Short Sweet Recession Post: Love Your Local Restaurants
November 7th, 2011
Food for your thoughts the next time you see menu prices and get annoyed:
Restaurants’ raw ingredient costs have increased 26% in the last 4 years.
Menu price increases in the same time period average 2.6% – exactly 1/10 of the differential.
In the real world, how does that play out? Let’s say a dish was on the menu for $19. The raw food cost on that item was probably around $8. That left $11 for the restaurant to pay rent, bills, servers, cooks, insurance, et cetera.
NOW the dish costs $20 and you’ve noticed. However, the food costs are now $10. Two dollars have flipped in this deal – you’re paying $1 more but the restaurant is “getting” $1 less. For the restaurant to still be making their $11 (of which about 50 cents to a dollar will be actual profit), they’d have to price the dish at $21 or more. No one wins, but the restaurant is still cutting you a break.
Sucks, right? Well, we are in a recession and you can choose how you spend your money.
My request for you is to consider spending your less-frequent dining dollars locally. Instead of $30 for pizzas from a national chain, get take-out from Johnny’s. Or delivery from Giovanni’s or Straight Up Pizza. Or have a sit-down meal at The Grill and plan your next special occasion at the next-door spot, Jennifer James 101.
With many restaurants operating on a 3 or 4% profit margin, this means there are a lot of small local spots that are trying to just survive this recession, raising prices a tiny bit or not at all while making no money – possibly even losing money for awhile hoping to not have to drive away customers that are having their own wallet-pinching woes.
Go. Visit your favorite local restaurant, where the cooks are visible, the owner circulating (if they’re not the same person!), and the patrons nearly all regulars. Thank them for the service they provide and let them know you hope they’ll be around for a long time.
Then, tip well after you enjoy a great meal, even if it won’t all go to your server if the restaurant practices tip-pooling. Know that you are making a difference in both your local economy as well as a small business owner’s success.




Yeah, the process is happening again, and whether or not you think James Beard House is a bunch of foodie hooey, recognizing talent is something that humans do well and feel good about. 

