There’s been a sharp increase in the cost of ingredients since the pandemic. While restaurants already operate on thin margins, rising ingredient and fuel costs, along with navigating complicated tariffs, mean the budget is tighter than ever. Not to mention factoring in overhead expenses like rent, utilities, and labor.
Welcome to “What’s That Cost?” This by-the-numbers breakdown series examines the costs behind creating one specific dish from a local restaurant, providing you with a glimpse into what it takes to make it and why you pay what you pay.
This time, we’re breaking down the costs for making the wagyu smash burger on the menu at Minhwa Spirits, from ingredients to labor to utilities.
Wagyu smash burger at Minhwa Spirits
The wagyu smash burger is a bestseller at Minhwa Spirits in Doraville, despite the $18 price tag. Plus, it comes with fries and a pickle. The burger’s real appeal, however, lies in the marinade. Chef Lino Yi marinates the burger meat for at least six hours in his Korean barbecue sauce.
Much of the expense for the burger comes from the meat, which Minhwa Spirits sources from Mishima Reserve, based in Seattle, Washington. Wagyu beef stands apart from other beef, not only for its quality, but for its exclusivity.
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Minhwa Spirits co-founder Ming Han Chung said the burger wasn’t originally made with Wagyu beef, and it retailed for $15.
“Because ground beef has gone up so much, we felt we needed to give the customers better value,” Chung told Rough Draft. According to Food & Wine, the average price of regular ground beef has risen by 19.3% since December 2024. American cattle farmers are also feeling the pinch, reports NPR, as the costs for raising herds for meat continue to rise.
To offset some of the cost of purchasing Wagyu beef, Minhwa Spirits arranged a partnership with the metro Atlanta locations of Japanese barbecue restaurant Chubby Cattle BBQ. It allows Minhwa Spirits to purchase Wagyu beef at a lower price point through Chubby Cattle’s distributor.
“If you get chosen and join their rewards network… they let you sign up for their supply chain [for a set amount of items.] I think we’re one of the first few [local restaurants] to take advantage of that privilege,” Chung explained.
And because Minhwa Spirits produces its own alcohol, the beverage program yields higher margins, which helps further offset ingredient and labor costs.
“We are able to balance some of the higher costs on food and labor to try to hit our menu price targets,” said Chung.
Ingredient costs per item
- Beef patties, 2 × 4 ounces, $4
- Cheese, 2 slices, $0.50
- Tomato, 1 slice, $0.10
- 1 Bun, $0.67
- Marinade/sauces/pickle, $0.45
- 1 substantial slice of white onion, $0.05
- 1 leaf of lettuce, $0.08
- Fries, $0.65
The breakdown
- Ingredients: $6.40
- Staff and labor costs: $5.76
- Rent, rates and utilities: $1.62
- Other operating costs: $2.16
- Total cost to make: $15.94
- You pay: $18
- Remaining operating margin (profit): $2.06
Want us to break down the cost of your favorite local restaurant dish? Send an email to beth@roughdraftatlanta.com with your suggestions.
