Current Louisville Dining Costs

I know that when I started in my cake biz eight years ago, eggs were generally 69 cents a doz. I saw them less than a week ago for $2.69/doz. Sugar has doubled and I haven't had the heart to look at flour. I just have to buy it.

But from a consumer's POV, we're getting priced out of the dining out market. We used to go out 4 times a week. Now it's maybe two and we really have to be careful where we choose to go and use our gift certs whenever possible. Serviche, L&N are only special occasion places now for us.

Here are the bar costs that a lot of places strive for:

Draft Beer <20%
Bottled Beer 22%
Wine 30-40%
Liquor 17-22%

It has been this way as long as I've been in the bar business. If they didn't charge this much, they'd probably be closed. As noble as it is for some restaurants to drop their wine prices to retail level, they are hoping to make up that profit in additional sales elsewhere.

If a place runs a ridiculous beer special, they are counting on the "special seekers" friends to drink liquor at full price.

If you want a deal on wine, check out:

Napa River Grill M-F Happy Hour 1/2 Price Glasses of Wine
-Get a good glass cheap, or a great glass pretty cheap (better savings)
Varanese 1/2 Price Wine Bottles on Wednesday
Bourbon's Bistro 1/2 Price Wine Bottles on Wednesday
Volare 50 Bottles of Wine 1/2 Price at the bar M-Th
Mitchell's Fish Market 1/2 Price Wine Bottles on Thursday

Where are some other great deals out there?

Last time I checked, Carly Rae's was doing half price bottles of wine on Friday nights!

Here are the bar costs that a lot of places strive for:

Draft Beer <20%
Bottled Beer 22%
Wine 30-40%
Liquor 17-22%

From personal experience the numbers you use for wine look very low, I think a more realistic number would be about 75% or so. Liquor is also much higher than the numbers you quote, it's a little more dependent on the brand and I'm sure it exceeds 50% except for occasional specials. I really don't have a good feeling for the beers since I very seldom drink beer but considering most normal beers costs less than $1.00 per bottle when bought in a store and at least $2.00 when bought at most restaurants they too look like they're much higher than your numbers

Here are the bar costs that a lot of places strive for:

Draft Beer <20%
Bottled Beer 22%
Wine 30-40%
Liquor 17-22%

I don't believe these are the 'mark up' margins but rather the cost margins. A cost margin or 20% means a markup of 500% which is pretty stand for liquor.

When I started this post originally my question was not "Are you getting what you pay for?" I think in Louisville we've always enjoyed a high standard of culinary arts for more than reasonable prices. I think we still do. I understand the "You get what you pay for" concept. My question was why are restaurant costs here now comparable with the west coast when we have always been traditionally lower?
I think maybe Shawn Vest summed up the situation in his immediate post after my question when he stated he thought the costs have finally caught up with the Louisville market.

[/quote]

From personal experience the numbers you use for wine look very low, I think a more realistic number would be about 75% or so. Liquor is also much higher than the numbers you quote, it's a little more dependent on the brand and I'm sure it exceeds 50% except for occasional specials. I really don't have a good feeling for the beers since I very seldom drink beer but considering most normal beers costs less than $1.00 per bottle when bought in a store and at least $2.00 when bought at most restaurants they too look like they're much higher than your numbers[/quote]

Mark-

I'll show you. 33.8 oz. in a liter. If the well vodka costs $5.50 per liter when purchased by the case, a 1.5 oz. serving costs the establishment 24.4 cents. If sold for only $3, the liquor cost is 8.1%

Lets say a liter of popular premium vodka costs $35, a 1.5 oz. serving costs the establishment $1.55. If sold for $6 (very reasonable) the liquor cost is 25.9%

It is fair to say that most place mark up their liquor 4-5x. Even with those mark-ups, after all bills and expenses are paid the house may only profit 4 cents on the dollar (depending on overhead, sales, etc.)

Carla-

Sorry to get away from your point, but I do agree that prices have caught up. It's rare to find a good sit down lunch w/ drink and tip for under $12, unless you go to El Nopal. <<< I highly recommend the Chicken Taquitos

Agreed Broc.
I think in the past we've been a bit spoiled about the quality and dining experience we could get here in Louisville. Perhaps the increased cost of gasoline and shipping/transporting staples is finally showing itself in higher costs on the retail end?

I have to challenge the original point. I don't think that Louisville costs have caught up; it's just that prices are up everywhere. My husband was in San Francisco last week and said that at the nicer places, main courses in the upper 40 dollar range were the norm. When I was last there a year and a half ago, I'd say it was mid-thirties. That's far higher than here. I didn't travel this time myself, but I think I can take his word for it.

I think that Louisville is still relatively cheap compared to the Northeast and the West Coast.