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How can avocado on toast cost $16.50?

Mar 29, 2016

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 I’m astounded that cafes can charge up to $16.50 for simple dishes such as avocado on toast, dressed up with buzz words like “crushed”, “crumbled” or “smashed”. Isn’t that what we do at home with the back of a fork? Aren’t they just different ways to mash an avo on a piece of bread?

The regular price range of avocado is between around $1.50 and $3 each. But adding a sprinkle of spice (Himalayan Rock Salt anyone?), and mashing it but calling it something different surely can’t be worth the $16.50 price tag. Tell that to the thousands who can pay a 400% mark up for brunch each weekend.

These people aren’t foolish, they know what an avocado is worth. So why are they willing to pay it? Because it’s about the experience of going out for breakfast or brunch, the lovely notion of a long lingering meal with family or friends fresh in the morning that they are buying.

And good cafes, cafes that are buzzing from dawn till well into the afternoon, know this. The breakfast market is getting bigger and bigger, and the number of cafes competing against each other are rising to match this.  

 

In a recent article, The Courier Mail reported that diners are paying up to $12 for bread and butter, $2 for condiments, and even a dollar for scrambling an egg. According to Restaurant and Catering Australia deputy chief executive, Sally Neville, “Labour makes up 45 per cent of costs. But more people than ever are eating out, and the reality is that if the value isn’t right, people will not engage with a business. So if they are going back, they must be happy with the experience being delivered.”

 

Delivering on the experience and expectation of going out for breakfast or brunch is what the $16.50 price tag delivers. As with any marketing, the product or service needs to deliver on the built up expectation the customer has formed, or you’ll never get a return customer. If the experience delivers, the customer won’t complain about the $16.50 price tag, and will come back time and time again.

 

Not to just pick on the avocado, below are some more price comparisons for breakfast food thanks to The Courier Mail.

 

Restaurant vs home cooked

1 x Poached egg $4.50 v 12 x barn laid large eggs $4.90

Tomato side $4.50 v 1 truss tomato $0.98

Spinach side $4.50 v 60g baby spinach $2.00

Mushrooms side $4.50 v 500 grams $5.98

Slice sourdough toast $2.50 v Sourdough loaf $4

 

I’m astounded that cafes can charge up to $16.50 for simple dishes such as avocado on toast, dressed up with buzz words like “crushed”, “crumbled” or “smashed”. Isn’t that what we do at home with the back of a fork? Aren’t they just different ways to mash an avo on a piece of bread? The regular price range of avocado is between around $1.50 and $3 each. But adding a sprinkle of spice (Himalayan Rock Salt anyone?), and mashing it but calling it something different surely can’t be worth the $16.50 price tag. Tell that to the thousands who can pay a 400% mark up for brunch each weekend. These people aren’t foolish, they know what an avocado is worth. So why are they willing to pay it? Because it’s about the experience of going out for breakfast or brunch, the lovely notion of a long lingering meal with family or friends fresh in the morning that they are buying. And good cafes, cafes that are buzzing from dawn till well into the afternoon, know this. The breakfast market is getting bigger and bigger, and the number of cafes competing against each other are rising to match this.   In a recent article, The Courier Mail reported that diners are paying up to $12 for bread and butter, $2 for condiments, and even a dollar for scrambling an egg. According to Restaurant and Catering Australia deputy chief executive, Sally Neville, “Labour makes up 45 per cent of costs. But more people than ever are eating out, and the reality is that if the value isn’t right, people will not engage with a business. So if they are going back, they must be happy with the experience being delivered.” Delivering on the experience and expectation of going out for breakfast or brunch is what the $16.50 price tag delivers. As with any marketing, the product or service needs to deliver on the built up expectation the customer has formed, or you’ll never get a return customer. If the experience delivers, the customer won’t complain about the $16.50 price tag, and will come back time and time again. Not to just pick on the avocado, below are some more price comparisons for breakfast food thanks to The Courier Mail. Restaurant vs home cooked 1 x Poached egg $4.50 v 12 x barn laid large eggs $4.90 Tomato side $4.50 v 1 truss tomato $0.98 Spinach side $4.50 v 60g baby spinach $2.00 Mushrooms side $4.50 v 500 grams $5.98 Slice sourdough toast $2.50 v Sourdough loaf $4

 

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