r/SipsTea • • 5d ago

SMH Fast food prices are outrageous now

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u/RealMullido 5d ago

Texas Roadhouse is absolutely not losing money on food, you complete fool.

You can buy 12 oz of USDA choice strip in the grocery store $14 bucks a pound. Id guess food and labor for this plate is <$10.

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u/thingsorfreedom 5d ago

There's unlimited rolls, and two sides including a choice of baked potatoes (which need to be baked for an hour), salads with hard boiled egg, cheese, lettuce, tomato and dressing, chili, and a host of other choices that are included in that price. Does this particular steak make money. I wouldn't know. I do know it's not going to be a lot. Any profit on alcohol or even soda (which costs like 5 cents) is going to blow that away.

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u/RealMullido 5d ago

My guy, you've clearly never worked in a professional kitchen. What makes you think you know what youre talking about? 

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u/thingsorfreedom 5d ago

My guy I read 10-Q and 10-K reports on profits and losses from publicy traded companies and you know, read in general.

Fountain drinks, iced teas, and alcoholic drinks have some of the highest markup and profit margins in any casual estaurants.

Appetizers & Add-Ons: Items like the Cactus Blossom (deep-fried onion), Rattlesnake Bites, and add-ons like extra cheese, bacon, or sauces have very low ingredient costs relative to their menu price.

Chicken Critters (chicken tenders), Grilled BBQ Chicken, and Pulled Pork typically yield better profit margins than beef steaks, as chicken and pork carry lower wholesale costs than beef.

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u/RealMullido 5d ago

And yet, despite all this reading, you never managed to learn what "loss leader" means.

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u/thingsorfreedom 5d ago

You mean a menu item or promotion sold at or below its production cost price to attract customers through the door, with the goal of making up the loss through high-margin add-ons, drinks, or repeat visits?

Yep. Suspected it might be given its really low price compared to Outback selling the same cuts for $29 and our local steak restaurant selling it for $48.

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u/cjmcberman 5d ago

You’re just wrong. There are no loss leaders on the menu.

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u/thingsorfreedom 4d ago edited 4d ago

Texas Road House does not publish that data. But on their q2 2026 earning call they did talk about it.

Texas Roadhouse uses steak as a "loss leader" to drive massive foot traffic, while relying heavily on alcohol, appetizers, and premium add-ons to generate actual profit margins. While food accounts for roughly 85% to 87% of total sales, its overall food and beverage cost sits high at 35.4% as of 2026 due to compressed margins on hand-cut beef.

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u/RealMullido 5d ago

Suspected

OK boss man. This is the word I need you to focus on.

You suspected. So you dont know. And you know you dont know. So why are you arguing with me? I know.