re: Fire House Burgers Drago's opens Monday

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low overhead

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This is a myth.

Pretty much all restaurants have similar fixed costs. Rent, insurance, staff, equipment, etc... Food costs may be slightly different, but in general the goal of most restaurants is to have food costs below 30% of the total sales.

So all these pho and burger places that are aiming for a $12 check average are really just cutting their profitability in the overall scheme. Wise man once told me, "Unless you can absolutely bank on volume, never open a restaurant with a $15 or under check average, when you can open one with a $20 check average."

With the increase in # of burger and pho shops, unless you are really good, you arent going to get the required volume to make up the loss of revenue from having such a low check average. Overhead be damned.