Breaking News: Equifax Credit Breach

Restaurant prices: One of these foods is marked up 636%

|
Restaurant prices: One of these foods is marked up 636%
Image Credit: Dreamstime
Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Advertisement

If you’ve ever been curious about how much restaurants are marking up the price of ingredients in your favorite foods, we finally have an answer!

Are you overpaying for restaurant food?

Read more: The secret reason why a McDonald’s Coke tastes the best

Plate IQ, a company that processes invoices for thousands of restaurants, used its data to determine the markup you pay for common food items.

Ready to be surprised? The study found that the markup ranges anywhere from 155% to 636%!

According to Plate IQ, a pizza loaded with meat only costs a restaurant $1.90 to make — and it sells for $14, the highest markup of the five foods analyzed.

“A big contributor to these huge markups is the incredibly low cost of making the crusts,” Plate IQ explained in its findings. “A pizzeria can buy a 50-pound case of flour for around $15. This works out to around 20 cents’ worth of flour per pizza. The yeast costs less than one cent per pizza.”

The study also looked at the markup on a hamburger, burrito, omelette and cobb salad.

Plate IQ has access to the actual costs of the raw ingredients that go into the five foods mentioned in the table above.

The massive markups are necessary for restaurants to cover operating expenses, such as labor and rent. Many restaurants only make a 3% to 5% profit.

The lesson here? You may save a few bucks by making your pizza at home!

Read more: 5 secret menu hacks you probably haven’t tried

Why you don’t want to buy these gift cards

Advertisement
Mike Timmermann About the author:
Michael Timmermann paid off his mortgage in two years. Now, he shares his money-saving tips on his blog, Save on Almost Everything.
View More Articles
  • Show Comments Hide Comments