JDA’s Peakhurst Inn has been in damage control over the menu price of its top-shelf steak, with media and punters outraged at the cost for a pub meal in a challenging economic climate.
Around 25 kilometres south-west of the Sydney CBD, the Peakhurst is a large venue that’s built a reputation around its restaurant, particularly the grill menu.
At the top of the food chain is the chef’s prime cut special, offering a high-quality 350-gram Scotch Fillet, rated 4+ for marbling, served with buttery mash, roasted vegetables and Cafe de Paris butter – for $90.
Recently, a bemused customer took to Reddit, venting to @r/foodies readers about what they saw as an “insane” price, suggesting the suburban pub was going “beyond taking the piss”.
While many piled on in agreement, there were some that recognised the demand of such a dish, noting points such as that “It wouldn’t be on the menu if it wasn’t selling”.
Flowing on from the interest rate bubble and post-pandemic supply chain stresses, business costs in hospitality have grown rapidly in recent times, presenting operators with a financial decision of whether or not to raise prices to cover diminishing trade.
A recent report from CreditorWatch revealed that close to one in ten foodservice businesses have closed in the past 12 months, largely due to rising costs, including rent, labour and produce.
Contacted for comment, a spokesperson for the Feros family, who have owned and operated the hotel for years, explained that a lot of patrons come to the Peakhurst to celebrate occasions, and the premium options are an important part of the offering.
“Our steaks are a real point of difference, and something customers consistently ask for.
“That’s why we introduced the ‘Prime Cut’ steak on our Chef’s Specials menu, to provide a more elevated option for those looking for something a bit special.”
Ranging the upmarket cuts requires the kitchen to buy from high-end suppliers, such as Little Joe’s, a small farm that provides the Scotch Fillet and has won numerous awards, for producing some of the best beef in the world.
Beyond the raw ingredients, like all operations the pub must consider the complete cost of goods, which includes all overheads, and it uses a formula based on the necessary gross profit (GP) margin for all prices.
“There are several factors that influence our overall menu pricing: rising energy costs, wages, interest rates and the cost of premium ingredients all play a role. We believe in being transparent about that.”
But also “very conscious” of maintaining balance across the menu, the kitchen also provides four other steak options, sized at 200-300 grams, starting at $35 and averaging around $45.
On the basis that no business can survive selling products below cost, the Peakhurst suggests some of the recent online commentary may have missed the broader context.
“It’s important to consider the full menu, the quality of ingredients, and the overall experience we’re offering.”
