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Always surprised to hear friends & acquaintances remark that a $50 dry-aged steak from a steakhouse is overpriced.

24 ounces of Prime beef, aged for a month? I'm not sure I can get it myself for less than $25/lb.

No way they're making money on the beef.

A well known Dutch chain restaurant owner once said "They're eating me poor, but drinking me rich".

Good waiting staff is worth their weight in gold. Knowing when to ask if the customer would like an extra drink is an art. On a side note: I never get the 'free refill' policy in the states. Why would you give something away that has a 300% margin...

For drinks that get free refills the initial sale means more than the refills. It literally cost 1c to provide the drink and you sold it for $3.00 (that's the 300% margin). Who cares if you spend another 1c to provide a free refill if that would be the difference in the customers mind on whether they should buy the drink initially or just have water or OJ (something that has negative margin, or a very low margin).

Ah, so the refills are for fountain drinks only? I'm not from the US, and I never realized that. Thanks!

Yeah fountain drinks and occasionally tea (sweet or unsweet) depending on where you are at.

No problem!

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