There has been talk of some consumers snubbing restaurants as of late due in part to rising menu prices. Menu price inflation has tempered some but has been stronger than grocery store price inflation in recent months. Grocery store price inflation in February was just 1 percent higher than prior year while menu price inflation was up by 4.6 percent. But as the chart shows below, menu price inflation since the beginning of Covid is on par with grocery store. Makes one question some headlines out there suggesting grocery prices aren't elevated, huh? All this being said, we as an industry should be very sensitive to the existing consumer frustrations with menu prices.
Datum FS is a supply chain and commodity intelligence organization. If you would like to learn more about Datum FS services feel free to email us. Thanks for reading.