{"id":4057,"date":"2021-07-14T13:20:01","date_gmt":"2021-07-14T17:20:01","guid":{"rendered":"https:\/\/lgcassocprod.wpengine.com\/?p=4057"},"modified":"2025-04-22T10:03:31","modified_gmt":"2025-04-22T14:03:31","slug":"rising-food-costs","status":"publish","type":"post","link":"https:\/\/lgcassociates.com\/es\/rising-food-costs\/","title":{"rendered":"Rising Food Costs | Hospitality in the News"},"content":{"rendered":"

Every week we comb through the news to find employment trends affecting the hospitality\u00a0industry\u00a0so you don\u2019t have to. This week\u2019s topic:\u00a0rising\u00a0food costs.\u00a0<\/span>\u00a0<\/span><\/p>\n

In terms of challenges impacting the hospitality industry, staff shortages<\/a> have been dominating the news\u00a0the past several months.\u00a0But according to a\u00a0<\/span>recent study by Quadrant Strategies<\/span>,\u00a0there\u2019s a bigger concern on the forefront \u2013 rising food costs.\u00a0<\/span>\u00a0<\/span><\/p>\n

How will rising food costs impact your business?<\/strong><\/h5>\n

Quadrant Strategies study shows that\u00a0almost 50% of operators\u00a0cite the \u201cincreasing cost of goods\u201d\u00a0as the top concern\u00a0at their restaurant. And it\u2019s no wonder that\u00a0this is topping the list; rising food costs can\u00a0affect your bottom line and lead to a price increase on menu items.\u00a0During this\u00a0recovery period that the hospitality industry is currently in, neither of these\u00a0outcomes\u00a0are favorable.\u00a0<\/span>\u00a0<\/span><\/p>\n

There are several reasons restaurant operators are seeing\u00a0a rise in food costs.\u00a0Inflation rose more than 5% over 12 months (ending in May), which is the\u00a0biggest spike\u00a0we\u2019ve seen\u00a0since 2008\u00a0(via the\u00a0<\/span>Bureau of Labor Statistics<\/span><\/a>).\u00a0While experts hope this rise is temporary,\u00a0it’s not unusual to for costs to increase over time. But other issues, like\u00a0shipping and weather (think droughts or unusually high heat) are\u00a0an indication that the rise in food costs is long term and needs to be factored in when planning for the rest of 2021.\u00a0<\/span>\u00a0<\/span><\/p>\n

Some managers have chosen to combat the overwhelming employee shortage by increasing hourly pay or offering sign on bonuses.\u00a0Combined with\u00a0growing\u00a0food\u00a0costs, this can lead to a huge change in expenses for your business. Below we\u2019ve put together a few tips for restaurants who are dealing with an increase in food costs:\u00a0<\/span>\u00a0<\/span><\/p>\n