>I often feel cheated by these restaurants, in the drinks. While I don't consume alcoholic beverages, the same 1/3-liter (1-3 quart) Coca Cola (for example) that costs Bs. 1 (ca. 1/8 US$) in a one place, will cost Bs. 5, or even more, in a more expensive restaurant. Since they just serve it, pressumably at least 80% of this is (gross) profit.
>
>>Trader Joe’s stores have a wine called “Charles Shaw”. When introduced in California, it created a bit of a stir, as its price is $1.99. The affectionate name of this beverage is "Two Buck Chuck". Some people love it and others hate it. In blind tests it has beaten out wines in the $40 to $50 range. I have no idea how the blind tests were conducted but I think I can tell a “good” wine from a “not so good” wine. Well, I would like to think so.
>>
>>We were recently at a nice restaurant and saw Charles Shaw on the wine list. This must give it legitimacy, as the price was $17.99. I am sure any wine that costs $1.99 at the store tastes even better at $17.99. The price speaks for itself.

But then you're expected to add about 15% for the tip. Tip on $2 wine isn't worth waiter's walking.

IOW, it's not that they're making profit on the price difference, they're also underpaying their staff, and can do so because tips are institutionalized.