Prices in American restaurants have risen sharply: what is the reason
Restaurant prices are rising faster than in recent decades as labor and ingredients become more expensive. Writes about it Business Insider.
Prices for meals outside the home rose 0,8% from June to July this year, according to new data from the Bureau of Labor Statistics. Prices have not risen as sharply in years - the last time they reached this level was in February 1981.
Prices seem to be rising faster lately. From April to May they increased by 0,6%, and from May to June - by 0,7%. Restaurant prices rose more than the full consumer price index, which rose 0,5% in July. Prices for the year are also up 4,6% year-on-year, according to BLS data compared to July 2020.
Menus at Chipotle, McDonald's and other chains reflect price increases. According to a Gordon Haskett Research Advisors analysis, the largest price increases in the 24 restaurants they surveyed were 10% at Taco Bell, 8% at McDonald's and 8% at Dunkin ', followed by Chipotle and The Cheesecake Factory. The exact prices depend on the market. Applebee's, Papa John's, Red Robin and a few others have not raised their prices over the past year.
In June, Chipotle raised the prices of its menu by about 4%, which the company said was driven by higher wages for workers.
Analysts at Gordon Haskett believe almost all fast food and fast food chains are likely to follow.
Labor costs are partly responsible for the rise in prices. A shortage of truck drivers makes transportation more costly, while restaurants, grocery stores and factories struggle to stay fully stocked. Processors and farms face the same challenges. For example, poultry farms do not have enough employees, so it is difficult for them to quickly process poultry.
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Restaurant labor costs have increased over the past year, but ingredient prices have also increased. Chipotle's staple products such as corn and avocado have risen in price this year due to rising demand and delivery delays.
Experts say the rise in food prices is a combination of growing demand as consumers increase spending and struggle with the supply chain. Delivery delays and inclement weather have made essential items more expensive and more difficult to obtain.
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