Food Inflation
#1
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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?
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?
#2


Join Date: Dec 2001
Location: SNA, LAX
Programs: AA EXP
Posts: 1,294
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
Comparison of todays portion sizes vs 20 years ago
http://www.divinecaroline.com/articl...tion-size--now
#3
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Posts: 6,188
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
Comparison of todays portion sizes vs 20 years ago
http://www.divinecaroline.com/articl...tion-size--now
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?
#5
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I eat at restaurants only about once every three to four months (with a $20 to $25 maximum, for two patrons), unless I'm on vacation. I can't justify the high prices for the lousy service, also-ran food, questionable portions, dubious preparation techniques, annoying tablemates, and the tipping inflation pressure. I much prefer to just cook everything at home. Much easier, cleaner, safer, quieter, and enjoyable.
That all said, food costs overall are rising. I seriously wonder how minimum wager earners (and those getting paid close to minimum wage) are surviving.
That all said, food costs overall are rising. I seriously wonder how minimum wager earners (and those getting paid close to minimum wage) are surviving.
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?
#7


Join Date: Oct 1999
Location: Woodside, CA, USA
Programs: United Platinum
Posts: 530
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
I haven't ordered salmon at a restaurant recently, but I'm sure it will hit those portion prices as well.
Bob
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?
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?
#8




Join Date: Sep 2006
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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
#9


Join Date: Jul 2007
Location: Homebase: CAE - Formerly, YUL
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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$. Where's the logic?
Refillable bottles are quite "green" but it's a lot more effort + cost for the beverage companies.
JP
Refillable bottles are quite "green" but it's a lot more effort + cost for the beverage companies.
JP
#10
Join Date: Apr 2008
Location: EWR
Programs: CO
Posts: 162
Rising food costs may have a positive impact in bringing down the portion sizes.
Comparison of todays portion sizes vs 20 years ago
http://www.divinecaroline.com/articl...tion-size--now
Comparison of todays portion sizes vs 20 years ago
http://www.divinecaroline.com/articl...tion-size--now
One thing that is absolutely having an impact is the quality of ingredients.When food prices soar, people tend to stop buying more nutritious foods that require prep (like fresh fruits and veggies) in favor of prepackaged commercial trans fat laden foods (like Hot Pockets) that are often cheaper. Obesity in lower income classes is certainly due to a mixture of factors (poor self control being one of them) but cost plays a large role. In order to make ends meet, many lower income households forgo expensive fresh foods in favor of frozen convenience foods, because for 100 dollars they can get enough fresh food to last 4 days or enough crap food to last a week and a half. When the budgets tight, what choice do they really have? It becomes a vicious cycle in a way because then they get accustomed to eating that way, and even if circumstances change, they still seek out junk because its comforting and familiar.
Sorry about the rant, but this subject is a pet peeve.
#11
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Join Date: Nov 2007
Posts: 6,188
Interestingly enough, most convenience stores/gas stations in the US will sell you a cold soft drink for around 1.39$ for 20oz (600ml). Yet in the same store, you can buy a 2L bottle (not cold mind you) for 0.99$. Where's the logic?
Refillable bottles are quite "green" but it's a lot more effort + cost for the beverage companies.
JP
Refillable bottles are quite "green" but it's a lot more effort + cost for the beverage companies.
JP
#12
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Join Date: Jul 2005
Location: Sydney - Australia
Programs: BD, QF, QR/EY/GF & HH Gold/SPG, Hertz#1G
Posts: 11,079
Here in Australia, we're seeing massive price inflation of groceries / food commodities(relative to the past decade).
It's not currency related, here.
The AUD$ 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?
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?
#13




Join Date: Feb 2006
Location: rural Indiana - IND
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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.
#14
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Posts: 6,188
) 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.
#15
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Location: Sydney - Australia
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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).

