Skip to comments.Economy: The rising cost of eating
Posted on 11/03/2011 8:26:01 PM PDT by DeaconBenjamin
A surge in food prices this year is impacting local grocery stores and restaurants, which in turn affects the people buying food from these places.
But in many cases, owners of eateries and shopping venues say they have little choice but to raise prices to keep up with costs.
Oh yeah, prices have gone up like crazy, said Mike Hetelekides, owner of The Villager Restaurant and Diner in Canandaigua. We cant keep up.
The U.S. Agriculture Department said last week that it expects retail food prices to increase 3.5 percent to 4.5 percent this year, after climbing just 0.8 percent in 2010.
Jo Natale, the director of media relations at Wegmans, said a couple factors have led to the increase.
Higher commodity costs, higher energy costs and a greater demand for food globally has contributed to driving food costs up, said Natale. Cost increases are pretty consistent across the board.
She said that specific commodity costs that have increased include wheat, corn, soy and anything that feeds on those three foods. Transportation costs are also up, she added, which factors into the pricing.
For restaurants, there are other things to consider, aside from just the price of the food specifically.
Hetelekides said his establishment changed its menus and prices just over a year ago, and as a result, hasnt raised the prices again to keep up with the more recent inflating food costs. Thats mostly because it would cost too much to change the menus, he said.
But with the steady rise in flour, bread, meat and especially coffee prices, he fears theyll have to change those menus sooner, rather than later.
Theres nothing else you can do, he said. Its easier for distributors to raise prices, but restaurants have to deal with customers.
Some customers may still go to their favorite spots even with a slight increase in cost.
We changed prices (over a year ago) because of the economy, but it didnt take that much of a toll on our business, said Helen Hendershot, a waitress at The Villager in Canandaigua. We still have our regulars.
Hetelekides said a majority of customers will understand why restaurants need to adjust pricing.
Most people understand, he said. Theyll see the changes for themselves at the supermarket.
However, some supermarkets like Wegmans have taken measures to combat those changes.
We committed in February to keeping prices of 40 items frozen, and to keep those prizes frozen through 2011, Natale said referring to everyday items like bananas, ground beef, baby-cut carrots and some coffee products. Spread out through different categories, flavors and varieties, this impacted about 200 products, she said.
Natale said she didnt know where the prices on those products would stand after 2011.
Beyond that, we do our best to consider prices for customers, she said. We check competitors prices regularly as well.
The food chain, from farmers on down to the grocery store/restaurant is quite energy intensive. As oil prices climb, food has to climb with it.
Drill baby drill!
More “hope and change” setting in. Fundamental Transformation can be a real biatch when your going from capitalism to communism.
some restaurants give discounts.
From what I hear anything related to corn will see skyrocketing prices after the New Year because of ethanol mandates.
Some don’t change the menu, they change the portion sizes.
I don’t care. I can afford it. Michael Moore /s
Couldn’t have anything to do with FSMA signed obamunism in Jan 11 could it?
What's the question?
For most people considered middle class (low bracket white collar or blue collar), their disposable income has slipped by about 20%. Yet the ones who voted for Obama still support him.
The list, ping
Let me know if you would like to be on or off the ping list
oh that crazy Glenn Beck...
of course, how many times does he have to be right before they stop calling him crazy? oh yea, never happen. he’s not a progressive so he must be slammed at every turn
how about we take a page from Reagan’s playbook... not Ron, Nancy... and tell these ass hats in washdc ‘no!’... we won’t continue playing your suicidal socialist games
just say no ... to progressives and progressive ideology
Rush yesterday talked about the dramatic increase in peanut butter. Planters (Kraft) going up 40%. Jif (Smuckers) going up 30%. Peter Pan (Con Agra) going up 20%. Don’t know what Skippy is doing.
And less we forget our devalued Dollar...
Food Safety Modernization Act.
Own stock in Monsanto or Bayer? You will do well.
The rest of us will literally be eating “crap”.
Two other problems besides oil prices have added to the rise of food prices. The disasters in the Midwest and subsidizing corn to be used as fuel have not helped. We import too much of our food and the dollar is sinking thanks to the commies in power.
The food prices are OUT OF CONTROL!
If there was a Republican in the White House this would be FRONT PAGE NEWS. Day in and day out we’d be reminded that prices for a loaf of bread, a pound of butter, and pound of coffee have basically doubled in the past year.
Peanut butter is about to go through the roof folks, as the crop has been basically destroyed by the heat wave down south all year.
I feel like the world is on the brink of collapse.
“I feel like the world is on the brink of collapse.”
Keep calm and carry on.