Should you get the guacamole on your burrito? A price analysis of your favorite foods
Matt Hawkins
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Percent markups on ingredients-only can be misleading, because the labor and overhead are more or less fixed costs. On the salad example, the restaurant marks up the expensive salad by $10.20 (130%) and the cheaper salad by $8.50 (248%). Despite the cheaper salad having a higher percent markup on the chart, the restaurant nets $1.80 more on the expensive salad, which is all profit. My take away is that if you want your favorite restaurant to do well, buy the expensive dishes — you’ll get a better ‘deal’ and they will make more profit too.

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