Why didn’t you post my complaint about high prices?

/ Updated on July 29, 2017

Commentary on price isn't relevant to the quality of the food or service in a restaurant. Price/affordability is more of a personal issue for each individual guest to decide.

That being said, it is a fact that seasonal resort restaurants tend to be more expensive than non-resort restaurants. There are several reason for this: (1) Rents are much higher in a seasonal resort. Downtown Rehoboth, Lewes and Dewey restaurant often pay TWICE the rent that they would pay anywhere else. (2) Seasonal resort restaurants only make a reasonable profit in the summertime when the city is full of vacationers. Though many of them stay open year-round in order to keep their help, their profit margin is much, much lower for those 7 or so winter/off-season months. So seasonal resort restaurants have to adjust their prices higher to account for this disparity and still cover the costs of rent, food, supplies and labor. Basically, they rely on the 4 or so months of in-season/summer business to cover their entire year of costs.

In order to stay in business, restaurants set their prices somewhere between covering their costs (including rent, labor, etc.) and still attracting customers. If those prices are too high and they price themselves out of the market, then the restaurant will go out of business. If they are too low, they will go out of business because they could not cover their costs. With brand new restaurants, that remains to be seen after the crowds have settled down and reality sets in. Especially in the off-season.

What would you like to do?

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