Surviving the Corn & Grain Up Rise

Primavera Italian Restaurant & Bar
February 14, 2011
Certified Premium Beef
February 24, 2011

What will restaurants do to survive the corn and grain up rise?

With the rise in costs of corn, wheat and grains, our basic ingredients that fuel everything we eat, we will see higher prices that affect our bottom line.  These ingredients feed our animals, fuel our cars and will effect how much we spend to purchase them.  With beef prices on the rise due to the increase in feed costs and the auto industry allowing 20% ethanol at the pump (gasoline from corn), restaurants will be forced to spend more money on their basic ingredients. 

The United States has become addicted to corn syrup, and as a result you will find it as a basic ingredient in most processed foods.  The over 50% cost increase of corn from years past will impact our costs across the board.  Soda, Beef and processed foods are just some of the items that will see steady price increases. 

How will restaurants cope with these increases?  In my opinion they should increase menu prices to keep up with these rising costs.  If you do not keep up with this necessity you will find yourself left out in the cold when costs do not drop back down after their rise.  Your customers are paying higher prices at the grocery store and the pump, and know that there is bound to be a higher price for what they are eating.

If you look at the key items on your menu and start to increase prices in small increments, you will not need to do a big jump all at once.  Price increases seem to always be a bone of contention for restaurants but when you hear that the fast food empire is doing it, why wouldn’t you?

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