While inflation is finally cooling a little bit, nothing seems to stop the soaring food prices. Prices of margarine and butter in December 2022 increased 44% and 31%, respectively, from a year ago. Egg prices had even gone up by 60% ( Brooks, 2023 ) Inflation is just one factor driving up the food prices Inflation and the recent bird flu outbreak might have just created a perfect storm to jack up egg prices. Plus, it also happened that more states began transitioning to cage-free eggs around the same time. Effective in 2023, all eggs sold in California must be laid by hens living in cage-free or better conditions. Likewise, a similar bill is now under review by the Senate Agriculture Committee in New York. Leave the war in Ukraine aside; prices for eggs and other essential food items (e.g., baked goods) are unlikely to drop soon. Food banks are struggling As a result of soaring food prices, food banks only afford to buy fewer items with the funds they raise ( Yang, 2022 ).
Are you feeling hopeful for the new year? As many of us have left the pandemic behind in 2022 and begun traveling again, airlines have begun seeing profits. Some tourist destinations also recorded the highest-ever RevPAR (revenue per available room, a key hotel performance indicator). The foodservice industry is recovering too. According to National Restaurant Association ’s forecast in January 2022, the foodservice industry would make $898 billion in sales for the year, exceeding $864 billion in 2019. Entering 2023, will restaurant sales continue to grow? Or, will high inflation and uncertainty of the economic outlook negatively affect sales in the foodservice industry? Regardless of where we stand, the foodservice industry must overcome many big operational challenges to thrive in 2023. To start off, let’s visit food and labor costs, the two costliest items on the balance sheet. Food prices are unlikely to fall General inflation is easing, but not for most essenti