Restaurants struggle with inflation; new data shows food prices continue to rise

Eggs from $18 a case, to suddenly $37 a case in a week, are among the price increases facing some Twin Cities restaurants.

“Every week there’s just a new price jump – as a business right after Covid – we’re just trying to watch the numbers,” said Luke Derheim, co-owner and COO at Craft & Crew Hospitality, a group of six restaurants. .

New data from the US Bureau of Labor Statistics released on Friday showed the price of full-service meals has risen 9% over the past year.

With sharp increases in meat, poultry, fish up more than 14% with supply chain and gasoline prices affecting the industry.

“We know our customers have a threshold — people won’t be willing to spend that much money on a burger,” Derheim said.

This left Derheim trying to find other ways to cut costs without passing the costs on to the customer.

In Saint-Paul, on avenue de Côme, you will find the Finnish bistro, with customers seated on their terrace.

“Prices have gone up and that makes me uncomfortable,” said owner Sandra Weise. “I don’t know what the end of the game will be, it’s unbelievable for me.”

Weise thinks about every one of her customers who walk into her restaurant when they try to set a menu because the prices she pays for ingredients have gone up.

“You’re disappointing people with the supply issues and the price, it’s a tough situation,” Weise said.

Federal data revealed that prices for food eaten away from home increased (all types of dining experiences) by 7.4% over the past year, the largest 12-month change since the period ending in November 1981.

“We often see in downturns people continue to want to have food away from home, but they can also trade off against what they’re using – instead of a fancier, they can go somewhere less fancy,” said Steven Carvell, a finance professor at Cornell University in New York. Carvell said large restaurant chains will now be better able to control prices, due to long-term contracts with suppliers, but continued inflation will eventually affect them.

“They’re much more immune to that process — not completely of course, eventually it will trickle down to them as well,” Carvell said.

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