Why Three-Pound Lobsters Are a Restaurant Profit Trap

In this episode of Restaurant Business with Fexingo, hosts Lucas and Luna tackle a surprisingly profitable corner of menu science: seafood pricing. They break down why a lobster that costs the restaurant $18 landed can end up losing money by the time it hits the table, while shrimp and cod consistently deliver 300% markups. The episode centers on one real-world case: a New England seafood chain that tested a 'market price' lobster roll and saw margins shrink by 12 points. Lucas explains the math behind yield loss, prep labor, and plate waste, while Luna challenges whether transparency on pricing would actually hurt or help customer satisfaction. They also explore how fried fish sandwiches, with their cheap raw ingredients and high perceived value, quietly subsidize the rest of the menu. By the end, listeners will understand why one operator told Lucas: 'Sell the lobster to the tourist, but buy the shrimp for yourself.' The episode includes a brief mid-show reflection on why the show remains ad-free and how listener support makes that possible. #RestaurantProfitMargins #SeafoodEconomics #LobsterPricing #MenuScience #RestaurantBusiness #FoodCost #YieldLoss #SeafoodSupplyChain #MenuEngineering #FriedFish #ShrimpMargins #CodPricing #MarketPrice #RestaurantOperations #CostControl #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo