Quality meat? Quality cooking? Staff and other overhead costs? Etc.
In: Economics
From the table in Item 6 here, [2018 10-K – Del Frisco’s Restaurant Group, Inc. – BamSEC](https://www.bamsec.com/filing/141530119000028?cik=1415301), you can see the financial statements of Del Frisco’s Restaurant Group through 2018 (they went private after that).
The two biggest costs are: Cost of goods sold (i.e. steaks, ~25% of revenue) and Restaurant operating expenses (i.e., rent and salaries, 40-50% of revenue) followed by General and Adminstrative costs (i.e. executives and managers, <10% of revenue) and Depreciation and Amortization (usually the reduction in value of their buildouts, <10% of revenue).
There are a few other items in there, but across the 5 years shown, they showed very little operating profit.
Admittedly, there are several confounding variables in there (the business was investing heavily in a new concept so costs weren’t optimized), but you can expect that the actual cost structure for the business is around 70-90% of the amount you’re paying.
Separately, they make a lot on alcohol, so the steaks may even be less profitable than that from a fully-loaded cost perspective.
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