[sokoloff]

I’ve stopped going to several restaurants from which I used to pretty regularly order takeout (and post-vaccine, dine in) over their crazy price increases since spring.

It’s interesting to hear that this is driven by supply chain increases, but those seem much higher than what I see at my local grocer. Is there something particular to restaurant supply that makes it sticky enough to pay these doubled prices?

[_wp3r]

The timelines. These increases have been in place for months, and eventually restaurants have to increase prices. Especially around proteins and disposables (ie all take out stuff) right now. EX: Chicken wings and pork butts are probably being sold at a loss by most restaurants right now, unless they have tripled prices.

Secondly, restaurants usually purchase some portion of product as prepared or partially prepared which is being hit by the labor shortage for preparation cost in the production facilities.

Third, grocery increase are less noticeable due to the price point. Ten cents on a dollar is less noticeable than 1 dollar on 10 dollars.

[kcplate]

I’ve noticed pretty significant grocery increases over the last year. My wife and I basically eat a fixed menu day to day so the groceries we buy are usually exactly the same week over week. About a year ago we spent about $150/wk. Now it’s much closer to $200. Some of that is due to what we eat (keto/meat heavy) and that includes chicken wings (which are apparently in short supply) and pork butts. I’d bet we are looking at almost 40% above 2019 prices just on those two items alone.

[sokoloff]

We’re also seeing about 30-40% grocery increases overall from Feb 2020 to now. That’s high, but it’s nowhere near 100%.

If restaurants are seeing 100% ingredient increases, labor price increases, and labor shortages, I think we’re going to see a massive wave of restaurant bankruptcies in the next 18 months. There’s no way consumers are going to just swallow that.

[_wp3r]

Sorry for the late reply.

My 100% increase converts to 15-30% at the price point. In the same way you are seeing that 30-40 at the grocery. Restaurants generally run %20-40 food cost.