Michael Lukianoff’s Post

Is #Malta out of EU for pizza? #Maltaway #inflation #pizza #internationaladvisory Here you get a #pizzanapoletana for around 10eur 🍕Pizza prices: inflation at 5.9% 💰In December 2023, the price of store-bought pizza and quiche in the EU was, on average, 5.9% higher than in December 2022. In December 2022, the price was 15.9% higher than in December 2021. 🍕📈Highest increases in December 2023 in: 🇭🇺Hungary (+13.4%) 🇱🇺Luxembourg (+11.3%) 🇱🇻Latvia (+10.6%). Only decrease in 🇳🇱the Netherlands (-0.9%) What about your country❓👉 https://europa.eu/!K946c8 #NationalPizzaDay #PizzaDay

The Daily Mail published an article on menu price inflation 📈 over the weekend, showing a 30% increase on many highstreet brands. And as not many restaurants 🍽️ are posting record profits , what has been going on? 🤷♂️ CPI inflation for the period in question is up around 20%, but that is not a true representation of costs for a hospitality business. Energy is obviously a big impact, with many businesses seeing energy costs more than double (and lots still stuck in high energy contracts for many more months). Wage inflation has also been huge - the National living wage has moved from £8.21 in 2020 to £11.44 come April (39% increase). And food costs 🍔 are up 25% - 35%. So it's no wonder the menu prices have moved as well. But you can't get away from the fact that going out feels more expensive now than it did a year or two ago 💸. And that will impact consumer behaviour. We will see menu price increases slow in 2024 and potentially reverse in the casual dining sector where customer attraction / retention is going to be challenging. https://lnkd.in/eiGerEbZ

Inflation may be easing, but restaurant owners are still grappling with high prices. Despite the decline in inflation rates, local venues are charging more. For example, a simple cup of coffee now costs $6.50 in the CBD, up from $4 recently. Local venue owners express frustration over the ongoing need to keep prices high. Rising leasing costs, coupled with interest rate hikes, have squeezed already narrow profit margins. Despite efforts to absorb these increases, businesses find themselves gradually passing on expenses to customers. The impact of rising raw material costs is also significant. Beer kegs have surged from $300 to $400, and essentials like fruits, vegetables, and meat have seen substantial price hikes. These mounting expenses compel businesses to carefully adjust their pricing strategies to remain viable. The challenge is balancing affordability for customers while ensuring business sustainability. Regular price adjustments are crucial for covering operational costs and maintaining quality. However, merely passing these costs onto consumers risks alienating price-sensitive patrons and potentially decreasing foot traffic and revenue. Ultimately, this situation highlights the complexities businesses face in setting menu prices. Value-based pricing can help address these complexities. 

I saw this post by Joe McFarlane, whom I have never met but immediately liked when I read his post at the bottom. First my own view: I was debating with my friends yesterday about the state of the economy and how things do not make sense. This example of food below is precisely what I am talking about. Below are a few stats, which you can validate for yourself (Fed, Fannie Mae, etc), that outlines how serious of a negative financial state we are in: First, the Buy Now Pay Later (BNPL) industry 1-As of fall 2023, about 9% of consumers used BNPL, which is a 40% increase from two years earlier. 2-In 2024, BNPL is expected to drive up to $84.8 billion in consumer spending, which is about 13% more than 2023. Between January and April 2024, BNPL platforms were used for a record $25.9 billion in e-commerce spending, which is an 11.8% increase from the previous year. BNPL funding for groceries also increased by 40% between early 2023 and 2024. (Dan Note: Groceries!!!!!!!!! 40% more people buy basics to live daily through BNPL. People can not afford their basics in life) 3-The US BNPL market size was valued at $3.55 billion in 2024 and is projected to reach $25.30 billion by 2033. Now combine that data with how well we are saving in the USA (Hint: Not well) 1-The personal saving rate in the United States has been decreasing in recent years, and as of February 2024, it was at its lowest level in over a year. The personal saving rate is the percentage of personal income that American households save after taxes and expenses, and is tracked monthly by the Bureau of Economic Analysis. In February 2024, Americans saved 3.6% of their disposable personal income, which is down from 5.3% a decade ago and below the average before the COVID-19 pandemic. This rate is also lower than the long-term average of 8.46%. Now personal data from yesterday (I was at the land of Disney in Florida): 1-Uber/Lyft too and from cost just over $142 (9 people) 2-Park hopper passes for 1 day cost $2,169 (9 people) 3-Lunch $86.31 (5 people) 4-Dinner $71.28 (6 people) 5-Misc drinks (mostly water) throughout the day $79 6-Dessert $59.57 (6 people) 7-Tank top because of a wardrobe malfunction $37 7-Total for a single day of Disney Parks FL with between 5-9 people depending on the time of day $2644 The long and short is that costs are going up, and more people than ever don't have savings in their bank accounts. Now that they have burned through those bank account savings over the last couple of years, they are turning to BNPL. This bubble will be popping in the next 18 months.

Wine prices are off the rails in B.C. In many cases, retailers are simply picking a price out of thin air because suppliers and producers are doing the same, and the monopoly sits back and collects windfall income by levelling its already onerous markup on the total amount of the new landed price, no matter how much the price has jumped due to inflation or supply issues. It is a license to print money. Everybody wins except you, the consumer. Here are some picks to help fight the battle, but the list is getting shorter and more challenging to put together when you consider value for money in the equation. This list is for you if you drink wine most days with your meals, not just on special occasions. If this kind of information is helpful, why not sign up for our free newsletter at https://lnkd.in/eW4ewg7? https://lnkd.in/gAZhjfcW

Inflation may be easing, but restaurant owners are still grappling with high prices. Despite the decline in inflation rates, local venues are charging more. For example, a simple cup of coffee now costs $6.50 in the CBD, up from $4 recently. Local venue owners express frustration over the ongoing need to keep prices high. Rising leasing costs, coupled with interest rate hikes, have squeezed already narrow profit margins. Despite efforts to absorb these increases, businesses find themselves gradually passing on expenses to customers. The impact of rising raw material costs is also significant. Beer kegs have surged from $300 to $400, and essentials like fruits, vegetables, and meat have seen substantial price hikes. These mounting expenses compel businesses to carefully adjust their pricing strategies to remain viable. The challenge is balancing affordability for customers while ensuring business sustainability. Regular price adjustments are crucial for covering operational costs and maintaining quality. However, merely passing these costs onto consumers risks alienating price-sensitive patrons and potentially decreasing foot traffic and revenue. Ultimately, this situation highlights the complexities businesses face in setting menu prices. Value-based pricing can help address these complexities. #pricingnews #taylorwellspricing Source: https://lnkd.in/g9AJaakh

https://ow.ly/mqlA50RfGYS Consumers are not happy about the surging prices in #FastFood #restaurants? If #labor cost is an issue, will it be cheaper to eat at a robotic #restaurant? #HR #HRM #Economy #Inflation #Market #FoodBiz #Retail

This is the most unappetizing menu you will ever read. The 'Unhappy Hour' menu highlights the challenges facing restaurants today and outlines steps municipal and provincial governments can take to ease the hardship, such as streamlining approvals, harmonizing liquor laws, cost offsets and relief programs. Please share this widely: https://lnkd.in/gPS-ZMBc  

From Plate to Profit: Avoid These 3 Food Cost Missteps in F&B Operations 🍲💸

For restaurants, labor cost inflation and food costs are down. This is no time to allow complacency to set in, rather the time to ensure processes like #riskmanagement and #sourcing are aligned for improved cost performance and to digitize reporting by region, by category and by concept for real-time analysis of drivers of food and paper cost changes and % of #COGs at risk. #SCAPlanner #Supplychain https://lnkd.in/eFJvNMXu