Food costing too much money is certainly a conversation happening across the world right now, but one restaurant owner has defended his company's increased prices.
The cost-of-living crisis has meant people everywhere are counting their cents and pennies.
Going out for a bite to eat isn’t quite as affordable as it used to be for many people, let alone for those living in the US.
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This has resulted in a lot of frustrated customers who have vowed to simply stop visiting franchises and restaurants until prices fall.
However, CEO Brian Will, who manages the Will Restaurants investment Group, spoke on Fox Business last week to defend the cost of his restaurant's popular BLT - bacon, lettuce, tomato - sandwich.
A good sandwich can be hard to come by but would you pay $15.99 for it?
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Speaking on Varney & Co. on January 6, Will attempted to justify his company's reasoning for charging the hefty price.
“A friend of mine sent me a text the other day asking why my sandwich’s cost so much. I said 'hey let me give you some perspective'," Will said.
“This building you are sitting in, the rent is $20,000 a month. My utilities are $6,000 a month. My labor in December was $60,000 which means I have $86,000 of base cost the day I open the doors on January 1.
“You figure in a 32 percent food cost, I have $11 of gross profit in that sandwich. You take all my costs divide it by $11 of gross profit and I have got to sell 93,000 sandwiches just to get to zero before I can make any money.”
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The video was also posted to Fox Business’ YouTube page where social media users shared their thoughts on the CEO's explanation.
Some warned that things would only increase in cost going forward. While other users suggested Will was being slightly misleading in his statements as his restaurants are not relying solely on the profits of one sandwich to cover the costs of the business.
The premier restaurant management company owns and operates brands like Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca.
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Will revealed that before the pandemic the cost for the same sandwich was $12.99.
He also explained that his rent is going up yearly while he deals with the issue of a different economic landscape post Covid.
“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%,” he added.
“It’s incredible what my costs have gone up over the last three years.”
Topics: US News, Food and Drink, Money