Food Inflation
 

We're starting to see inflation in basic food costs really take a bite out of our regular eating spots. At two places where we interact with the owner/operator, they've been apologetic about price increases.

Naturally, this seems worse for the cheaper places where they had smaller margins to begin with and can't absorb the price increases.

It mostly comes back to oil and I wonder how many restaurants are taking the double whammy of fewer customers and higher costs and then giving up the fight?

Rising food costs may have a positive impact in bringing down the portion sizes.

Comparison of todays portion sizes vs 20 years ago

http://www.divinecaroline.com/articl...tion-size--now

Things seem to get watered down rather than smaller, if that makes any sense. For example, the pizza slice is the same size, just with skimpier toppings. Or they replace quality ingredients with worse ones.

I'm not a regular soft drink consumer by US standards. When I like one, I usually like an 8oz bottle. Why does an 8 oz serving cost a lot more than a 12oz serving? And to really change directions, why can't we refill bottles?

Portions of the post that previously appeared in this space has been deleted. I would provide you with a reason why, but doing so would likely be against the TOS.

I have a couple of places I like to go with the family once a week to keep their economy going and for a break from home cooking, but I like eating at home myself.

Being in Texas, the land of trucks and long commutes, some people are getting massacred on their monthly fuel bill as well as their food bill. I know a guy whose monthly gasoline costs are so high that he should park the oversized diesel truck he's underneath on and buy a cheap economy car to drive just to get some cash flow back. $1000 a month on gasoline?

Dollar devaluation is what you see :)

can also depend on the particular ingredient
 

For instance, the California/Oregon summer salmon season was cancelled due to low salmon counts. I discovered at my local grocery store this morning that this has led to wild Alaskan salmon hitting $30.00 per pound, about double what it was a few weeks ago.

I haven't ordered salmon at a restaurant recently, but I'm sure it will hit those portion prices as well.

Bob

ate at daily grill last night, 3 of us, 3 apps , 1 entre and 1 dessert with soft drinks, $66 dollars. wow, its getting nuts out there. i think the prices are going up and portions are getting smaller

Interestingly enough, most convenience stores/gas stations in the US will sell you a cold soft drink for around 1.39$ for 20oz (600ml). Yet in the same store, you can buy a 2L bottle (not cold mind you) for 0.99$. Where's the logic?

Refillable bottles are quite "green" but it's a lot more effort + cost for the beverage companies.

JP

I'm sorry but thats a BS argument. People are responsible for controlling their own eating habits, and if they want to have big portions, and the weight gain that goes with it, then thats up to them. Not to mention that at least one of the photos on that link is photoshopped - the "bigger size" pizza slices are the SAME ones in the 20 years ago pic, but photoshopped to overlay each other and then enlarged.Look at the toppings on each pic, they are the SAME. I find it difficult to give any credit to anyone that can't use facts to prove their argument.

One thing that is absolutely having an impact is the quality of ingredients.When food prices soar, people tend to stop buying more nutritious foods that require prep (like fresh fruits and veggies) in favor of prepackaged commercial trans fat laden foods (like Hot Pockets) that are often cheaper. Obesity in lower income classes is certainly due to a mixture of factors (poor self control being one of them) but cost plays a large role. In order to make ends meet, many lower income households forgo expensive fresh foods in favor of frozen convenience foods, because for 100 dollars they can get enough fresh food to last 4 days or enough crap food to last a week and a half. When the budgets tight, what choice do they really have? It becomes a vicious cycle in a way because then they get accustomed to eating that way, and even if circumstances change, they still seek out junk because its comforting and familiar.

Sorry about the rant, but this subject is a pet peeve.

I fear making my kids nuts while trying to alert them to being cost conscious and health conscious. It is not easy to do both.

Here in Australia, we're seeing massive price inflation of groceries / food commodities(relative to the past decade).

It's not currency related, here.
The AUD$ hit a record high against the USD$ thanks to the resources boom re. China & India and the related commodities boom as richer developing nations move up the food chain.

I still blame a lot on the oil markets and companies.
-> Oil speculation driving up oil and transport prices (fuel is double the price of a decade ago)
-> Much higher transport costs for food as a result.

Much higher interest rates (thanks to the US credit crunch post subprime debacle) for business in Australia has probably forced some businesses to raise prices.

Overall, I've not noticed restaurant price rises here, so it might be a US-centric issue.
Are US farmers stil pushing for increased farm subsidies - even with food price inflation?

On a US level, could commodity price increases be due to the widespread practice of growing corn for ethanol be affecting food prices?

Don't forget about the impact of bio-fuels on the increase in food costs. With oil prices continuing to rise, the demand for bio-fuels is increasing rapidly and they compete for the same resources we use for food.

What I've seen reported in the Financial Times (best paper in the world:)) is that the bio-fuel issue is overblown. I believe it is raising costs slightly for corn, which is amplified for the very poorest among us in North America, but that it isn't sending it skyrocketing.

I'd like to know if this is the case.
It would seem to be the big difference in the US v other countries in relation to factors affecting food commodity prices.

How has ethanol farming impacted on supply of key food commodities, which could affect the food markets?

Though rising fuel prices affect the rich more in $ than the poor in the beginning, food inflation affects everyone and already has proven to be a major political issue around the world.

More so than the oil price, IMO.

Strictly on topic: What items have increased in price, in your day-to-day dining?
Nothing much, here (excluding grocery increases). :)