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?
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.
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.
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.