Mad About High Restaurant Prices? It's Not the Chef's Fault

As a chef and business owner, my job is to run a clean, safe, and efficient restaurant that provides happy and healthy employment to my employees and a delicious memorable dining experience for our guests. The pandemic changed everything, almost decimating our beloved hospitality community, and introducing a whole new set of challenges to every person working in this field. Because we are resilient and passionate about what we do, many of us soldiered through the business shutdowns, the astronomical added expense of PPE, and the loss of staff, which is still a glaring problem not only in our country, but around the world. 

During the pandemic, the impact to the supply chain was one of leading factors in price increases. A case of disposable nitrile gloves, at the time in high demand at medical facilities and pretty much everywhere went from $40 to over $200, and for the most part, these costs have eased little since the pandemic was declared over earlier this year. 

The elephant in the room is the fact that probably millions of people decided to leave the hospitality industry for a different way of life. There are myriad reasons one might suggest, but my reality is that there is a severe shortage of both kitchen and front of the house labor as a result. Having recently opened a restaurant in Japan, I know this to be true for our industry worldwide. It is a workers' market for sure, and the pay rates have increased by almost 200%. 

To be clear, I am okay with the pay increases for our staff, I honestly wish we could pay them more. As a business owner in Hawai'i, we also provide health insurance to our employees who work 20+ hours a week. I currently reside on Maui. Having access to fresh food, and my restaurant largely sourcing organically and locally is a blessing. But it is not without its own expenses.  

Recently, a customer complained about having to pay for $20 avocado toast at my ocean front restaurant in Lahaina. A subsequent Instagram post ensued, which was then trolled by someone who claimed he could make the same toast at home for a fraction of the cost (of course you can, sir). 

When we go out to eat, whether it is a fast food or quick service operation or a full service dine-in restaurant, we are paying for the entirety of being served, not just for the food. Often most customers associate the price on the menu with what’s on their plate or in front of them. Perceived value deals in the physical, logical, and emotional, and essentially ends in how much your customer is willing to pay for whatever you are selling them. 

With restaurants, there is so much more involved that many guests never get to see or truly understand what goes into making a restaurant meal happen. So let’s break this down:

Where your $20 goes

The ingredients

My organic, locally sourced avocados come at $4-6 a pound depending on the time of year and the harvest. The extra-thick slice of whole wheat toast griddled with butter, shaved organic baby vegetables, extra-virgin olive oil, fresh citrus zest, herbs, and microgreens, and Hawaiian sea salt all have a cost. The farm which sells me the avocados and much more of my produce, grows organically, which means their yield is smaller, and they pay their farm workers $20+ an hour, hence the higher priced avocados, which I gladly purchase. I choose to buy organic because I care about the health and well being of my customers and staff. 

The labor

My prep cooks, dishwashers, and line cooks all make $20+ hour, plus tips. My front of house ranges from $12-20 an hour plus tips. This is because it’s like The Hunger Games in Maui, trying to find qualified restaurant workers. The rising cost of living has not abated, especially in Hawai'i, as a result of the pandemic. 

The physical plant

What the customer may not see is the rent, the space, the lighting, the water and electricity, internet, the cost of the plates, the cutlery, the gloves, the garbage bags, the napkins and paper towels, the dish soap, the floor cleaner. These all cost money. Not to mention the bookkeeper, the repairs, the PR and marketing and advertising, the menus customers hold in their hands. All $$$$. 

The paper goods and packaging

Paper goods and packaging now cost a small fortune, especially having been shipped across an ocean, sometimes adding entire dollar amounts to the cost of goods for a single take out order. 

The fuel

Food cost is obviously a factor, and those prices increase even locally with labor increases, and gasoline prices sky high. We are paying a gas tax and/or delivery fee to most of our vendors. Twice a week I personally haul an entire carload of ingredients from farmers markets upcountry all the way to Lahaina, 60 miles round trip. 

The people

Then there is our staff, whom I cherish. They are the professionals who will prepare your food, serve you at your ocean view table, where you are essentially renting a chair and space in which to feed yourself. We will clean up after you, and do your dishes. You can enjoy this chef curated and created avocado toast with the warm ocean breeze on your face, and a view of Lahaina Harbor. The price of the avocado toast is included with this $20 experience. 

The service charge

I have added a 5% kitchen service charge to my menu. It is to incentivize my cooks and back of house  to stay positive and keep them motivated to do a good job for our customers. It is noted on the menu and most people are happy to pay it, though when someone wants it taken off the check, we easily oblige. 

The value

So for $20, plus $1 to be divided by my entire kitchen staff, and maybe the customer leaves $4 (20%) for the server, the customer can sit in the restaurant, enjoy the view, enjoy what I hope to be the best avocado toast they’ve ever had, and be served and cleaned up after, with aloha. The food cost of the toast is a little over $4, but add in the cost of everything else, and you can be sure no one is laughing all the way to the bank with $20 avocado toast. Especially if said customer camps on the table for longer than normal. 

The takeaway

And here it is: inflation is everywhere. There is no magic money tree for most small business owners, and even ones with deep pockets still have to deal with staff shortages and price increases. The only source of revenue for everything that goes into a restaurant and the experience — the food, staff, ambience, hardware, and more — comes from whatever the customer is willing to spend. That is our only source of revenue, the exchange of goods and services. Sure, we could do away with tipping, but then I’d have to pay my staff a lot more to keep them, and guess where that money comes from? 

I see a lot of misinformed opinions about restaurants and restaurant owners across social media. Usually what you see on the menu reflects a restaurant’s real time costs, and in this economic climate, most independent restaurants are just trying to keep their head above water while keeping their employees and customers happy. As a chef owner, the joy of having a restaurant is sometimes negated by customers who do not truly value the service we are trying to provide, and often just enough negative customer interaction with our front and back of the house leads to people leaving the business for good. 

So the next time you decide to dine out, be kind, be generous, tip the counter staff even if you’re not staying, because you are being served. There’s an entire team of human beings who care about the job they are doing in making sure you leave happy and satisfied. We are not perfect, we don’t always hit the mark, but we are trying our best. Know that we, too, have felt the squeeze as both consumers and providers of a product and service. Be prepared to spend money on added costs whenever you decide to dine out. Otherwise, yes, stay home and do it cheaper for yourself.

This story was originally published on June 29, 2023.