An Economist's Tips on Finding Good, Cheap Restaurants

Tyler Cowen is the not the first person I would think to consult about finding a great restaurant. He's  a professor of economics at George Mason University and author of New York Times best-selling e-book The Great Stagnation as well as writer of critically-acclaimed economics blog marginalrevolution.com. But his genuine love for food combined with his background in economics have made him an unlikely expert on the subject. He recently authored An Economist Gets Lunch: New Rules for Everyday Foodies which covers everything from how food in America became so bland and mass-produced (he blames prohibition, strict immigration laws, and kids!) to why Mexican food tastes different in Mexico and the US. His insights into how supply and demand, cross-subsidies, and technological advances influence food is fascinating. I picked up the book at my local New York Public Library to educate myself on the economics that drive food.
My favorite chapter by far was "The Rules for Finding a Good Place to Eat" which offers practical tips for finding good, cheap restaurants. Here are some highlights:

1. Eat at a restaurant on a side street: Restaurant owners, like the rest of us, have to pay rent. Rent along the long avenues, where there is heavy foot traffic compared to side streets is exorbitantly more expensive than on side streets. And that cost is factored into the price of each meal. A restaurant located on 5th Avenue and one just around the corner on say, 50th Street may have the same quality food but the one on 5th Avenue will have to priced their dish higher to accommodate the higher rent. Plus, chances are that if a restaurant is surviving on a side street without the business of the multitude of tourists who eat at places on main streets, it is probably pretty good!
2. Go where the booze is: Restaurants make a lot of money on alcohol. Beer can carry a mark up of up to 500%. This means that restaurants that serve a lot of alcohol can afford to spend more money on raw materials and skilled workers to prepare the food. Restaurants that don't offer alcohol or who cater to families who don't purchase as much alcohol, must turn a profit without the benefit of these high margins. So when perusing Yelp for a good sit-down spot, check out their drink menu too. Chance are if it is extensive and pricey, the food will be pretty good
3. Order the least appetizing thing on the menu: Chefs must cater to their customers. A restaurant will not survive if the customer does not get what they are looking for. Because of this, you'll never find a Thai restaurant that doesn't serve Pad Thai or a Mexican joint without tacos. That is what the customer demands. Those dishes are most likely very tasty but they're not necessarily the best option on the menu. Dishes that sound especially unappetizing are there for a reason: because the chef believes in them. 
4. Check out the customers: It's always a good sign if there are people dining in the restaurant who are of the same ethnicity as the cuisine. As previously stated, restaurants must please their customers in order to stay in business. Customers who are informed, who have a knowledge of what the food should taste like, force the chef to prepare food that is authentic. So the next time you're choosing between two Indian restaurants that are just blocks apart, take a head count of how many Indians you see in each restaurant and base your decision on that. They probably both offer the same dishes but the one with more natives probably prepare them a whole lot better.

I highly recommend picking up a copy of An Economist Gets Lunch. From reading it, I have gained a better understanding of where my food comes from, why it costs what it does, and how my food choices affect others. Being an educated consumer is one of the easiest ways to make smart and cost-effective decisions, so be sure to read up! And be sure to check out Tyler's food blog!