Trying To Dine Out On A Budget? Be Aware Of This First - Tasting Table

"Everybody loves the idea of being able to go out to eat on a budget, but sometimes the little tricks we use to shave a few dollars off the bill can have unintended consequences. The reality of dining out is that while menu prices have skyrocketed at restaurants, jumping 30% in five years per the National Restaurant Association, the same has happened to the cost of operation. The cost of food and labor is also up 35% in that same period."

"Restaurants are extremely low-margin businesses, which means very little of the price you pay - approximately 3 to 5%, according to Weinberg - is actually profit. As Weinberg puts it, that means "each seat needs to pull its weight." It may be frustrating to hear, but taking up a table and not spending enough per person can mean a restaurant you like is actually losing money when you eat there."

""Some restaurants have a stricter policy regarding splitting plates than others," Weinberg explains. "But it's worth keeping in mind that restaurants are one of the last bastions of brick-and-mortar shops." Indeed, the restaurant manager notes that dining out remains a unique experience that "requires restaurateurs to pay heavily in terms of rent in desirable areas.""

Menu prices at restaurants rose about 30% over five years while food and labor costs increased about 35% in the same period, squeezing restaurant budgets. Restaurants face high fixed costs such as rent and labor, and operate on narrow net margins of roughly 3–5% so relatively little of menu price is profit. Dining remains a brick-and-mortar business that requires significant overhead in desirable locations. Splitting entrees lowers revenue per customer and can reduce a table's contribution toward fixed costs, meaning that taking a table without spending enough per person can cause eateries to lose money.

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