Deliciousness to Cost Index

It has been a while since I posted last, and I suppose that may be the result of my laziness or just inability to sit down for a long enough period to write something. Since my last post, which was very early on in December, (and here we are already at the start of February), I have traveled to New York and Washington, DC. Both trips were phenomenal and I enjoyed my experiences there and the people with whom I shared it.

Either way, the reason I share that information regarding my trips is while I was in New York, a really interesting thought occurred to me and some of the people I was with. To give context to what I'm about to share with you, it's incredibly important to understand that New York's cost of living is astronomical. According to InfoPlease.com, the cost of living index for New York (Manhattan) was 212.1 in 2005. The next closest was San Francisco at 177. This should provide some sort of measure as to how unbelievably absurd it is to live a daily life in New York.

However, people still live in Manhattan and love the place. They say, "Who cares if it's really absurdly overpriced, this is the greatest place in the world to be." And you know what, I agree with them. New York is a fantastic city. Each street, each alleyway, each little neighborhood has its own unique feel, and there are so many of them that you may be able to spend a lifetime exploring this tiny island. After spending just a short time there, I can understand the allure.

Yet, there has got to be some way to objectively judge quality. Due to the fact that all goods and services are inflated in price, one may not recognize a good deal when he or she first sees it.

In order to combat this discrepancy, it is a must to create the Deliciousness to Cost Index. I attribute the name of this index to a fellow I met while in New York. We were walking around and thinking about places where we could eat. He suggested that we go to a place called Mamoun's Falafel, which he posited had the highest deliciousness to cost index in all of New York City.

Obviously, it is hard to verify his claim that Mamoun's has the highest deliciousness to cost index, considering that there are over 16,700 restaurants in Manhattan (which equals one restaurant a day for 46 years apparently). However, the food was definitely delicious, and it did not cost a bundle of money. Two critical factors in determining the index.

I suppose I've provided an example in which the Deliciousness to Cost Index may come into effect, but I haven't really provided any means through which one calculates this value. I provide the analyses here.

• Deliciousness to Cost Index

In order to arrive at the most sophisticated and accurate portrayal of the Deliciousness to Cost Index, I consulted with an acturial scientist at the University of Michigan - Ann Arbor. My conversation with him relating to the index was arduous and lengthy but our result is flawless.

The determination of the Deliciousness to Cost Index is based on the following equation:

1. Record the value (in Dollars) of the good (or service if edible)
2. Determine the amount of value (in Dollars) you feel that good (or service if edible) was actually worth
3. Divide the number from process 1 by the number from process 2
4. The quotient of process 1 divided by process 2 is the Deliciousness to Cost Index

As you can see, the process by which one arrives at the Deliciousness to Cost Index (DCI) is rather simple, yet it represents something very meaningful to the individual. In order to illustrate this point, I can provide an example.

Johnny is in Manhattan and enters into a restaurant called The Smith. While in The Smith, Johnny decides to order an Ahi Tuna Salad. This dish includes: mesclun greens, french beans, black olives, cherry tomatoes, and roasted peppers (according to The Smith). According to The Smith's online menu, the Ahi Tuna Salad costs $17. Johnny eats his meal and is pleasantly surprised by the rich taste, smooth texture, and is filled with content by his last bite. As a result, Johnny leaves The Smith happy and thinks that he would have easily paid $25 for such an experience. Therefore, The Smith would have a DCI rating of 1.47 ($25/$17).

Very simple measure, but it expresses how the individual feels about their purchase. It would be ideal to always have a DCI above 1.00. That would mean that the food, and its respective deliciousness, is consistenly beyond your expectations based on the price point originally given.

I think that a tool like the DCI could be enormously valuable to restaurants, bakeries, or any establishment that sells goods for consumption at a price. By getting an average of the DCI for consumers of a particular establishment, owners can determine at what price the public values their goods. If a restaurant sees that their DCI is on average 1.50, or consistently above 1.00, they may want to consider raising prices to that price point, because they are exceeding their consumers expectations.

A DCI of less than 1.00 is cause for concern, however. This means that people are consistenly unsatisfied with what they are eating. This can be counteracted by lowering prices of the goods being sold or by improving the quality (aka deliciousness) of the good.

• Conclusion

In this blog post, I propose the Deliciousness to Cost Index (DCI). The method to arrive at the DCI is to take the actual value of a good and divide it by an individual's perceived value of the good. Though the arithmetic is simple, it conveys an enormous amount of information that can be used effectively by owners of restaurants and other establishments that provide goods for consumption at a price. This is only truly achieved when the DCI is found on average amongst most or all consumers.

The next time you walk out of a restaurant, calculate your own DCI. You may be surprised.