Two chefs have revealed the hidden costs behind restaurant dishes, showing that profits can be as low as 44p on a £36 main course. Chantelle Nicholson, chef-patron of Apricity in London W1, and Sally Abé, chef and restaurateur at Teal in London E8, provided detailed breakdowns of their dishes to illustrate the financial pressures on the hospitality industry.
Asparagus starter at Apricity: £21, profit £1.65
The starter features Flourish Farm asparagus, smoked emulsion, and watercress. Nicholson explained that asparagus can be more expensive than some proteins, costing between £15 and £20 per kilo due to hand harvesting and rising labour costs. The dish's ingredients cost around £3, but labour, energy, and other overheads total £56, which is divided across the menu.
Nicholson highlighted numerous hidden costs: “There are so many random costs that nobody sees: things like having our extraction chimney cleaned twice a year, which is tall because we’re in central London, so we need to rent a cherry picker. This makes our annual extraction cleaning bill about £4,000. Add fire alarm maintenance, fire suppression systems and testing, and that’s £8,000. Simply putting tables and chairs outside my restaurant means paying £700 a year to the council.”
The breakdown for the starter: ingredients £2.18, VAT £3.67, staff costs £8.56, rent/rates/utilities £2.41, running costs (accountancy, PR, pavement licence, waste collections, till system, website, linen, etc.) £2.53.
Beef main course at Teal: £36, profit 44p
The main course features beef sirloin, short rib, and wild garlic. Abé noted that beef prices have risen 2.5% due to feed and labour costs, and she must pay VAT on top. The sirloin costs £6.50 and the short rib £1.50, before any other costs. The jus alone costs £1 per portion, made with three bottles of red wine and one bottle of port, plus veal and chicken stock.
Abé said: “I think one of the reasons customers struggle to understand the price of restaurant dishes is that the cost of food in supermarkets is so much cheaper. But it also feels as if hospitality businesses are not allowed to make money. Nobody blinks at paying £500 for an iPhone, and Apple makes a significant profit on that. Yet, right now, restaurants are not even in a position to make 10% profit.”
The breakdown for the main course: ingredients £10, VAT £7.20, staff costs £9.60, rent/rates/utilities £5.76, running costs £3.
Industry challenges and hidden expenses
Both chefs emphasized that many costs have doubled, and restaurants are squeezed by rate hikes while unable to increase prices proportionally. Abé concluded: “We’re only just washing our faces – yet we are the backbone of people going out, seeing friends and having fun.”
