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The June 1940 photograph along Hwy 1 in Maryland had $0.05 hotdogs ($1.17) and $0.10 burgers ($2.34).
The Feb 1959 photograph from the NYC diner advertises a $0.45 burger ($5.14) and probably a $0.75 steak sandwich ($8.57)
Where is the discrepancy? I've never really trusted these "adjusted for inflation" type numbers. I'm not an economist so I have no idea how they are calculated, but they've always just felt off to me. Usually, the numbers are for something esoteric to me, but these are about something I have some familiarity. In my experience, the adjusted burger price is about half the actual cost of today.
If you narrow down to Food for all Urban Consumers[1], it shifts to more like $5.24. If you look at "Food away from home in New York-Newark-Jersey City, NY-NJ-PA, urban wage earners and clerical workers, not seasonally adjusted" that number moves to $7.60. Which confirms your intuition: restaurant prices are way higher than the overall inflation rate predicts.
How do we explain the difference? A variety of ways. Maybe the burgers you get are "better" in some way. Bigger. Better cut of meat. More veggies and toppings. I wasn't around in 1959 and never ate at that specific diner, but it's a real possibility. In fact, this is explicitly called out in the FAQ[3]:
> Specifically, in constructing the "headline" CPI-U and CPI-W, the BLS is not assuming that consumers substitute hamburgers for steak. Substitution is only assumed to occur within basic CPI index categories, such as among types of ground beef in Chicago. Hamburger and steak are in different CPI item categories, so no substitution between them is built into the CPI-U or CPI-W.
There's also some other complicating factors to account for, like coupons and bundling. Like consider Applebee's Really Big Meal Deal deal. "NEW Big Bangin’ Burger with unlimited fries & soda, still just $9.99" Or you can order just the burger for... $15.99[4]. I don't even know how BLS copes with that and am sorta guessing they just take the a la carte prices for consistency, even though that likely overstates price levels consumers actually pay?
[1]: https://data.bls.gov/dataViewer/view;jsessionid=3A241A4C4F0A... [2]: CWURS12ASEFV [3]: https://www.bls.gov/cpi/factsheets/common-misconceptions-abo... [4]: https://www.applebees.com/en/menu/handcrafted-burgers/big-ba...
Food appears somewhat cheaper, housing much cheaper; but clothing and tools/appliances were much more expensive. Things like student debt and healthcare costs are also interesting to compare and wildly differ over time & place.
Also common for the average middle class person to spend a sizable percentage of their income on travel/vacation today; as I understand it that was quite uncommon before the mid 20th century.
Price of good i x Quantity of good i. Quantity is fixed year to year. So a loaf of bread, a gallon of milk, a TV, etc.
Sum those up across a reasonably representative basket, then compare that sum to the same quantity and new prices in a future year.
sum(P_i_new year x Q_i) / sum(P_i base year x Q_i) - 1 --> change in CPI
Hamburgers might be more expensive, but TVs, toilet paper, and dog kibble might not be.
I’ve read of political influence on the market basket to lower the reported rate of inflation by the incumbent party, but I’m not educated enough on the topic to give an opinion on if it happens.
Restaurant economics are a function of ingredient costs and labour. I suspect ingredient costs are close to OP's estimated multiples. But real wages are way up since the 1950s. Anything with a large labour component of costs will have tended to rise faster than inflation, which is an average of goods and services.
(There are specialised metrics if you actually wanted to dig into this question.)
What a specific purchase costs is highly dependant on the inputs, the cost of its labour (which might grow faster or slower than the average wage), and a lot of other factors.
Food is way more expensive today than it was 50 years ago. Airplane tickets are way cheaper. Everyone has a cellphone now, and middle class families have multiple cars, but a trip to the doctor will mean that ~15% of the population will be on the verge of not paying their bills. On the other hand, I have access to ~every major piece of music ever made for ~$15/month, so that's something.
https://www.tastingtable.com/1203923/best-diners-in-new-jers...
If you have a classic diner in your town, take your foreign guests there for the experience.
> https://maps.app.goo.gl/NCiZgiRjGckp6Jzn6
And if that doesn't appeal, there's another one: https://maps.app.goo.gl/e3ZWtXWEKPvDnded8
Something you've got to realize is that this form of culture is something that has gone far beyond America's borders. To the European, it is the very pinnacle of "American Food" -- and 50s/60s themed diners are all over the place.
From Belgrade, Serbia: https://share.google/qGq9vC7tKgf0ISyLz
To out-of-the-way towns in Austria: https://maps.app.goo.gl/bzHfTAobTRkHpvAN9
Germany's chock full of them. (The Germans are also more obsessed with "Cowboys and Indians" and Western US culture than any nation I've ever seen.)
France has multiple "American Diner" chains e.g.: https://www.happydaysdiner.com/
I'd hazard that there are nearly as many of these restaurants outside the US as there are inside of it. Within the US it's "throwback/nostalgia." Outside the US it's "exotic/kitsch."
Maybe your Finnish friend was remarking that the American version somehow felt more "real"? I don't know... I've been to all sorts, and the ones in Europe are truly very similar.
Vegas has an eiffel tower too...
Diners are something else. In Germany we have "American diners" where you pay for each cup of coffee.
It's not the same.
https://www.eddierockets.ie
I thought that the "Elvis Diner" was practically a meme in the UK, actually. Hah.
What do they serve?
That place was great cheap food.
I tried their liver and onions (an aquired taste it turns out I don't really have) and a slice of some meregiune pie and idk, it really transported me, the food is always very real tasting, it's hard to isolate what it is that makes so much food taste manufactured now.
It's like Donns Depot, places that connect us to some wholesome parts in our shared history.
Leftovers for a later meal. Unless there is something about work involved and not having a place to put the leftovers in the fridge.
It made me lament the lack of old school diners where I live. Sometimes you just need a perfectly cooked breakfast and some solid coffee!
How can I get away from all this? Is there a town somewhere where everyone is over 45 and there is no cell service and a full meal is $5?
Heck I would settle for a small NorCal town that doesn't have gangs or meth.
There's also the "Denny's" problem. Classic diners tend to be pretty much the same as a Denny's in terms of quality.
But if you go to somewhere deeply rural you can still find cheap crappy diner food.
Only in the southern US unfortunately
Article would do well to mention that this particular style comes from cars manufactured by Budd Company, who developed the necessary process of welding the stainless steel, first seen on Burlington's “Zephyr”:
- https://en.wikipedia.org/wiki/Shot_welding
- https://en.wikipedia.org/wiki/Pioneer_Zephyr
just looking at the video makes me hungry.
https://www.osf.com/
My intellectual curiosity was gratified, hence I think it's good.
You can't arrive with your group of six friends and "join tables" so everybody can seat together. What Americans have against a big group of friends?