Chef Moshe Roth Reveals Why Gourmet Meals Cost 950 Shekels Amid Rising Expenses

Chef Moshe Roth explained the reasons behind the high price of gourmet meals, which can reach 950 shekels, highlighting the impact of rising costs in the restaurant industry. According to Roth, the "food cost", the percentage of raw material expenses relative to the meal price, should ideally be between 30% and 33% to maintain profitability. This cost includes not only the food but also wine, water, and other components of the dining experience.

Roth illustrated this with an example of a meal containing expensive ingredients like caviar and lobster, which can cost the restaurant around 320 shekels. He emphasized that pricing such a meal below a certain threshold is unsustainable and could lead to restaurant closure within weeks. The difference between a meal priced at 800 shekels and one at 950 shekels may seem small to consumers but is critical for the restaurant’s survival.

Beyond food costs, meal prices must cover wages, rent, utilities, taxes, insurance, marketing, and other operational expenses. Wage increases have been significant, with the monthly minimum wage rising by 17.9% from 5,300 shekels in 2021 to 6,247.67 shekels in 2025, and the average wage increasing by 15.9% over the same period. Industry data shows that food costs typically consume 30%-35% of revenue, labor another 30%-35%, and overheads like rent and utilities 20%-25%, leaving a net profit margin of only 5%-10% for even successful restaurants.

Roth’s analysis reveals that the margin for pricing errors is shrinking due to rising raw material and operational costs. Restaurants with high occupancy rates may still struggle to be profitable if menu prices do not fully reflect these expenses. Thus, the seemingly steep price of 950 shekels for a chef’s meal is necessary to sustain the business in the current economic climate.