As inflation rises across all links of the supply chain, restaurants are challenged to contend with ever-rising costs for ingredients and supplies.
By the Numbers
Research from PYMNTS’ study PYMNTS study “Main Street Health Q3 2022: SMBs Battle Inflation,” which draws from a July survey of 533 U.S. businesses, finds that the clear majority, 62%, of businesses in the hotels, restaurants and entertainment sector have experienced rising costs from suppliers.
Get the study: Main Street Health Q3 2022: SMBs Battle Inflation
What They’re Doing About it
While 56% of these businesses reported that they have raised consumer prices in response, they nonetheless appear to be absorbing much of this inflation in an effort to keep customers coming back.
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In fact, findings from August’s Consumer Price Index for All Urban Consumers (CPI-U), reported by the U.S. Bureau of Labor Statistics (BLS) Tuesday (Sept. 13), revealed that food prices overall increased 11.4% year over year, while restaurant prices rose only 8%, indicating that restaurants are taking the hit for their customers. In contrast, grocery prices rose 13.5% in the same period.
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