Over the past five years, food and labor costs for restaurants have each surged by around 35%, forcing establishments to raise menu prices dramatically. Between February 2020 and April 2025, average menu prices climbed 31%, according to Bureau of Labor Statistics data. While dining out remains a cherished American pastime, certain dishes now carry markups that make them particularly poor value propositions. Research from Kalinowski Equity Research shows the gap between restaurant and grocery price inflation hit 310 basis points in August 2024, five times wider than the historical average.
Let’s be real here. When you’re shelling out your paycheck for a meal, you deserve to know which dishes are actually worth it.
Pasta Dishes
Pasta has become one of the biggest profit generators for restaurants, which means you’re often paying way too much for something incredibly cheap to make. Most pasta dishes like spaghetti Bolognese cost restaurants between two and three dollars to make, yet places like Olive Garden sell them for around nine dollars, representing a markup of roughly 350%. Industry data shows pasta typically has only about 15% cost compared to menu prices, the same low percentage as salads. The noodles themselves cost pennies, and even with sauce and a few add-ins, the actual ingredient cost remains shockingly low. When restaurants throw on sautéed mushrooms or olives, those profit margins climb even higher since these toppings cost almost nothing wholesale.
Seafood Appetizers
A shrimp cocktail at chains like Red Lobster costs around ten dollars, nearly ten times more expensive than making it at home for roughly a buck sixty. The perception of luxury drives these prices more than actual food quality. Restaurants charge significantly more for seafood appetizers simply because of the perception of luxury, even when a shellfish starter and a chicken starter cost the restaurant the same amount to prepare. Unless you’re dining at a coastal restaurant serving freshly harvested seafood, you’re basically paying premium prices for frozen shrimp that traveled thousands of miles. The markup here borders on offensive, especially considering that most appetizer portions are tiny to begin with.
Coffee and Soft Drinks
The beverage markup at restaurants represents one of the most egregious pricing schemes in the entire industry. Each cup of coffee might cost a cafe only 15 or 20 cents to produce, but you’re probably paying between a dollar fifty and nearly two dollars, creating a markup exceeding 900%. Fountain sodas cost restaurants about a quarter to 40 cents per drink, yet establishments charge three to four dollars, translating to a markup approaching 1,000%. Coffee prices at restaurants started rising again in July 2025, with median regular coffee reaching $3.52 in August, representing a year-over-year increase of nearly 3%. Fast food joints build combo meals around these drinks because they’re essentially printing money with every soda they sell. Your wallet would thank you for sticking with water.
Side Dishes
Side dishes represent pure profit for restaurants since these ingredients are already sitting in the kitchen for other menu items. Restaurants earn substantial profit from sides like steamed broccoli, rice pilaf, spinach, or mashed potatoes because these items already exist as components of other dishes, making them essentially free inventory to sell separately. You’re paying premium prices for what amounts to kitchen scraps repackaged as an à la carte option. A baked potato might run you six to eight dollars at some establishments, despite being one of the cheapest and easiest items to prepare. Baked potatoes are incredibly inexpensive and simple to make by wrapping them in foil and popping them in the oven, yet the restaurant price rarely feels justified even with toppings like chives, bacon, and sour cream. Honestly, ordering sides separately is one of the quickest ways to inflate your bill without getting actual value.
Burgers
The median burger price hit $14.47 in August 2025, up nearly 3.5% from the previous year. While beef prices have legitimately increased, with uncooked ground beef prices rising nearly 13% over the past year, the restaurant markup still feels excessive for what amounts to a relatively simple preparation. America’s cattle inventory sits at a 75-year low, which partially explains the price hikes, but that doesn’t make dropping fifteen bucks on a basic burger any easier to swallow. Many casual dining spots charge nearly the same for a burger as they do for more complex entrees, even though the actual food cost and preparation time are significantly lower. The markup becomes particularly painful when you realize you could buy premium ground beef and craft gourmet burgers at home for a fraction of the cost.
Wedge Salads
Some establishments like New York’s Delmonico restaurant charge a staggering $28 for a wedge salad, and while gourmet toppings like heirloom tomatoes and specialty blue cheese provide some justification, the markup still seems questionable, with prices climbing rapidly across the board. Iceberg lettuce consists of 96% water, making this starter rarely filling enough to justify its price tag. The wedge salad became trendy years ago, and restaurants continue capitalizing on that reputation to charge absurd amounts for what essentially amounts to a quarter head of lettuce with some dressing and toppings. The preparation takes minutes, the ingredients cost next to nothing, yet you’re expected to pay nearly the same as an actual entree. It’s hard to think of a worse value proposition on most restaurant menus right now.
The restaurant industry faces genuine challenges with food costs increasing 28% since 2019 and operational expenses climbing across the board. Yet understanding which dishes carry the most extreme markups helps you make smarter dining decisions. These six menu items represent particularly poor value in today’s inflated market, where 55% of customers say they’ll visit restaurants less often if prices keep climbing. What surprises you most about these markups?
