Two chefs have shed light on the high costs of running a restaurant, with some dishes costing more than 20 times the price of the ingredients. According to Chantelle Nicholson, chef-patron of Apricity in London, the ingredients for a simple vegetable dish may only cost £2.18, but the labour, energy, and other costs come to £56, which is then divided across the entire menu.
Nicholson explained that asparagus, which can be expensive due to high labour costs, is a prime example of a dish that may seem cheap but is actually very costly to produce. Similarly, a beef sirloin dish at Teal in London costs £36, but the profit is only 44p.
The breakdown of costs for Apricity's vegetable dish shows that ingredients and VAT account for £6.85, while staff costs, rent, rates, and utilities come to £10.97. Running costs, including accountancy, PR, and waste collections, add another £2.53.
Nicholson highlighted the issue of rising costs, stating that when bills go up in people's homes, restaurant bills go up exponentially higher. She also noted that many random costs, such as extraction chimney cleaning and fire alarm maintenance, are not seen by customers but add to the overall expense.
Sally Abé, chef and restaurateur at Teal, added that beef prices have risen by 2.5% due to increasing feed and labour costs, and that she has to pay VAT on top of that. She also highlighted the issue of bin bags, which can cost a significant amount, especially when preparing dishes like the beef sirloin.