Resturant pricing up

Originally Posted by ARCOgraphite
With most restaurants closed, there should be plenty of meat products spoiling or aging somewhere.

...



The products are spoiling - the live animals are being euthanized and disposed of as the processing plants to butcher them are being closed or significantly slowed down due to the current pandemic.

As an example, a large hog processing facility in the state had roughly 1/3rd of its employees test positive for COVID-19. The plant in normal times processes 21,000 hogs a day. No, that is not a typo.

Shut the plant down, where do the finished hogs go in the meantime? They are taking up the space in the barn where the younger piglets would start filling. As the hogs get too big, they are no longer easy to process - these plants are designed for animals in a typical size range. The solution is to euthanize the older hogs, and dispose of them.

But divert the animals to a local butcher so they don't go to waste I hear. Sounds like a great idea, except butchers here are booked out to July at this point, and they don't have the capacity to pick up 20+ thousand hogs a day, multiplied by multiple plants...

Thus the current decreases in stock (much less is backfilling what we are using) and changes in pricing.

The same is happening in other meat lines - even Wendy's is running out of beef in some locations.

We've changed so much of our manufacturing and processing to be just in time and keyed in to certain supply lines. When things were setup for institutional delivery, suppliers can't turn on a dime and individually cut and pack to consumer level packing like that... A farmer I know only has packaging and equipment for potatoes for institutional and restaurant users - what home consumer wants 50 lb bags of potatoes?

Countless examples of this across the industry...
 
Simple for me. If the price is too high, I just don't buy.
 
TP here has been plentiful for about a month. Have seen some supply chain gaps in meat the past few weeks, but when shopping on Saturday everything was available... to overflowing.
I don't think consumer goods supply chains will stabilize for quite a while.
 
Originally Posted by Eddie
Tired of eating TV dinners at home I decided to go to APPLEBEES here is Cape Coral, FL. I googled the price of the 6 oz steak with two side and it was the same $9.99 as always. then I went to the APPLEBEES web site to order and found it had increased to $14.99. I declined to order and question what were they thinking when the gouge like this. Ed


The business model of Apple bees was cheap food however the add-ons like drinks, side and deserts bring in the money. $9.99 specials worked when world dined in.

The google may be have dated information on the special. Applebees pricing is what it is on site. That $5 "extra" I doubt they keeping afloat. The take out is paying some bills but not making anyone rich,
 
Originally Posted by Danno

I don't think consumer goods supply chains will stabilize for quite a while.


+1 It will take a while and many suppliers may shrivel in the interim.It takes time to restart and replace missing pieces in supply chain.
 
Originally Posted by Eddie
Tired of eating TV dinners at home I decided to go to APPLEBEES here is Cape Coral, FL. I googled the price of the 6 oz steak with two side and it was the same $9.99 as always. then I went to the APPLEBEES web site to order and found it had increased to $14.99. I declined to order and question what were they thinking when the gouge like this. Ed


The wholesale prices of all meats have skyrocketed. They sent out a letter stating to expect the availability to "become scarce". This started with beef and then moved over to poultry when demand shifted.

This is likely to move to produce as well partially due to demand and new protocols in picking and packing.

So, expect this to continue. I know just today I noticed 85/15 ground beef well over $5/lb at retail, but it was available.
 
Originally Posted by Eddie
Tired of eating TV dinners at home I decided to go to APPLEBEES here is Cape Coral, FL. I googled the price of the 6 oz steak with two side and it was the same $9.99 as always. then I went to the APPLEBEES web site to order and found it had increased to $14.99. I declined to order and question what were they thinking when the gouge like this. Ed


The one on Del Prado? Been there a bunch of times. So what happens a lot is Google will show an old menu where there pricing isn't updated. Same thing happens with some of the food delivery apps, especially when the restaurant in question does not sign up for the service, but the service adds them on their own.
 
Originally Posted by Eddie
Tired of eating TV dinners at home I decided to go to APPLEBEES here is Cape Coral, FL. I googled the price of the 6 oz steak with two side and it was the same $9.99 as always. then I went to the APPLEBEES web site to order and found it had increased to $14.99. I declined to order and question what were they thinking when the gouge like this. Ed

Every business is struggling with money right now.

I'd buy the $14.99 dinner if the quality was the same and I really liked the taste.
 
Originally Posted by SevenBizzos


The wholesale prices of all meats have skyrocketed. They sent out a letter stating to expect the availability to "become scarce". This started with beef and then moved over to poultry when demand shifted.

This is likely to move to produce as well partially due to demand and new protocols in picking and packing.

So, expect this to continue. I know just today I noticed 85/15 ground beef well over $5/lb at retail, but it was available.

Hamburger tubes are $4.29/lb at GFS right now. That's a little high for me so I won't be eating much hamburger until prices head back down. Chicken is still about regular price.
 
Originally Posted by Dwight_Frye
I have seen reports of restaurants adding a "Covid-19" surcharge onto the checks. This is a brainless idea and really irritates me. Just like when they added a minimum wage increase surcharge. Spelling out such charges smacks of making some kind of political statement.

If the restaurants need to make more profit to cover wage increases or supply increases, just raise the menu prices. Chances are that many people won't remember what the prices were last time, or if dining out is looking to be too expensive, will cut back on such activities.

When a burger, fries and a soft drink started to exceed $9.00 at many fast food restaurants due to having to pay unrealistic minimum wages, I severely curtailed buying fast food. Like from once a week to once every 6 months. Probably a healthier decision too.

What do you want to bet that a large majority of restaurants won't lower their prices once the supply prices return to normal ?



It's only political if you make it so. I don't even pay that much attention to the check, just pay what ever the total is. Some people want explanations. This is the same as the fuel surcharge for packages when the price of oil was up.

And yes, I think OP missed the fact that costs are up and fewer people are going out so it'd make sense if the prices went up. Part of profits is volume. Plus I guess maybe some staff are thinking they're risking their life for minimum wage to be on the front line so to speak and they didn't sign up for that. Probably why some places like grocery stores are paying extra and offering bonuses.

As for those that don't lower their prices. It's called competition, let's see how much business they get with the higher prices and everyone else lowering their prices.
 
Originally Posted by JHZR2
Ive not seen pricing increases around here, but the restaurants we patronize are not chains, and are byob restaurants generally, so probably had some pricing/profit margin built in from the start.

If meat processing is diminished, it's sensible that costs will rise. At the supermarket, there is an absence of deals in the meat department.



Great point ^^^^^

I'm lucky though... Seriously..

7 stores within 6 miles of me... And Harris Teeter had NY strip steaks in sale for $24 for 6 beautiful steaks... Not too shabby...

And... HT is now selling Prime graded ground beef... Yeah it's $5.99 a pound... But it makes AWESOME burgers and burger in pasta... Worth every penny
smile.gif
 
Originally Posted by Wolf359
Originally Posted by Dwight_Frye
I have seen reports of restaurants adding a "Covid-19" surcharge onto the checks. This is a brainless idea and really irritates me. Just like when they added a minimum wage increase surcharge. Spelling out such charges smacks of making some kind of political statement.

If the restaurants need to make more profit to cover wage increases or supply increases, just raise the menu prices. Chances are that many people won't remember what the prices were last time, or if dining out is looking to be too expensive, will cut back on such activities.

When a burger, fries and a soft drink started to exceed $9.00 at many fast food restaurants due to having to pay unrealistic minimum wages, I severely curtailed buying fast food. Like from once a week to once every 6 months. Probably a healthier decision too.

What do you want to bet that a large majority of restaurants won't lower their prices once the supply prices return to normal ?



It's only political if you make it so. I don't even pay that much attention to the check, just pay what ever the total is. Some people want explanations. This is the same as the fuel surcharge for packages when the price of oil was up.

And yes, I think OP missed the fact that costs are up and fewer people are going out so it'd make sense if the prices went up. Part of profits is volume. Plus I guess maybe some staff are thinking they're risking their life for minimum wage to be on the front line so to speak and they didn't sign up for that. Probably why some places like grocery stores are paying extra and offering bonuses.

As for those that don't lower their prices. It's called competition, let's see how much business they get with the higher prices and everyone else lowering their prices.




It IS a statement Wolf.... And that business person is making it.... Not smart in my opinion.

Though... I do have to say if people like the idea of paying people $15+ an hour... That cost is passed on to the customer.... Someone has to pay for it at the end if the day.

I rarely eat out in a restaurant... Because I can make doggone good food at home.

Though when I go out I do tip quite well... 30-50 percent on average... I appreciate people working and working hard in a restaurant.
 
Originally Posted by thooks
I started to say earlier that I was surprised there was an Applebee's still open and operating.


Me too,Applebee's is absolutely disgusting.
 
I think many restaurants and chains are getting that push over the cliff. Many operate on the brink on good days borrowing there way along.

Except about 25% less bars and restuarants places once this all settles out. I am just hopeful the local great ones survive it.
 
Originally Posted by aquariuscsm
Originally Posted by thooks
I started to say earlier that I was surprised there was an Applebee's still open and operating.


Me too,Applebee's is absolutely disgusting.


The chains are more likely to survive as they have easier access to capital, but I won't be surprised if some of them go under as some have loaded up on too much debt. All those local restaurants may go under as they still have overhead to pay such as rent that may not get discounted and they may never be able to make it up.
 
Friday I bought a HUGE beautiful marbled chuck roast for almost nothing at heb. Grabbed a bag of fresh carrots.some russets,and portobellos. Made a pot roast that melts in your mouth!

Then Sunday ate out at one of our favorite Chinese restaurants. Their prices have actually come down a few dollars. And they totally pile the food on your plate. Super friendly staff and the owners always come to our table and talk to us.
 
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