News flash: inflation makes things more expensive. This caused a restaurant owner to charge almost $16 for a BLT sandwich.
Brian Will, who runs Will Restaurants Investment Group, talked about his expenses on "Varney & Co." He did this after someone questioned him about the high price of his $16 BLT sandwich.
The BLT sandwich costs $5 to make. But Will needs to pay for other things to run his restaurant. That's why the sandwich price went from $12.99 to $15.99 over three years.
Will explained how much it costs to run his restaurant. He said this is why meal prices are going up.
Stew Leonard Jr., from Stew Leonard's, talked about why food prices are high even though inflation is less now. He spoke on 'The Claman Countdown.'
Will pays $20,000 a month to rent a space for his restaurant. He says it's expensive because of its location.
His monthly costs are high. He pays $6,000 for utilities and $60,000 for staff. So, before he sells anything, he already owes $86,000.
The restaurant owner said that he makes $11 profit per sandwich. But he has to sell 93,000 sandwiches just to break even.
Will Restaurants Investment Group started in 2010. It runs several restaurant brands.
Will mentioned that the economy is different now than when he first rented the restaurant space. His rent keeps going up each year.
The real estate business is struggling with higher interest rates and more people working from home.
Will's restaurants make $350,000 less per store. At the same time, costs for rent, labor, and insurance have all gone up a lot in the last three years.
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