Profit margins for restaurants are typically in the single digits, so the company almost definitely lost money after the discount. A $25 tip for a $50 meal at Denny’s is a lot more than “decent”
I guarantee their employee meals aren’t sold at a loss, chain diners have the cheapest input cost of any restaurant because it’s all eggs, breakfast meat and bread
Those are not the only expenses. They'll have labor, rent, utilities, debt. I'm guessing labor is highest. After all that, their profit margins are <10%, so the employee discount meals are definitely sold at a loss.
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u/harpswtf 2d ago
Profit margins for restaurants are typically in the single digits, so the company almost definitely lost money after the discount. A $25 tip for a $50 meal at Denny’s is a lot more than “decent”