Stats Suggest Restaurant Industry Bears the Brunt of Rising Food Inflation
Research by Power EPOS reveals a sharp divide in the inflation of food products versus the rates in the restaurant industry.
While food prices have surged markedly over the past year, data shows that the increase in restaurant and cafe prices has seen a comparatively moderate increase. Food and non-alcoholic beverage inflation, which peaked at 19.2% in March 2023, exceeds inflation in restaurants and cafes by 78%*.
The data shows a marked rise in the inflation rate for Food and Non-Alcoholic Beverages, which peaked at 19.2% between July 2022 and July 2023. At the same time, restaurant and cafe inflation averaged only 10% across the same time period.
This suggests that dining establishments are absorbing a substantial portion of the rising food costs rather than passing them on to consumers.
“Dining establishments have had many difficult choices to make,” says Richard Goodall, MD of Power EPOS. “With suppliers raising their prices, they themselves are faced with the option of hiking their prices and alienating their customers, many of whom are struggling themselves with less disposable income, or absorbing the cost themselves.”
“The data underscores the resilience and commitment of the restaurant industry, even in the face of mounting challenges. While food inflation surges, these businesses are doing their best to shield customers from drastic price hikes.”
As the industry navigates through these turbulent times, it’s imperative to highlight the crucial role that restaurants play in cushioning inflationary impacts. For small businesses that are most heavily impacted, support from customers and communities is paramount.
*On average, from time period July 2022 to July 2023.
