The video addresses a common consumer complaint about pricing in a relatable way, using a specific food example and offering a nuanced perspective that acknowledges both customer and business owner viewpoints. The creator's background as a chartered accountant lends credibility to her financial explanations.
Summary
The creator discusses the perception that African restaurants in the diaspora are overpriced. She explains that while some restaurants may overcharge, the higher prices can be attributed to factors like economies of scale, rent, utilities, and wages, which are often higher for businesses serving smaller customer bases. She suggests that to increase their customer base, African restaurants need to consider competitive pricing and marketing strategies to attract a wider audience.
Structure
1Introduction of the topic: African restaurants are perceived as greedy due to high prices.
2Comparison of chicken prices between Chinese and African restaurants.
3Explanation of economic factors influencing pricing (rent, customer base, economies of scale).
4Discussion of overhead costs beyond ingredients (utilities, insurance, wages).
5Critique of simply looking at ingredient cost vs. selling price.
6Call to action for African restaurants to consider pricing and marketing to attract more customers.
On-screen text
Most African Restaurants
In The Diaspora Are Greedy
Original caption
What actually bothers me, is the customer service because it doesn’t match the prices being charged. I don’t know why most of us think when you’re providing a service or selling something you are doing the customers a favour. I don’t know where that mentality came from. #AfricanFood
More from @yvonneonscreen
More breakout videos from this creator.
Transcript
Listen. I saw a video of someone saying that. I've seen so many comments asking why African food is so expensive. The answer is greed. The same three pieces of chicken you will get in a Chinese restaurant for 4 pounds is the same piece you will get in an African restaurant for 7 pounds. Now, while I might agree a bit with the exorbitant prices, I also understand the African restaurant owners' perspective. And before you jump me, let me explain. Hi, my name is Yvonne. I'm a chartered accountant who works in the UK and I love talking about money and investments. For the purposes of this video, I'm going to use the piece of chicken example. Rice, not fried rice, not fried rice. Forget about importation for a second. Let's look at economies of scale and consumer behavior. First of all, if you have a cost base, a Chinese restaurant has a rent of 1000 pounds. An African restaurant right next to it also has rent of 1000 pounds. Between me and you, we would go to a Chinese restaurant to buy chicken. How many times do other races go to African restaurants to buy food from them? The number of people who go to Chinese way more than the number of people who go to an African restaurant. Therefore, when it comes to economies of scale, which is the spreading of costs, let's say 1000 people go to Chinese restaurants a month, and 200 people go to the African restaurant. Is who is making a loss here? If they are both charging 4 pounds. Also, the flip side, right? If you are going to charge 7 pounds to someone right next to you is charging 4 pounds. You are pricing yourself out of the market. But this is really a sticky situation because personally, I've heard people from other races say, let's do Chinese tonight. Or let's do Indian tonight. Never. Let's do African or Jollof tonight. So the number of people who go into African restaurants are way less. What I think is happening is restaurant owners considering this in their pricing. That's how come the prices are quite high. So they can cover the cost. And when we talk about cost, it's not just the cost of the ingredients that is being used for the food, okay? You have to look at overhead costs as well, like rent, your electricity, insurance, wages, a lot of things. So I saw someone just looking at the cost of the ingredients and saying that, oh, one, if you're preparing one plate of Jollof is 5 pounds, why is it selling it for 12 pounds? That's like more than two times the cost of the price. You are making 100% profit. That's not how it works, guys. And like I said, yes, some restaurants take this overprice foods. Long, making arguments, nuances that we have to consider and not just look at it as face value. Real. Should do. How do we increase our customer base? Remember, we Africans are ethnic minorities, so if we want to increase our customer base and be at par with other restaurants or other fast food restaurants, and we have to try and go into other races. And getting other your food purely price. You cannot throw all your money into marketing and try and convince people from other races to come and try your food. Understand? So the conversation is good, but that is that. There are things that we are missing out and taking out just to fit the narrative that African restaurant owners are all greedy. Not all of them, please. And let me ask you, what do you think about this pricing discourse going around? I saw watching to be 18 pounds. Let's chat in the comments. Also, don't forget companies like Uber Eats, Deliveroo just eat whatever. They add some form of percentage to the price. I've said it here before. Yeah, let's chat in the comments. And don't forget to follow me for more content like this. What about this discourse around? Time. I saw watching to be almost 18 pounds. Let's chat in the comments. Also, don't forget companies like Uber Eats, Deliveroo just eat whatever. They add some form of percentage to the price. I've said it here before. Yeah, let's chat in the comments. And don't forget to follow me for more content like this.
