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Inflation’s Toll On The Food World
Gas prices are spiking above $4 a gallon. An iced green tea lemonade at Starbucks is now nearly $4. Hershey warns that prices are going up, from chocolate to snacks..
All over the country, restaurants are erasing prices on menu boards and chalking in new ones. Margins that seemed livable before the pandemic are now razor thin. Apologies abound, as places give into the unavoidable.
Inflation is dealing a blow to the food industry, just when states were lifting mask mandates and people were streaming into offices again.
Of course, anyone who has spent any time in the business world has dealt with inflation. Throughout the late 1970s, inflation ratcheted up to a peak of 14 percent in 1980. But, it gradually came down to a rate of 3.5 percent by the end of that decade.
In 2008, the year I bought my Toyota Prius, the price of a gallon of unleaded gasoline hit an average of $4.11 nationwide. That would be $5.35 when adjusted for inflation. So, last week’s price of $4.16 was a record only in raw numbers, not in real dollars.
Of course, our gasoline prices are lower in comparison to the average of $5-plus that consumers pay in London, Paris, Lisbon and Frankfurt. However, we may get there soon — especially at big city gas stations that always charge a premium for convenience.
Higher gasoline prices affect the food world in many ways, such as higher transportation costs for the ingredients they bring in; higher expenses for employees; more-expensive costs for food delivery; and of course, a higher toll for customers driving to dine or collect carryout.
Prices at limited service restaurants, i.e. fast food and fast casual, rose eight percent in February, while full-service restaurants reported a 7.5 percent increase in menu prices, Restaurant Business reported. Overall, prices for food purchased away from home have increased 6.8 percent in the past year, the biggest annual jump ever.
In the past two years, restaurants have already found ways to become leaner to withstand the impact of the pandemic. Now, the answer is not only to cut. It’s to charge more.
Communicating with customers
I spotted a series of social media posts in recent days from places alerting customers that prices were going up.
“We have tried to sustain from raising prices but unfortunately the cost of raw product is increasing drastically, as well as an increase in rent,” wrote Exotic Cuisine & Bakeries, a small Ann Arbor carryout spot, in a Facebook post.
“We will be raising prices this week, otherwise we will have to close our doors. We appreciate any and all of the support we have received and hopefully will continue to receive. Thank you all for understanding and sticking by us through these difficult times.”
However, a survey released last week by the International Council of Shopping Centers (ICSC) found 64 percent of respondents said they would cut back on restaurant spending if prices go up any further.
About 50 percent of those who took part said inflation was now their main economic worry, and 39 percent said their economic situation had worsened because of rising prices.
Tips on setting prices
Industry trade publications are now offering tips to restaurant proprietors on deciding when and how to raise prices. Some of the advice seems like Small Business 101, but the process could be enlightening for outsiders who don’t realize how prices are set.
What does it cost to make an item? That equation includes raw ingredient prices as well as the labor needed to produce it.
What are other people charging for this? If the going rate for a six ounce burger and fries in your town is $12 and you feel you need to charge $20, you’ll need to make a good case to customers why it costs so much more.
What feedback are you getting on service? If customers seem content when they dine, and are leaving good-sized tips, you may get less resistance to price hikes than if complaints are constant.
Increases can be accepted more easily if restaurant owners use strategies to implement them, rather than simply impose them. For instance, introduce a new item as a special, perhaps at a dollar or two more than you might ordinarily price it.
If the dish proves popular with customers, you can add it to your menu, without anyone questioning why the price has gone up.
However, don’t tap an existing menu item as a special, discount it by a couple of dollars, and then raise the price once it goes back to every day status. If customers see that they can get a fish sandwich on Monday for $10 rather than the $12 they’d normally pay, they’ll only order it on Mondays.
Another, time-honored tradition is to change the physical menu. You can redesign its appearance, arrange existing items into fresh categories, and delete dishes that are consistent money losers. Apps like Toast allow restaurants to constantly update. But experts say it’s safer to do this sparingly to avoid jarring your regulars. Do either food, or drinks, not both at once.
Especially in these sensitive times, with health concerns still lingering, you want to avoid giving anyone a chance to avoid dining out. I admit to choosing a different spot if the dish I’m set on eating isn’t there when I check that day’s menu online.
Inflation is a challenge for everyone. It’s also an opportunity to make changes, and hone in on the places and experiences most important to us.
The Big Cookbook Of Spring, 2022
During the pandemic, J. Kenji Lopez-Alt has seen his stature soar. He’s a YouTube star with serious chops. Many cookbook readers raved about his book, The Food Lab, and his darling children’s book, Every Night Is Pizza Night, won even more fans (it was a CulinaryWoman giveaway).
Now, Kenji has published the big cookbook of the spring — and I mean, big. The Wok clocks in at 672 pages and 4.7 pounds, filled with recipes for using a tool that is essential in Asian cuisine.
While woks have been deployed in Pacific Rim countries for centuries, many Americans only began learning how to use them at home in the late 20th century. My mother went through a wok phase, basically using her pan for stir fries, but never truly explored its potential.
Those starter dishes are included in Kenji’s book, but the recipes go well beyond cut up vegetables, meat or tofu. He has sections on rice, noodles, frying, simmering and braising, and also looks at simple sides that don’t require cooking, which can accompany wok-prepared meals.
Even if you don’t own a wok, or don’t plan to get yours out of the cupboard, I definitely recommend sitting down and reading this book as a culinary encyclopedia. You’ll learn about the history of dishes, the best ingredients to use, and get inspiration for meals that can be cooked quickly.
The Wok would make a great graduation present for an adventurous college cook, as well as a useful shower or wedding gift. Most of all, The Wok is a journey that expands the way many people think about woks, and one worth taking.
The Breakfast Queen At The Takeout
Ina Pinkney’s restaurant, Ina’s, was a home away from home for many Chicagoans before she closed its doors back in 2014. Now, Ina herself has a new home, at The Takeout.
Last week, Ina launched a new video series called Would Ina Eat That? Her first video looks at her decision to give up dairy during the pandemic, and her search for an alternative milk.
“The worst part of it was that I couldn’t make a latte,” Ina says. She bought every kind of milk, and couldn’t find anything that matched what she used to get from whole milk.
Her videos aren’t sponsored, so you can trust her recommendations. I’m looking forward to more of her tips.
What I’m Up To
St. Patrick’s Day is coming up on Thursday, and I wrote for The Takeout about an interesting recipe from Irish cooking icon Darina Allen. It’s for Irish Soda Pizza, which uses a base borrowed from Irish Soda Bread for pizza dough.
The recipe comes from Darina’s book, One Pot Feeds All. Her latest cookbook, Forgotten Skills of Cooking, has just been published in the United States. Its 700 recipes (!) are terrific teaching tools for novice or experienced cooks.
When visitors come to town, I love taking them to Dearborn, Mich., which has one of the liveliest food scenes in the Midwest. You may know that Dearborn has one of the latgest populations of Arab-Americans in the U.S., and now their political power is growing.
I wrote for the Washington Post about Dearborn’s recently elected mayor, Abdullah Hammoud, who previously was a member of the Michigan House of Representatives. The story includes insights from Ali Bazzy, owner of AB’s Amazing Ribs and Sauces, who you met in an earlier edition of the newsletter.
Elsewhere, I was delighted to be interviewed by my longtime friend Dave LewAllen, an anchor at WXYZ-TV in Detroit, about my Zingerman’s book. It also was the subject of an interview with April Baer on Michigan Radio. Thanks for your interest!
Keeping Up With CulinaryWoman
Tuesday marks the 40th anniversary of Zingerman’s Deli, and I’ll be taking part at a program with co-founders Ari Weinzweig and Paul Saginaw, and Deli managing partner Grace Singleton. There are still a few tickets left if you are in Ann Arbor and would like to join us.
As I mentioned last week, for every book that I sell on Bookshop.org, I am donating to World Central Kitchen. Bookshop distributes sales to independent booksellers, and I get a commission on each one. Right now, I’d like to do as much as I can to help Ukraine.
I’m also taking part in an auction called Book Aid For Ukraine. Authors, literary agents and others around the world are donating books, consultations and other items to support Ukraine. My package includes a signed book and a one-hour Zoom to talk about food writing. Please consider bidding if that sounds appealing. The window is open through March 21.
My book events are listed on my website. You can reach me at culinarywoman @ gmail dot com. Feel free to get in touch to schedule interviews or book events. I’m @michelinemaynard on Instagram and @culinarywoman on Twitter and Tik Tok.
It seems like Covid cases are beginning to moderate, and many places are lifting their mask requirements. Do what seems safest for you, and please look after yourself. See you next week!
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