Most interesting. A related insight: people will often not think much about what they pay in a social context, but be brutally penny-wise in non-social contexts.
This explains why restaurants can have huge margins, but coffee shops rarely do. It's normal to see people working alone at a coffee shop for hours after paying $1.99 for a coffee. Such behavior is uncommon in a restaurant -- the common script is to go out with friends or on dates to eat socially. A restaurant can charge more for ambience and service. $$$$ coffee shops on yelp are at the level of Starbucks.
This explains why restaurants can have huge margins, but coffee shops rarely do. It's normal to see people working alone at a coffee shop for hours after paying $1.99 for a coffee. Such behavior is uncommon in a restaurant -- the common script is to go out with friends or on dates to eat socially. A restaurant can charge more for ambience and service. $$$$ coffee shops on yelp are at the level of Starbucks.