Inflation threat looms over food, restaurant industry
COLUMBIA, Mo. (KMIZ)
The COVID-19 pandemic appears to be receding in Missouri but the threat of inflation is still hurting businesses nationwide.
A jump in gasoline and food prices has put many restaurants in a predicament. Missouri's gas prices are averaging anywhere between $3.74 for regular gas and $4.30 for premium gas. Diesel has the highest recorded average price, sitting at $3.95. That's almost a dollar more than it was in 2008, according to AAA.
"It has been hard for me, I get a lot of my supplies from St. Louis, Kansas City all the way to Chicago", said Dimetrious Woods, the owner of Munchi's Fish and Chicken
Food prices are also increasing -- especially meat.
Woods says he plans on taking the blow of inflation and doesn't anticipate raising prices for his costumers.
According to the USDA, food price increases are expected to be above the increases in both 2020 and 2021. In 2022, grocery store and supermarket prices are predicted to increase between 3% and 4%. Food purchased from restaurants is predicted to increase between 5.5% and 6.5%.
The USDA reports that price increases are going to hurt food purchased at restaurants the most. It's expected to exceed historical averages and the inflation rate in 2021.
Farm cattle prices are also predicted to increase between 12.5 and 15.5% in 2022. Wholesale beef prices are predicted to increase between 4% and 7% this year.
As a result, some restaurants are raising their menu prices, according to CNN.
Current prices at Arthur Bryant's Barbeque in Kansas City are $21.95 for a pound of brisket, $17 for a burnt ends sandwich, and $18 for a brisket sandwich.
This has caused Arthur Bryant's to nearly double its prices in the past year.
Woods says at his restaurant the price to purchase meat for food has nearly doubled, but he doesn't anticipate this change will hurt his costumers.
"To pass that on to the consumer would be totally unrealistic so it is a hard offset but for me that's when the challenge comes in, the entrepreneur. How do you make work in the unworkable? And that's the life of an entrepreneur", said Woods.
And while inflation continues to hurt Woods, he says the best way he's supporting his costumers is by keeping most of his prices the same.
"Because we have a community based business so we understand our costumers, we understand real life and everybody's going through it and wonderfully it seems to be working out", said Woods.
Check back and watch ABC 17 News at 6 for more on this developing story.
