Chris Liss on Nostr: Was thinking about this re high-end restaurants. The wine is marked up like 4x, the ...
Was thinking about this re high-end restaurants. The wine is marked up like 4x, the food is closer to break even. So all the profit is in the wine.
But only some people drink wine, and of those, a smaller subset drink a lot of it, and an even small subset drink a lot of expensive wine.
So if the profit is in the wine, and most of that profit is from the whales who buy multiple expensive bottles, then basically the entire restaurant with its full menu and wine list just exists to reel in the whales.
But you need the regular customers to provide the break-even demand for a full menu of food and also the atmosphere.
I don’t know if this is true, but it just occurred to me.
But only some people drink wine, and of those, a smaller subset drink a lot of it, and an even small subset drink a lot of expensive wine.
So if the profit is in the wine, and most of that profit is from the whales who buy multiple expensive bottles, then basically the entire restaurant with its full menu and wine list just exists to reel in the whales.
But you need the regular customers to provide the break-even demand for a full menu of food and also the atmosphere.
I don’t know if this is true, but it just occurred to me.