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The chef talks about their battle with inflation
It’s not just food costs. In recent months, fuel costs have skyrocketed, reaching record levels in the United States and abroad, causing many food suppliers to add surcharges to restaurant delivery bills, charging extra for each delivery. Energy costs in the United States, which include fuel, are up an astounding 32 percent from a year ago.
US President Biden has sought to pay at least part of the blame for the war in Ukraine, issuing a statement on the state of inflation that said, in part, “…Today’s inflation report is a reminder that Americans’ budgets are being drained by rising prices and families are beginning to feel the effects of the price hikes it has raised.” Putin.”
Restaurants are feeling the heat, even as they work to prevent rising costs from affecting their diners’ experiences. The timing couldn’t be worse – the higher prices come just as life begins to offer some semblance of normality before the pandemic.
“We are very affected by the inflation due to the increase in utility prices, salaries and ingredients,” says chef Eric Rieber and co-owner of Le Bernardin in New York, a three-star Michelin restaurant. In one case, a case of 100 lemons priced at $37 in October 2021 now costs $137. He says many other popular commodities have seen massive increases.
Ripert has made some adjustments to its prices, but the restaurant is absorbing a lot of the increased costs. “Guests didn’t feel the changes,” he says. “We have not let inflation affect the Le Bernardin experience for our clients.”
Indeed, he adds, taking shortcuts and lowering standards would be a huge mistake. “There is nothing worse than disappointing a customer.”
Maintaining customer satisfaction can be more difficult, when a restaurant relies heavily on a single ingredient. The US Department of Agriculture expects wholesale beef prices – what restaurants pay – to rise between 4 and 7 percent this year. It is clear that most customers arrive at Harris’s expecting a high quality steak.
Chef Buhagiar raised prices slightly — “a few dollars per steak,” he says — but not enough to offset the growing loss the business is facing due to inflation. Mostly, diners didn’t notice, he says, or if they did, they wouldn’t complain.
A report by Yelp earlier this year found that references to inflation-related terms on the review site rose at the end of 2021 after a steady rise since 2015. Meanwhile, searches for higher-priced companies rose, indicating that an increase The prices may not be enough to deter our eating out habits. In fact, according to the National Restaurant Association, half of American restaurant customers surveyed at the end of 2021 said they wanted to eat more out, a data point that was up significantly from the pre-pandemic period of 2019.
It may be too early to know what restaurants should expect in the short term; Circumstances change quickly and we are not yet in the middle of the year. Recent reports from Bloomberg have said that its economists have estimated that US households will have to spend an additional $5,200 this year — more than $400 a month — on the same food and retail items. However, economists said US households have amassed more than $2 trillion in savings during the pandemic and are likely to lose only a quarter of it to inflation.
The CEO of Beef ‘O’ Brady’s, a restaurant chain in Southeast America, outlined the challenges facing Bloomberg. “People are looking for deals,” he said. “They get hit everywhere, at the gas station, at the grocery store.” The restaurant recently replaced its surf and turf platter with a more economical fish and chips platter.
In fact, shortlists have become a hallmark of the past few years as a way to combat challenges from the supply chain to staff shortages. Data from BentoBox, a restaurant ordering and technology company, found that 75 percent of its restaurant partners streamlined menu items in 2021 due to supply chain issues and inflation.
Restaurants have reported other cost-cutting measures mostly outside of customer perspectives: choosing less expensive toilet paper for the toilet, recruiting existing staff to help with dining room improvements like paint and other small repairs, and providing specialty condiments by ordering only rather than leaving them on the table. They say every little change helps.
Some restaurants may avoid the swipe simply because of their special nature. At Rustic Canyon in Los Angeles, Executive Chef Andy Dubrava says rising costs haven’t affected the business significantly.
“I think it has a lot to do with sourcing locally, but we are also very spontaneous with our menu. We may not notice a change in price if we only use a product for a short time,” he says, although he acknowledges that he will inevitably need to raise the prices of staples like bread and olives. slightly to account for the effects of inflation.
But Doubrava remains committed to providing the best possible experience, no matter what economic forces it plays. “All we can do is keep an eye on our costs, serve up great food, and provide some comfort and a momentary escape from reality to our guests,” he said.
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