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7 Lessons From a 66 Year Old Restaurant Menu Print E-mail
(12 votes, average 4.83 out of 5)
Food - Restaurants
Written by Omie Ismail   
Friday, 11 June 2010 03:32
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The year was 1943. The Second World War was raging in the Pacific and Europe and the Zoot Suit Riots were pitting soldiers against Latinos in Los Angeles. The atom bomb was still on the drawing board and it was 5 years before the first McDonald's opened. You could grab a hamburger from a good restaurant for 40 cents and get somMenu_1943Re curly fries for another 20. A Coke? That'll cost you another dime, mister. For a little more than a dollar you could substitute a steak for the hamburger and exchange the coke for a milkshake concocted with real milk and real ice cream.

I dug up all this information on a recent visit to Twohey's restaurant, an icon in the Los Angeles area. As I sat down to eat lunch with my family, a picture of their original menu beckoned and prices weren't the only thing that caught my attention. I'd like to share 7 lessons I learned from that 66 year old menu.

1) Inflation:

Naturally, the first thing that stood out was the prices. If you could still order off the old menu, there wouldn't be a hungry person in America today and if you're still challenged by the concept of inflation, one look at the menu will clarify your mind. The cool thing about the menu is that 66 years later they were still selling some of the same items. You can see the current menu on the web. The average price of the 10 items I matched was $0.47 in 1943 compared to $6.10 today. That's a stunning 1,302% inflation or 4.05% per year. For example, back in 1943 you could  treat three of your buddies to steak sandwiches, fries and a large coke and pick up a $4.00 tab. Today, that act of generosity would cost you over $54. Other wallet busters included hot fudge sundaes for 35 cents and a stack of pancakes for 30 cents. A Root beer float or freshly squeezed lemonade would set you back another 20 cents.

2) Meals vs. Sandwich Only

Back then, you didn't have to pay for the fries if all you wanted was a sandwich. Today they are included in the meal and there is no option to "just get the sandwich." We often wonder why we have obesity in America and part of the problem is that everything comes as a meal today. In most restaurants, it costs you the same if you don't want high carbohydrate and fatty fries. Back then you would have saved approximately 20% by not ordering the fries.

3) Sales Taxes

In California the sales tax was 3 percent. That's a far cry from the current 9.75% rate in Los Angeles County. This is not a misprint; in nominal dollars, the sales taxes on that burger went up a stunning 5,464% and somehow the local and state governments managed to have balanced budgets. For those of you history buffs, West Virginia was the first state to enact a sales tax in 1921 and California didn't have a sales tax until 1935. I would have paid 12 cents in taxes for treating my three buddies to a steak meal.  Today, the state charges me $5.40 for the privelage. I guess that's why I have fewer friends.

4) No Fish!

Nowhere on the menu was there a single item containing fish which is interesting considering that the Pacific Ocean was a short drive away. Americans didn't eat much fish in the 1940s, less than half of what we eat today. Back in the 40s, you could hop on a surfboard in Malibu, reach in the water and grab a lobster dinner. Today, you need to strap yourself in diving gear and hit some far away spots.



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Sleuth  - Eating out in the 1940's. |2010-06-12 09:49:27
Recalling what my parents and relatives told me eating out in a restaurant happened only for very special events. It was not on your weekly things to do list if you did not feel like cooking.If the average family ate out only two to three times a year, obesity did not have a chance to enter the picture from eating food prepared in a restaurant. Home cooked meals were the way of life.
frugal nomad  - staff writer |2010-06-12 10:04:30
Before fast food chains came into being, which wasn't until the 1950s - the closest thing to a fast food chain were diners and they didn't have mega billions to spend in ads or free chinese made plastic toys to lure in the kids.

Even today, who thinks of taking their kids to a fancy french restaurant. They don't even do that in France.

Look at the old movies, name one movie where the parents take their kids out to dinner.

David |2010-06-12 08:00:39
The amount of inflation is only 1200%, not 1300%. You have to divide the increase in price (not the new price) by the old price. The annual inflation rate looks OK.
Omiewon  - The actual math |2010-06-12 11:55:07
David,
You are correct based on the average prices put forth. Warning: Math guy type answer:
The actual calculation was done on individual components: New Price/Old Price)-1 which is the same thing as New Price/Old Price - Old Price/Old Price = (New Price - Old Price)/Old Price.

Then the average was taken of the percentages on the basket of 10 items.

You actually get a different number when you take the average of the individual component increases and the average of the prices and then calculate the increases. My guess is the BLS would take a basket approach and look at the price of the basket in which cas 1,200% would be the answer.

FYI, inflation over that period was about 1,132% so fairly consistent.
haverwench  - It's all about portions |2010-06-11 13:26:17
The main reason folks were thinner back in the days when neither salad nor fish was on the menu was probably those smaller portion sizes. We're not eating worse, we're just eating *more*. (Though there is one up side: that price inflation doesn't look quite as bad when you consider that today you're getting more food for your money.)
Ken Mitchell  - The large portions are only half of the story... |2010-06-11 19:10:07
The reasons that restaurant meals have such enormous portions these days - which contributes to all of our distended waistlines - is the fact that the cost of the FOOD is now the smallest fraction of the cost of a restaurant meal. Between the taxes, the labor and the cost of electricity, the cost of having the lights on and the doors open in a restaurant is half the cost of the meal.

And since you the consumer want to see some value for your money, the restaurant loads up the plates - so that when you look down at the table, you think it actually LOOKS LIKE twenty bucks worth of food, rather than feeling that you got ripped off by a high price for a small meal.
frugal nomad  - Food is cheap |2010-06-11 22:22:01
Over the last century, food is one of the few things that has gone down as a percentage of income. I haven't seen recent stats but it does seem to be back on the rise in terms of percentage of income. I've never heard so many middle-class families complain about the cost of food. Maybe that's one of the signs we should follow to gauge the decline in the average American's standard of living.
Omiewon  - Food is cheap, restaurants are not |2010-06-12 12:02:53
Generically speaking, food has gotten fairly inexpensive. A combination of huge increases in productivity in our farms and more efficient distribution networks. Food in America is so much cheaper than in most countries that a few years ago I was listening to an economist and he declared that "Food was free". In many ways, he is correct. You can pick up 10 lb bag of potatoes for $3 and a 50lb bag of rice for $10 and meats on sale can be downright cheap. Compared to an average salary of $45,000, it really isn't much if you are buying basics. Food can be as little as 5% of salary.

A cup of coffee is 20 cents. A cup of coffee at Starbucks starts at about $1.50.

One of the biggest costs for a restaurant is rent, labor, and utilities. Fast food restaurants figure out how to push so much volume keeping rent constant that they can lower the cost of food.

It would be interesting to look at what the rental costs and labor costs were 66 years ago vs. today.
 
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