Diners can expect menu substitutions, higher prices in restaurants as food costs rise
KPMG Chief Economist Constance Hunter, Heritage Capital Chairman Paul Schatz and David Nicholas of Nicholas Wealth Management on the latest figures for the Consumer Price Index, Inflation, Federal Reserve and Markets current.
Diners may see menu substitutions as inflation continues to push up food prices, industry experts anticipate.
Meat prices continue to rise with the price of beef and veal up 3.3% from April 2020, according to data released by the Bureau of Economic Analysis. Pork prices also climbed 2.6% in April and increased 4.8% from April 2020. Poultry prices also rose about 1% in April.
Diners may see menu substitutions as inflation continues to push up food prices, industry experts anticipate. (iStock)
“Right now you’re looking at big increases in the cost of feed – a case of chicken was $ 40, now it’s about $ 130 per case. Prices increase by around 1.5% or 2% per month. You will start to see the dullness of the food [on menus as a way for restaurants] to try to stay ahead of this inflation, ”Ed Rensi, former CEO of McDonald’s USA, told FOX Business on Thursday.
Data from the U.S. Department of Labor’s Consumer Price Index released Thursday shows that product prices rose 5% from a year earlier, the largest increase since the 5.3% rise in August 2008 before the financial crisis.
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Restaurant owners are particularly feeling the heat as their food costs continue to rise, especially after the hack of JBS Foods, which is expected to temporarily halt around 20% of beef production in the country, a representative from the country told FOX. International Union of United Food and Commercial Workers. Business. The price hikes were also a result of supply chain safeguards that occurred earlier in the pandemic, making it difficult for companies to obtain supplies, food and other materials.
“We see beef prices skyrocket because the grains are more expensive, but also because the JBS attack which is one of the biggest suppliers of meat. We see the meat go up, we see just about everything fit, ”Tom Colicchio, said the chef and owner of Crafted Hospitality on“ Maria Bartiromo’s Wall Street ”.
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Colicchio said many small farmers his hotel group works with have not planted enough crops this year with uncertainty over whether or not restaurants will open after the pandemic.
“We are seeing the workforce increase, so we will pass these costs on,” he said.
Paul Best of FOX Business contributed to this report