Walk into any restaurant and you’ll find menu items that cost 10 times more than their actual ingredient cost. While we need to understand that they need to cover labor and profit margins, some foods are marked up dramatically. Understanding which menu items have the highest prices will help you make smart dining choices. Here are the 10 foods that are always overpriced at restaurants.
10. Chicken Wings
Chicken wings have become one of the most overpriced menu items in restaurants. Imagine a plate of 8-10 wings is selling for $14-18. That’s about $3-$4 worth of chicken and sauce for minimal preparation. They used to be inexpensive, but due to their popularity in the past few years, their price has gone up, along with other parts of chicken.
9. Add-Ons
Perhaps one of the overpriced items every restaurant carries isn’t their main dish. They’re the small add-ons that seem harmless but carry a crazy markup. A side of bacon for $3-5 represents two strips that cost the restaurant $0.25-0.40. Meanwhile, extra cheese is around $3. Restaurants love add-ons because they’re pure profit generators that customers don’t scrutinize. People rarely question paying “just $2 more” for extras.
8. Smoothies and Fresh Juices
Ever heard of Erewon smoothies? Fresh juices and smoothies represent massive markups. A fresh juice sells for $8-10. Smoothies have slightly higher ingredient costs due to additions like yogurt or protein powder, but still maintain enormous profit margins. The markup is justified by the perception of health benefits and the labor involved in fresh preparation. Still, you’d better look into the possibility of making your own at home.
7. Blooming Onion
The blooming onion is both dramatic in look and in price. They sell for $8 to $12, with a large onion together with breading and seasoning. The enormous markup is justified by the impressive visual presentation and the perception that creating the “blooming” effect requires special skill. But in reality, when in reality it’s a simple cutting technique followed by standard breading and frying.
6. Bowl of Rice
Have you seriously reconsidered that extra bowl of rice? Imagine spending $50 for a meal as you’re being charged for an extra (harmless) bowl of rice. Why not buy a rice cooker instead if you really love rice? Create a homemade bowl of stir-fry and throw in some toppings. There you have it, an even better rice bowl meal.
5. Canned Soda
For some reason, an order of canned soda from a restaurant is priced so high, it will make our heads spin. Well, the industry itself represents one of the highest markups. Also, if you notice, restaurants often bundle drinks (not canned varieties) with meals or offer “combo” pricing because they know the drink sales subsidize lower margins on food items.
4. Desserts
Have you ever flipped the dessert menu given by staff, only to give it back again because of its prices? Imagine a slice of cheesecake or chocolate cake selling for $9-12 represents $1.50-2.50 worth of ingredients. Most restaurants purchase desserts from commercial suppliers rather than making them in-house, reducing labor costs while maintaining high menu prices, which is crazy enough. How would you like to spend dessert elsewhere, or better yet, bake at home?
3. Chips and Salsa
When restaurants charge for chips and salsa instead of offering them as complimentary, the markup is crazy. You’re looking at $8 worth of a small basket. The labor involved is minimal since salsa can be made hours ahead, and chips are either purchased pre-made or quickly fried from tortillas. Some restaurants charge even more for “premium” salsas like salsa verde or chipotle varieties.
2. Tea
Hot tea might have the highest markup of any beverage served in restaurants. A pot of tea selling for $4-6 represents about $0.05-0.15 worth of actual tea leaves or a tea bag, plus hot water and minimal labor. The price alone makes tea profitable for restaurants. Even premium loose-leaf teas or specialty blends don’t significantly increase ingredient costs, but allow establishments to charge even higher prices.
1. Pasta
Pasta is one of the highest-markup items on any restaurant menu, with ingredient costs often representing less than 10% of the menu price. A $22 plate of spaghetti carbonara might contain $2-3 worth of ingredients. The markup is so high that many restaurants use pasta as a loss leader strategy: they can afford to offer “specials” or discounts on pasta because the profit margins are still substantial even at reduced prices.