Small Silver Lining in Clouds for Restaurants?
While all of the economic turmoil is whirling around the media, Wall Street and political forums, there is something happening in the background that may be a silver lining for the restaurant industry. If you look closely in the crevices of the commodities there are some interesting price fluctuations going on with food and wholesale pricing. The perfect storm of terrible operating conditions for restaurants may be losing part of its bluster.
As customers are changing their eating habits and surpluses develop, processors find themselves with more supply than demand. Within the last 30 days here are some notable changes:
- Gasoline prices have come down from $4 a gallon to the mid $2 levels. Don’t pay those “fuel surcharges” any longer.
- Eggs have dropped to about $1.25 a dozen from their almost $2 per dozen cost a couple of months ago. Dairy items will follow.
- Even a lobster glut has caused fresh lobster prices lower than we have seen them in four years. Can other high end seafood be far behind?
- Meats are edging downward and I wouldn’t be surprised if our normal year end beef increases to fizzle out this year. People are replacing beef with other proteins.
- Pork has remained relatively stable.
About the only major food item as of this writing that seems to be holding the high price levels is wheat.
Those restaurants that made menu adjustments to counter the pressures of rapid inflationary food costs may be rewarded with additional profits while the industry adjusts to more stable conditions.
Restaurant management needs to make sure wholesalers are passing the savings along to the foodservice operator. Many may try to hold onto those savings to pad their bottom line. Be vigilant and watch the markets. Your invoices should reflect the trends.
This small little glimmer of silver will not cover up the dark clouds surrounding the fact that people are eating at casual restaurants less and the white table cloth operations serving $15 hamburgers may be forced to continue looking for ways to get big bucks from the consumer’s pocket.
Now if we can get a sustained stock market rally and housing sales moving again, maybe we can all go back to more work and less worry!
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