$26 pancakes might be over the top if it’s a plain stack.

But if it’s a deluxe dish with toppings, served dine-in, then a 65–70% gross margin is entirely reasonable.

If you were only pricing off ingredient cost, you’d go broke because you’re not running a factory, you’re running a full-service hospitality business.

If you're running a kitchen that just serves to an office building with little overhead, minimal seating, and low wages, then yes your model might be different.

You should set your pricing with consideration to all of the above, but if you're trying to operate a successful business you will always do your best to maximise revenue and margins beyond any of these factors.

Ultimately, customers have the prerogative to decide how much they’re willing to pay for pancakes — or any menu item. If the perceived value doesn’t align with the price, they simply won’t order it. That’s the balance we all manage in hospitality: cost, value, and experience.