Inflation causes restaurant owner to charge nearly $16 for sandwich, calls jump in prices 'incredible'

 Inflation, which is a driving force behind many of the challenges facing businesses today, has led to rising costs leading to a restaurant owner charging approximately $16 for a BLT sandwich.

Brian Will, founder and CEO of Will Restaurants Investment Group, explained his monthly expenses during an appearance on "Varney & Company." When a friend asked him about the price of a $16 BLT sandwich.

The wholesale cost of the popular sandwich is only $5, according to Will, but due to the need to cover operating expenses the meal that was $12.99 three years ago is $15.99 today.

Will spends $20,000 per month to rent the space in which one of his restaurants is in a "new mixed-use development", arguing that it "costs too much" given the location.

"My utilities are $6,000 a month. My labor in December was $60,000, which means I got $86,000 of base costs the day I open the doors on January 1," Will explained.

"You figure out 32% food costs. My gross profit in that sandwich is $11. You divide all my costs by $11 of gross profit, and I have to sell 93,000 sandwiches before I can break even. Any money I can make,” he continued.

Will Restaurants Investment Group was established in 2010. The leading restaurant management company owns and operates brands such as Central City Tavern, The Tavern House, The Derby Sports Bar and Cantina Loca.

Will told Fox Business that he is "dealing with a different economy now" than when he first signed the lease for the eatery's space.

"We signed our lease before COVID with fixed increases every year. And I have a personal guarantee, so my rent is not going down. It's going up every year forever," he insisted.

Bill Pulte, CEO of Pulte Capital, argues that home prices will not drop much lower in the new year.

The commercial real estate industry is struggling with rising interest rates and the impact of remote work.

"My revenue per store has gone down by about $350,000, while my rent has gone up, labor has gone up 30%, insurance has gone up 40%, rent has gone up 10%," the restaurant owner insisted.

"It's unbelievable how much my costs have increased in the last three years."