Restaurant owner explains how inflation made him charge nearly $16 for a BLT: ‘It’s unbelievable’

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By Alicia Warren, Fox Business

Inflation, the driving force behind many of the challenges businesses face today, caused one restaurant owner to charge nearly $16 for a BLT sandwich due to rising costs.

Will Restaurants Investment Group founder and CEO Brian Will detailed his monthly expenses during an appearance on “Varney & Co.” After a friend confronted him about the price of a $16 BLT sandwich.

The wholesale cost of the popular sandwich is just $5 according to Will, but the need to cover operational expenses is what caused a meal that was $12.99 three years ago to become $15.99 today.

He will detail his monthly expenses, share his insights on the business side of running a restaurant and justify the high price of meals.

Will is spending $20,000 a month renting space to house one of his restaurants in a “new mixed-use development,” arguing that it “costs too much” given the location.

“My utilities (are) $6,000 a month. My December business (was) $60,000, which means I get $86,000 in base cost the day I open the doors on January 1st,” Will explained.

“You calculate the food cost at 32%. I have $11 of gross profit on that sandwich. You take all my costs divided by $11 of gross profit, and I have to sell 93,000 sandwiches just to get to zero before I can make any money.”

Well Restaurants Investment Group was established in 2010.

The leading restaurant management company owns and operates brands such as Central City Tavern, The Tavern House, The Derby Sports Bar and Cantina Loca.

Weil told Fox Business that he is “dealing with a different economy now” than when he first signed the lease for the restaurant location.

“We signed our lease before coronavirus with fixed increments every year. I have a personal guarantee, so my rent won’t go down. It goes up every year forever,” he stressed.

The commercial real estate industry continues to face rising interest rates and the impact of remote work.

The restaurant owner confirmed: “My revenue per operation decreased by about $350,000 per store, while rent increased, employment increased by 30%, insurance increased by 40%, and rents increased by 10%.”

“It’s unbelievable how much my costs have gone up over the past three years.