INFLATION
T
he rate of infl ation has surged around the world, primarily in the US, China and Germany. In the US alone, consumer prices rose 6.2% in October – the highest since 1990. In China, infl ation rose 1.5% in the fall, while German infl ation was 4.5% in October compared to 4.1% in September. According to China’s National Bureau of Statistics, the Producer Price Index jumped 13.5% in October from a year ago. Also, that month, amid global supply chain shortages, China’s Consumer Price Index rose 1.5%, which is twice the rate of the previous month and the highest increase since September 2020. The United Nations Food and Agriculture Organization (FAO) has reported that global food prices have hit the highest level in over a decade. Prices have risen more than 30% in the last year, and this includes rising costs of cereals (22%) and vegetable oils globally. The price of wheat is up almost 40%. Supply chain issues are even impacting dairy products, with prices for those rising by almost 16% in the last year, according to FAO. Experts blame rising costs for
items like vegetables, gas and meat as contributing to the rise in consumer infl ation around the globe. According to the US Bureau of Labor Statistics, the index for meats, poultry, fi sh and eggs increased 11.9% in October in the US, with the index for beef rising 20.1% and the index for pork rising 14.1%, its largest 12-month increase since December 1990. Even the index for food away from home rose 5.3% over the last year. The index for limited-service meals rose 7.1% over the last 12 months, and the index for full- service meals rose 5.9%, both the
largest 12-month increases in 31 years. The index for food at employee sites and schools declined sharply over the past year, falling 45.4%. “Infl ation is about money supply outpacing production,” says Matthew Mabel, president of Surrender, Inc., a restaurant consultancy. “So far, infl ation is actually working in favor [of restaurants and operators] because there is elasticity of demand when menu prices go up. The guest who is currently engaged shows little resistance. Per person averages (PPAs) are universally at an all-time high.” However, Mabel adds: “Guest counts are underperforming compared to the past, so my clients and I are starting to focus on that.” When it comes to supply chain issues – one of the root causes of rising infl ation – Mabel believes these are temporary and he expects to see a return of production as well as a moderation in pricing next year, but not a full return to historical pricing. “My recommendation to my clients is to remind them that there is only one person who pays for anything in a restaurant and that is a guest,” he says.
Labor issues continue to be a
challenge for the food industry, but there is an end in sight. “Workforce and labor costs are in a state of permanent change,” he says. “It is getting to the point where there is little value in comparing labor cost from the past, only hours. We are in a period of adjustment, dealing with an issue that we will learn to conquer, like we always do, as an industry. My clients and I focus on strengthening education and training, so we take lowered hiring standards and still get the productivity, result and retention that is necessary.”
21
WORLDWIDE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132
