|Last week in our COVID-19 update we discussed shortages due to cyber security hacks. This week in our COVID-19 update we will discuss how to forecast pricing your menus when extreme pricing subsides. |
The general consensus is that in several weeks food pricing should subside. However, when those prices level off, most industry experts say that they will not go down to previous levels.
This is because of a few reasons–
1. One reason being the increase in labor cost. Once those rise, they rarely come back down.
2. Another reason is that input cost, predominantly feed, is extremely high with no relief in sight. Feed cost has increased because now 67% of US farmland is currently experiencing drought conditions.
It is important to remember that food prices will eventually get better, but be wary of decreasing menu prices until things resolve.
Kuna is here to support you during these challenging times. Reach out to your rep for more information.