Labor shortages are not the only headache facing restaurant business. Inflation is also driving up menu prices. In the United States, consumers who have to pay more for food and fuel are thinking about cutting back to make ends meet.
In the United States, prices in the restaurant trade haven't risen so much since 1981. According to figures from the US Bureau of Labor Statistics, the cost of a meal, a coffee at the counter or a sandwich rose by 6.8% last year. Fast food restaurants and other outlets that serve customers quickly, without necessarily seating them at a table, saw menus prices that were 8% higher. In February, eateries that serve their customers in a more conventional way showed a 7.5% increase in menu prices.
While restaurant owners must address the issue of labor shortages, they may also need to prepare for a potential drop in customers visiting their outlets. As menu prices rise, consumers are considering cutting back on dining out. According to a US study by the ICSC trade association, which represents shopping malls and other such complexes, nearly two-thirds of consumers say they would no longer go out to eat if their financial situation continues to deteriorate. Indeed, cost of food products increased by 7.9% in 2021.
Inflation is a real concern for half of the Americans surveyed, with 75% of them feeling the effect of rising fuel prices at the pump. Rising oil prices are also having an impact on home delivery services. With a shortage of delivery drivers, owners of these kinds of restaurants may have no choice but to raise the price of home delivery menus, reports industry website Restaurant Business.
