Do you know what you are paying for?

The costs of your dinner adds up to so much more.

October 7, 2015

Elana Geist 3 minutes read

Fiamma Grill partner, Diogo Barendse tries to buy locally produced food where possible, which comes at a price.

When you walk into Fiamma Grill, Mozambik or Eat Local, you know you are in for an expensive night, but you do not know how much you are getting for free.

Take a seat at Fiamma Grill for example, did you know the chair you are sitting on costs R1400?

The table is worth about R4000, add R150 for the crisp, white table cloth plus another R42 for each of the delicate wine glasses.

Sure, the table does not need to be as nice and the chairs do not have to be so comfortable, but then isn’t this what you expect from an upmarket restaurant?

These are just some of the obvious costs according to Fiamma Grill partner, Diogo Barendse.

Then off course there are the staff members, who cost about R8000 a day, depending on how busy it is.

“There is no public transport to take our staff home late at night, so we pay for half, which comes to about R14 000 per month,” he said.

Now add rent, electricity (and a R300 000 generator), water (and a couple of jojo tanks) and no one has had a bite to eat yet.

“One of our signature dishes is the Tomahawk steak. We buy the raw meat from our handpicked, local supplier for about R90. In order for us to break even, we have to sell it for around R200. People look at the price and call us crooks. We are in the red for 80% of the month.”

Eat Local owner, Hugo Palacio sings the same tune.

“People need to appreciate what goes on behind the scenes to offer you, the customer, a special time,” said Palacio, while looking at the focaccia bread on the table.

“When you arrive at Eat Local, we give you a menu, focaccia bread which is made of expensive italian flour and fresh garlic. With that you get olive oil, balsamic vinegar, fresh chillies and parmesan cheese. Then you ask for a glass of water. We give you a glass, water, lemon and ice. That glass needs to be cleaned, which requires soap at about R600 per week per machine.”

Palacio said the odd slice of cake for a birthday or a glass of schnapps to thank a customer adds up to roughly R15 000 in freebies per month.

The well-known chef can go on for hours about costs, but he said the main thing people forget is that they pay for the experience, not just the food.

“People want to feel special and that personal touch we offer is priceless. You cannot justify high prices if you offer nothing in return,” he said.

The great vibe, personal attention and, of course, delicious food is Mozambik’s secret, which owner Brett Michielin pays a lot for.

“Expenses have gone through the roof in the last five years. Little things such as take away containers, serviettes and sweets with the bill cost about

R16 000 last month alone. The R200 000 generator costs about R100 in diesel an hour,” said Michielin.

Another major factor is that the staff are at work from about 10am till 10pm, but the restaurant only really trades during lunch and dinner time.

“We have to pay our staff to be here the whole day, but we only make money for a couple of hours, depending on the season.”

“People think we make big profits, but the truth is our profit scale is between seven and 15 percent. A lot of owners do not make money. They do this because they love it, it is not a passion, only love keeps this going.”

He said the costs are in the details, which is what sets a good restaurant apart from an average one.

“We use real butter in our lemon butter sauce, not margarine, which is not cheap. We cook our rice in coconut milk, because it is so much better, but have you seen the price of coconut milk?”

He said if you cannot make 150% mark up, you will not make any money.

“If you are running a good ship, you can make a 15% profit, that is it.”

So next time you are about to complain about the prices on the menu, ask yourself how much value you are getting from the restaurant first.