Apple-Metro Chairman and CEO Zane Tankel discusses the state of the average consumer and the impact their attitude has on the restaurant industry on ‘Cavuto: Coast to Coast.’due to inflation and employee shortages.
"Revenues are up about 20% over pre-pandemic levels, which is fantastic. But we don't have the employees," Taffer said. "We're fighting with prices. Also, we're not getting the same spec, meaning a chicken breast comes in a different size each time." "But that's not a small matter," Taffer continued. "Now, it doesn't fit on a bun properly. It takes longer to cook. They don't know how to cook it. These things really changed the way we operate."As of January, half of the restaurant operators in the U.S. expect to make less profit in the new year, according to a recent report from the National Restaurant Association.
The National Restaurant Association Business Conditions survey underscored how "the trifecta of higher food costs, labor costs and energy/utility costs" remains a significant challenge for a majority of operations, which already run on thin margins. pressure inflation is putting on business owners. "If I can sell a $12 hamburger, but I can't sell an $18 hamburger because my market won't allow it, then I can't charge $18. I have to reduce the size of the burger. So I have a choice, either I raise my prices or I adjust my product to match the price point that I'm at now. A lot of restaurants can't elevate that price point. Their elasticity only goes so far. So it's a challenge.