“They haven’t gone up. They’ve almost doubled,” said Nick Rando, owner of an Italian restaurant in Natick, Massachusetts. Rando said that in January, red meat and steak cost him $7.35 a pound. “Last week, it was $13.20 a pound.”
People in Massachusetts have been complaining about the rising costs of other food products like produce, meat and prepared foods. But this phenomenon isn’t just happening in one state. According to the National Bureau of Labor Statistics, the price of cereal and bakery items have risen by five percent. Fruit and vegetable prices have risen by one percent and dairy products are up by 0.6 percent.
Restaurant owners like Rando buy their products in bulk, and they can see the rising costs when everything is added up. “You see it at the register, but when you’re buying like 300 pounds a week and all, then it starts to hurt,” said Rando. (Related: Food prices skyrocketing on soaring agriculture futures as prices for lumber, gas and other commodities climb amid lingering pandemic.)
o avoid operating at a loss, Rando has had to raise the prices on his restaurant’s menu. This is something that’s happening at restaurants all over the country.
Chipotle Mexican Grill recently raised its prices by as much as four percent across the menu to help offset rising food and labor costs. The restaurant chain recently hiked the hourly pay for its workers up to $15 an hour.
“There are some inflation pressures that we’re all feeling, the whole industry is feeling, even outside our industry is feeling – right now it’s labor,” said Chipotle Chief Financial Officer Jack Hartung. “If you lose the staffing game in this business, it’s not going to end well.”
Other nationwide restaurant chains have also shown their willingness to increase menu prices. McDonald’s CEO Chris Kempczinski said he was willing to cover the rise in labor costs with “judicious pricing on the menu.” McDonald’s recently raised hourly wages at company-owned stores by 10 percent.
Other restaurant chains like KFC and Wendy’s are rolling back their discounted combo and value meal options. Instead, these chains are promoting their costlier menu items to boost sales and offset the increasing cost of food and labor.
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