.

[ConjunctionJunction]

And they will blame it on businesses being “greedy”.

[ProtectOurFreedom]

Bacon, three eggs, toast, fruit cup, milk, coffee and tax — $23 this morning. This is on the San Fran Peninsula. It’s about 2/3 of that in North Idaho.

I remember not long ago paying $6 for that.

[sarge83]

My wife and I went to Sonic Drive in a couple of weeks ago. We were busy and wanted a quick bite to eat. I ordered a regular BLT combo and she ordered a cheeseburger combo. We didn’t upsize it and it was over $21. For $2 more we could have ordered two really nice, big burgers and fries from a local mom and pop grill. Our eating out has been reduced significantly in the last year.

[ProtectOurFreedom]

“Our eating out has been reduced significantly in the last year.”

No kidding. I took my son out for a treat when I got back to California Sunday night. Went to a nice local restaurant. One appetizer, two Beef Tenderloins, two beers, tip — $215. Holy crap. Going out used to be affordable and something we could do without much trouble, but now, it’s unbelievable.

Even when I was a poor college student, I could go out for Sunday breakfast and afford it. Around 1970, a big breakfast was under $3.

[1Old Pro]

Going out used to be affordable and something we could do without much trouble, but now, it’s unbelievable.

Agree

[BobL]

“I bought a baguette at a farmers market and they added 15% more as an employee wellness fee.”

That was your tip. They’re just making it easier for you.