Ever notice how your restaurant bill seems way higher than it should be? You’re not imagining things. Some menu items come with markups so crazy that restaurants are basically laughing all the way to the bank. While most places are honest about what they serve, there are certain things on almost every menu that cost pennies to make but somehow end up being the most expensive items you can order. Knowing which dishes to skip can save you serious money and keep you from feeling like you got played when the check arrives.
Fancy bottled water costs more than soda
Ordering bottled water at a restaurant might seem like a healthy choice, but it’s one of the biggest wastes of money on the menu. Most restaurants charge anywhere from three to eight dollars for a bottle of water that costs them maybe fifty cents. The markup on bottled water can be as high as 1,000 percent in some places. That’s more expensive per ounce than almost anything else they serve, including alcohol. The water itself isn’t any better than what comes out of the tap in most American cities.
What makes this even more frustrating is that restaurants are required by law to give you tap water for free if you ask for it. The tap water goes through the same city treatment and quality checks as bottled water, and in blind taste tests, most people can’t even tell the difference. Some restaurants push bottled water hard because the profit margin is insane. Next time your server asks if you want still or sparkling, just ask for regular water. Your wallet will thank you, and you’ll get unlimited refills instead of paying for each bottle.
Pasta dishes have the highest profit margins
Pasta is dirt cheap to buy in bulk, yet restaurants charge premium prices for it. A box of pasta that costs a restaurant less than a dollar can be turned into multiple dishes that sell for fifteen to twenty dollars each. The sauce doesn’t cost much either. Even fancy ingredients like cream or tomatoes are relatively inexpensive when purchased in restaurant quantities. The markup on pasta dishes regularly reaches 300 to 400 percent, making it one of the most profitable items any restaurant can sell.
The portion sizes look impressive because pasta takes up a lot of space on a plate, but the actual cost to the restaurant is minimal. Adding chicken or shrimp bumps up the price by another five to eight dollars, even though those proteins cost the restaurant maybe two dollars extra. Restaurants love when you order pasta because it’s easy to prepare in large batches and the ingredients have a long shelf life. If you’re trying to get the most value for your money, pasta is usually not the way to go. Save those dishes for when you cook at home, where a whole meal costs less than one restaurant plate.
Soft drinks cost almost nothing to make
That three-dollar Coke you just ordered? It cost the restaurant about fifteen cents to make. Soft drinks from a fountain machine are one of the biggest money makers for any restaurant. The syrup comes in concentrated form and gets mixed with carbonated water, which is practically free. A single box of syrup can make dozens of drinks, and restaurants charge the same amount for each one whether you get refills or not. The cup and ice cost more than the actual drink inside it.
This is why some restaurants offer free refills while others don’t. Either way, they’re making a huge profit on every soft drink sold. The markup can be as high as 1,500 percent at some places. When you consider that a family of four might order four drinks with dinner, that’s twelve dollars in pure profit for the restaurant from beverages alone. Asking for water with lemon instead saves you money and gives you basically the same refreshment. Some people try to game the system by ordering creatively at fast food places, but the drink markup happens everywhere from cheap chains to expensive steakhouses.
Coffee and tea are marked up ridiculously high
Ordering coffee or tea at a restaurant means paying several dollars for something that costs them pennies to brew. A pound of coffee that costs a restaurant ten to fifteen dollars can make about forty cups. That means each cup costs them maybe thirty cents, including the water, electricity, and filter. Yet they charge three to five dollars per cup in most places. Tea is even cheaper because a box of tea bags costs almost nothing and each bag can be used to make a whole pot.
The profit margins on hot beverages are so good that some restaurants have started offering free refills just to keep people sitting longer and potentially ordering more food. Specialty coffee drinks like lattes or cappuccinos have an even bigger markup because people assume fancy preparation means higher cost. In reality, the milk costs more than the coffee itself. Restaurants also benefit because coffee and tea are easy to prepare and don’t require skilled labor or careful timing like food does. A server can brew a pot in two minutes and sell ten cups from it.
Alcohol prices are completely out of control
Ordering a beer or cocktail at a restaurant means paying three to four times what you’d pay at a store. A bottle of beer that costs two dollars at the grocery store will run you seven or eight dollars at most restaurants. Mixed drinks are even worse. A simple vodka tonic that takes thirty seconds to make and costs the restaurant maybe a dollar in ingredients sells for ten to fifteen dollars. Wine markups are legendary, with restaurants often charging double or triple what the same bottle costs at a wine shop.
The justification restaurants give is that they need a liquor license and trained bartenders, but the markup still seems excessive. Some places charge fifteen dollars for a single glass of wine from a bottle that costs them twenty dollars wholesale. That means they make their money back and then some on just two glasses. The truth is that alcohol is a huge profit center for restaurants, and many rely on drink sales to stay in business since food margins are lower. Tipping practices around alcohol have also become controversial lately, making the whole situation even more expensive for customers.
Seafood often isn’t fresh despite high prices
Restaurants charge premium prices for seafood and make you think you’re getting something fresh from the ocean. The reality is that most seafood served in American restaurants was frozen at some point unless you’re eating at a coastal location. That expensive fish entree probably spent weeks in a freezer before landing on your plate. There’s nothing wrong with frozen seafood quality-wise, but paying fresh prices for frozen fish is a ripoff. The markup on seafood is already high because people expect to pay more for it.
Restaurants take advantage of this by charging premium prices across the board for any seafood item. The fish they serve often costs them less than beef or other proteins, but they charge more because customers accept it. Shrimp is particularly overpriced since it’s cheap to buy in bulk frozen but gets sold like it’s a delicacy. Unless the menu specifically says the fish came in that day or was never frozen, assume you’re paying fresh prices for frozen product. Some restaurants are honest about this, but many use vague language like “fresh seafood” when they really mean it was thawed recently.
Salads cost more than their ingredients justify
You’d think ordering a salad would be one of the cheaper options since it’s basically just vegetables. Wrong. Restaurants charge twelve to eighteen dollars for salads that contain maybe three dollars worth of lettuce, tomatoes, and other toppings. The markup is huge because people associate salads with being healthy and are willing to pay more for supposedly better choices. A bag of lettuce costs a restaurant a couple dollars and can make several salads. Even fancy mixed greens are relatively cheap when bought in bulk.
Adding grilled chicken to your salad bumps the price up by six to eight dollars even though the actual chicken breast costs the restaurant maybe two dollars. The dressing is basically free since bottles of it cost very little and last forever. Some restaurants have started charging extra for things that used to be included, like croutons or cheese. The whole salad situation feels like a scam, especially when you realize you could make the same thing at home for a quarter of the price. Restaurants know people order salads when trying to eat lighter, so they price them high because there’s demand.
Kids meals are a sneaky way to overcharge
Kids meals seem reasonably priced at six to eight dollars until you realize what you’re actually getting. Most kids meals are tiny portions of the cheapest foods possible: chicken nuggets, mac and cheese, or a plain burger. The ingredients cost the restaurant maybe a dollar fifty. That’s a markup of several hundred percent on food that requires almost no preparation skill. The chicken nuggets are frozen and just need to be heated. The mac and cheese comes from a box or gets made in huge batches.
Restaurants justify the price by including a drink and sometimes a dessert or toy, but those items cost them almost nothing too. A small fountain drink costs fifteen cents and a cookie costs maybe twenty-five cents. Parents pay it because feeding kids at restaurants is already stressful and the kids menu seems like the path of least resistance. The portion sizes are so small that older kids need to order from the regular menu anyway, but then you’re paying fifteen dollars for the same chicken nuggets in a larger quantity. Some places won’t even let kids over ten order from the kids menu, forcing you into higher-priced options.
Side dishes add up to pure profit
Ordering sides separately is a huge waste of money. That side of fries for four dollars? The potatoes cost the restaurant maybe thirty cents and the oil is reused hundreds of times. A side of vegetables running you five dollars contains about fifty cents worth of frozen veggies that got steamed in minutes. The markup on side dishes is often higher than on main courses because restaurants know people will order them without thinking twice. Rice costs almost nothing to make, yet restaurants charge three to five dollars for a small bowl.
The sneakiest part is when restaurants charge extra for sides that used to come with the meal. Some places now list entrees at a lower price but charge separately for every side, making the final bill much higher than expected. A steak might be listed at twenty-five dollars, but by the time you add a vegetable and a starch, you’re at thirty-five dollars. The restaurant makes it look like they’re offering competitive prices when really they’re just hiding costs. Some customers have gotten creative about complaining to get free items, but that’s not cool either. The better solution is just knowing which sides are ripoffs and avoiding them entirely.
Knowing which menu items are overpriced helps you make smarter choices when eating out. Restaurants rely on customers not thinking about food costs or markups, but now you know better. Stick to items where you’re getting real value like entrees with included sides, skip the expensive drinks and go with water, and avoid things like pasta that cost almost nothing to make. Your bank account will be healthier, and you won’t feel like you got ripped off every time you eat out.
