Monday, November 7, 2016

A Closer Look at Restaurant Prices

So, allow me a brief diversion while the subject is on my mind: Australian Restaurant Price Sticker Shock.  It is my evaluation/opinion -- that Americans are so conditioned by added taxes and tipping on restaurant bills that we perceive Australian restaurant prices as substantially higher in the same way that we Americans perceive that some other nations have substantially higher income taxes when we don't consider the additional costs we have to pay separately to get the same services.  This situation is clearly displayed in Michael Moore's latest movie: "Where to Invade Next" (trailer here). Whether or not you like Michael Moore, it's a fun exposure to some of the ideas Americans should "take home" from other countries such as extended holidays, free college education, universal health care, top-notch school lunch programs, to name a few.

Anyway, here's my point.  Here in Australia -- in regular dining, you might see a pub burger/fries for $20 and an ordinary beer for $8.80 -- and instantly believe prices are outrageous compared to America.  But when you analyze it, it's not the case.  Let's take a closer look:
                                           Burger/Fries      Beer
On Australian Menu            $20.00            $8.80
Currency Convert to USD     15.35              6.76
15% Tip Already Included    13.05              5.75
8% Tax Already Included      12.01              5.29

So the equivalent American menu price would be $12.01 for the burger/fries and $5.29 for the beer and that's assuming a 15% tip -- many tip more.

Another way to think about it would be that one needs to subtract around 40% off Australian restaurant menu prices to compare them to an American restaurant menu price.

Now, even though I know the facts -- it's still challenging to adjust to seeing the higher menu prices much in the same way that we are easily tricked by advertisements for $3.99 rather than $4.00.

But as I've blogged about before, change is hard -- and rethinking restaurant menu prices is only one of the challenges.  I haven't yet strayed to the other side of the road -- but I'll be damned if I can train myself to stop flipping on the windshield washers when I'm trying to turn on my turn signals.  Why does the location of those need to be flipped?  After all, even though I'm driving on the other side of the road and sitting on the other side of the car, I'm not turning the steering wheel the other way and the gas pedal is in the same place -- so why can't the turn signal be standard - as in, on the left side?

And there you have a glimpse into some of my more random thoughts today.  Back to blogging tomorrow.  I am loving Australia!


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