Rising prices cut margins on restaurant markups

05/25/2011 | San Francisco Chronicle

Restaurants used to making money from markups on certain items including eggs, pasta and coffee now find the margins tightening as prices rise. Tea, wines by the glass and green salads are still sure bets, say some restaurateurs, who must also balance profit-making dishes with loss leaders such as steak and seafood. Rising transportation costs have cut down on the ability to make large profits from markups on specific items, said San Francisco restaurateur Dennis Leary.

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