Inflation is hitting the restaurant industry; USDA increases price forecast for several items
The restaurant industry is taking a big hit because of inflation.
A new survey shows 54 percent of consumers are dining out less because of high prices. The ones who still go out say they are choosing less expensive places and cheaper items. Restaurant traffic was down 11 percent this April compared to pre-pandemic numbers, but food delivery meals were up nine percent. Interestingly though, cost is not the number one factor in choosing whether to go out to eat or where to go, it is food quality.
The new retail price forecasts for beef, pork, poultry, and eggs are out and once again, they are going up. USDA Economist Matt MacLachlan explains just how much.
“For beef and veal, projected to increase 6-7%, similarly pork 6-7%. Poultry prices have climbed 8.5-9.5% and eggs were most significant increase between 19.5 and 20.5% in 2022.”
He says the change in estimate comes from volatile situations like Avian Influenza, the war in Ukraine, and ongoing supply chain issues.