Survey: 92% Of Restaurant Chains To Raise Menu Prices In 2014
February 2014 - Food
According to a report from supply chain co-op SpenDifference LLC, the majority (92%) of restaurant chains said they plan to increase prices in 2014, an increase from the four fifths (83%) who said they increased prices in 2013.
The findings suggest that this year’s increases are expected to average 1.8%, compared with 1.65% in 2013. The 48 chains who responded to the survey said they expect food costs to rise 1.7% on average.
To counter rising food costs, two-thirds of respondents said they are renegotiating contracts with suppliers, more than half said they are promoting items with lower food costs and developing limited-time offers with less expensive ingredients.
Maryanne Rose, SpenDifference’s Chief Executive, said:
“Operators are mimicking what is happening with inflation… Their menu price hikes are only covering their increased food costs without taking into account potentially higher health care and labour costs.”
“This survey shows they are using price to cover higher costs while finding other ways to better manage their margins.”
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