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Sandwiches Sell for Nearly $16 at Some Eateries: The Real Reason Restaurants Charge So Much

Eating out these days is just down right expensive. The obvious culprit for the dramatic price increases in restaurants is inflation. However, it is not really the increased cost of food that is driving the ridiculously high menu items.

In a recent appearance on “Varney & Co.,” Will Restaurants Investment Group founder and CEO Brian Will gives us in detail the real reason his eatery charges
nearly $16 for a simple BLT sandwich.

Will provided Varney with a breakdown of his monthly expenses, shedding light on the spiraling impact of inflation, often driven by liberal policies, on the restaurant industry.

One of Will’s establishments charged $12.99 for a BLT sandwich just three years ago. Today that same eatery is charging to $15.99 just to keep his head above water.

Will disclosed that the wholesale cost for the BLT is a mere $5, but the necessity to cover escalating operational expenses, primarily due to increased minimum wage and ridiculous policies and regulations exacted by the Biden administration, has inflated the retail price.

He now spends a staggering $20,000 monthly on rent for a space in a new mixed-use development but that is just the tip of the iceberg.

“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.

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Established in 2010, Will Restaurants Investment Group manages brands such as Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca.

Will expressed that he is now navigating an economy starkly different from when he first signed the lease for the restaurant’s location.

“We signed our lease pre-COVID with fixed increases every year. And I have a personal guarantee, so my rent isn’t going down. It’s going up every year forever,” he stressed.

Will lamented the broader challenges faced by the commercial real estate sector, notably the increased interest rates coupled with the shift toward remote work since COVID have left him with a stark reality.

“My revenue per operation has dropped about $350,000 per store while my rent has gone up, labor is up 30%, insurance is up 40%, rents up 10%,” the restaurateur stressed.

“It’s incredible what my costs have gone up over the last three years.”

Will’s story is widespread in the beleaguered restaurant industry beset by the repercussions of liberal economic policies and rampant inflation that has necessitated the price hikes customers are witnessing.

The sharp increase in the cost of a simple BLT sandwich is not just a number but a symptom of a deeper economic malaise fueled by increased minimum wage mandates and regulatory burdens that drive up utility and insurance costs. It’s clear that the struggle to maintain a viable business in the face of these escalating expenses is a daunting one.

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