Lobster prices are diving, but not in restaurants
Despite a glut on the dock, diners aren't catching any break when they order the delicacy from a menu.
An explosion in the lobster population has led to diving wholesale prices for the crustaceans. But don't expect to see those savings reflected on your restaurant bill.
While consumers might be paying less when they buy the critters from their local fishmongers, restaurants are keeping their lobster roll prices high, the New Yorker's James Surowieki notes.
At Darden Restaurants' (DRI) Red Lobster, for instance, the Ultimate Feast dinner -- a platter filled with lobster tail, crab and shrimp -- is the priciest item on the dinner menu, at $25.79. Adding a Maine lobster tail to any meal will set you back $14.29.
That's despite a plunge in wholesale prices, which has Maine lobstermen receiving about $2.20 per pound for their hauls. That's down from about $3.19 per pound in 2011, according to the Kennebec Journal.
The reason for the stubbornly high restaurant prices comes down to economics and marketing.
For restaurateurs, cutting the prices of their lobster dishes could backfire if costs once again rise, ultimately pinching their bottom line. Worse, if customers became accustomed to cheap lobster, they might revolt at seeing higher prices later.
But the bigger issue, Surowiecki notes, is the perception of lobster as a luxury good. Decades of marketing it as a delicacy means restaurants can and will charge a premium.
The emergence of lobster as a high-end food is an about-face from its place at the bottom of the culinary totem pole for much of America's history. During the Revolutionary War, British prisoners reportedly revolted after being fed an excessive amount of lobster.
Now that Americans have elevated lobster to a delicacy, restaurants aren't eager to discount their prices, because that would undercut the message that a dish of, say, lobster risotto is worth several dollars more than plain risotto milanese.
And even though consumers may grumble, research shows they report enjoying products they're told are more expensive. In other words, that $20 lobster roll might not taste as sweet if it carried a buttered-roll price.
Follow Aimee Picchi on Twitter at @aimeepicchi.
What a bunch of baloney ,it looks to me that its business as usual for the fat cats
holding up the nation with their greed.
Overpriced, overrated and another repetition of an Article...
Why not do one, on wet toilet paper and Sears catalogues.?
At least we can bitch about Sears.
Because now, I think they sell wet toilet paper....Sweet Geezus..
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
More Market News
The solid report comes a month after the retailer closed all of its Canadian operations.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'