As inflation continues to affect the price of goods and services across the nation, restaurants and food suppliers are warning prices will continue to steadily rise.
Tyson, Campbell Soup, and Kraft indicated that further price hikes are inevitable amid soaring costs for labor, ingredients, packaging, and transportation. In addition, fast-food chains like McDonald’s, Shake Shack, and Cracker Barrel have said they’ve also felt the strain of rising costs.
The New York Post, citing a report from The Wall Street Journal, reported that Kraft is planning on rising prices on products like Miracle Whip, some deli meat, Maxwell coffee, and Classico pasta sauces this summer.
Campbell Soup announced in April that the company plans on raising prices for the third time this year. Tyson Foods said it increased the price of beef by about 24 percent over the three months ending April 2. And Sanderson Farm, one of the largest chicken producers, said its products have seen price hikes of about 34 percent for the quarter ending April 30.
“Inflation is real, and it’s not going to get any better any time soon in the restaurant business,” said Shake Shack CEO Randy Garutti at an investor conference, according to the report.
Ian Borden, the head of McDonald’s international business, said during an investor call that the chain is looking into whether its customers can endure the rise in prices. The burger chain is planning on doing smaller, more frequent increases.
There are currently multiple elements at play contributing to the rising prices. Bird flu outbreaks, soaring fuel prices, weather, Russia’s invasion of Ukraine, and a staffing crisis are all contributing factors.
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