Restaurants should generally be expected to get more and more relatively expensive, especially “sit down” restaurants, because of Baumol’s cost disease. There’s a large labor component that isn’t getting significantly more efficient over time.
Many restaurants in our area are "removing the middle man" so to speak - with modern technology, the waiter isn't a necessary component, as ordering, paying, etc. can all be done either through a smart phone or a smart display at the table. A server is still somewhat necessary, but requiring someone who is highly sociable or remembers orders well is no longer needed.
Of course, nicer restaurants will retain waiters because it is nice to be waited on by another human being, but you need to pay for that experience!
If you think about it, this is not surprising. Ultimately you are paying for a lot more than the food.
Let's assume you can make the meal yourself at home. You'd pay for the ingredients, but probably ignore all the other costs.
A) labor is the obvious first candidate. Purchaser, chef, server, host, barman, dishwasher, table cleaner- there are lots of people involved. The price of your meal should include labor at fair rates, including benefits etc. (in the US it doesn't hence the need for tipping.)
By contrast your home-cooked meal uses your (free?) time so already has a head start.
B) location. Your living room is free. Your plates are free. Restaurants pay a lot for space (rent etc). They also pay for equipping the space, and for breakages.
C) wastage. When something goes bad in your fridge you throw it out. Restaurants take this straight off yhd bottom line.
I could go on - marketing, regulation, health standards, parking and so on. It all adds up.
Most restaurants fail because margins are tight - and if there isn't sustained volume small things will drive you under fast. And frankly the food offering at most places is inferior to home-made with only the smallest amount of kitchen skills.
So yeah, small establishments with very low overhead (think food trucks) can be both good and good value. But most places either have to skimp on quality (think most fast food) or try and externalise the cost (via tipping etc)
Put another way. Teach your children to cook. It's not hard. And it's a LOT cheaper than eating out.
>So yeah, small establishments with very low overhead (think food trucks) can be both good and good value. But most places either have to skimp on quality (think most fast food) or try and externalise the cost (via tipping etc)
Option C: charge sustainable prices and honestly post them, like nearly every other business. Why is this so hard for restaurants especially? Imagine going for a haircut and having to choose between 1) a minimum viable haircut administered by a minimum wage unskilled teen, or 2) navigating a byzantine pricing structure where (among other gotchas) you're supposed to pay more than the posted price by an undocumented amount determined by cultural osmosis.
Wait that's literally what happens with haircuts too. The price board, if you're lucky to go to a place with one, states something like "$20 up", whatever that means, and you're supposed to tip on top of that.
Canada sure feels like that when I visit. I always forget the double 15% for taxes and tip. Them comes the expensive beer. In the end I pay more to eat even accounting for the exchange rate.