Both, restaurant and at home food prices are up 25% since the beginning of COVID 2020. The article discusses the impact of a 25% increase in food and restaurant prices on consumers, particularly those with lower incomes. This significant rise in prices, resulting in meals that were once $10.00 now costing $12.50, has broader implications beyond just low-income diners. Labor costs have also increased by 25%, further adding to the financial strain on restaurants. The article highlights the adverse effects of inflation on various economic sectors, emphasizing the need to look beyond surface-level indicators like GDP to understand the true impact on different segments of the population.
Drawing parallels to historical inflation periods, overlooking the challenges faced by low-income consumers and the potential consequences of prioritizing profits over customer satisfaction is risky for restaurants. Fast-food companies, for example, are adjusting their strategies to focus on maintaining sales through price increases rather than prioritizing customer volume. However, this short-term approach may not be sustainable in the long run, as competitors could undercut prices to attract customers, leading to a potential collapse of the profit-driven model. It will be important for restaurants to consider the broader implications of inflation and the need for a more holistic approach to economic decision-making. Are we on the brink of a recession?
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25% Food And Dining Inflation Indicates Recession (forbes.com)
About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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