Why Burgers Are Seen As A Money Pit In Restaurants
If you're dining at a restaurant in the U.S., odds are there's some type of burger on the menu. Even at upscale and high-end dining establishments, there will usually be a burger available that's cheaper than the other dishes for which the restaurant might be known.
“There's a split personality when it comes to the food menu and the drink.”
Burgers are relatively cheap to make compared to more intricate dishes, which is why fancy restaurants can't get away with charging the same for a burger as they would for an elevated steak or seafood pasta dish. As chef Kris Komori shared with The New York Times in 2024, "From a business perspective [burgers don't] make money. It does help push our cocktail program and our beverage program." This also explains why restaurant cocktails are so expensive — restaurateurs are trying to make their money back wherever they can. Chef Eli Sussman of the NYC restaurant Gertrude's shared with the outlet, "There's a split personality when it comes to the food menu and the drink." The chef pointed out that people are more willing to pay for expensive drinks than they are for food, hence why a burger and a margarita may be the same price on a menu.
When customers order a burger, they're usually costing the restaurant money
It's not uncommon for customers to pay a cool $20 every time they're craving a burger (especially if they're in NYC), but to restaurants, that's a small price to pay. Forbes reported in 2017 that 30% of a restaurant's revenue is allocated to labor costs, and another 60% is allocated to overhead costs and ingredients. When nearly 90% of all the money a restaurant makes is being poured back into the establishment to help it run, every dollar counts — and most chefs agree that burgers alone don't make a profit.
Not only is ordering a cheeseburger at a fancy restaurant controversial from an etiquette standpoint, but it also stresses out chefs and restaurant owners who are already struggling to make ends meet. Chef Geoff Davis told The New York Times that there's a certain amount of money restaurants need to make per head in order to turn a profit, and burgers — even $20 ones — aren't even close to making that profit. The chef did also mention that burgers draw in a crowd because they're both well-known and well-liked, but if even a third of diners spring for this option, restaurants are "losing a huge amount of money." When customers are eating out at a restaurant, they aren't just paying for the food, but also for the food's preparation and the restaurant's overall ambiance, all of which cost the restaurant money.