Inflation has increased the costs of most goods and services across the U.S. — including restaurant services. Unfortunately, many restaurants, including Eddie’s on Lake Norman, have had to raise prices slightly to stay afloat while combating ever-increasing costs of groceries, supplies, and labor.
Understanding the causes and effects of inflation on the restaurant industry can help you prepare for the higher costs you may experience at your next restaurant visit. Read on to learn more about inflation and “restaurants near me,” then visit Eddie’s on Lake Norman to receive top-quality dishes and service at the best possible prices.
2022 Inflation Rates
Inflation is a general rise in prices across an area, causing the value of the dollar to decrease. Each year, the inflation rate across the U.S. changes slightly.
The Federal Reserve tries to keep the inflation rate around 2% annually, considering this percentage acceptable and manageable. However, between June 2021 and June 2022, consumer prices increased by 9.1% nationally. This rate is the most significant 12-month increase since 1981.
How Is Inflation Impacting the Restaurant Industry?
Restaurants must charge high enough prices to profit on the foods and supplies they purchase and the labor they must pay for to run their businesses. When their overhead costs increase due to inflation, restaurants must either take a hit to their profitability or increase prices likewise.
Here are a few significant ways inflation is currently impacting the restaurant industry.
Rising Food Costs
One of the highest overhead costs of running a restaurant is food. Between 2021 and 2022, the cost of food increased by 10.4% overall, critically impacting the restaurant industry. However, smaller regions saw varying inflation rates, affecting the restaurants nearby accordingly.
Increasing Supply Costs
Restaurants typically use gasoline to power some or all of their cooking equipment. Unfortunately, energy costs have increased drastically as a result of nationwide inflation.
According to the Consumer Price Index, fuel oils and other fuels increased by 70.4% between June 2021 and June 2022. Electricity increased by 13.7% and utility gas service increased by 38.4%.
Due to these rising costs, restaurant owners must spend more money obtaining the fuel and supplies necessary to run their businesses.
Higher Labor Costs
Inflation and numerous other factors have also created a labor shortage. Today, many workers will not work for the minimum wages they accepted a few years ago. As a result, restaurants must pay employees more to prevent turnover.
Rising Rent Costs
Rent costs are also increasing across the country. Restaurant owners must dedicate more of their budgets to paying for their buildings than before.
How Is the Restaurant Industry Responding to Inflation?
All the above factors have led restaurants to spend more money on the goods and services necessary to run their businesses. However, the methods restaurants use to combat inflation vary. Here are a few ways restaurants have responded to inflation:
Raising Menu Prices
One of the most direct ways restaurants have responded to inflation is by increasing menu prices. Many restaurants have raised the costs of specific menu items by one or two dollars, increasing a customer’s total bill slightly.
Reducing Portion Sizes / Food Costs
Some restaurants have reduced the portion sizes of their main dishes, appetizers, and sides to account for inflation. Others have begun using lower-quality versions of the same ingredients. As a result, they can keep their menu prices the same while avoiding losing money on dishes.
Incorporating Fees into Bills
Rather than increasing menu prices, some restaurants have added small fees to each customer’s bill. These fees often include the credit card fees restaurants previously paid out of pocket to allow customers to use their cards. Alternatively, some restaurants have added an 8% to 10% inflation charge to every bill.
Implementing Minimum Spending Limits
Finally, many restaurants have implemented a minimum spending limit for groups or specific services. For example, you may need to spend at least $20 at the bar to have a patio table at some restaurants. Alternatively, your large group may need to give a $200 deposit, which will go toward your bill.
How Eddie’s on Lake Norman Is Managing Inflation
At Eddie’s on Lake Norman, we have experienced the consequences of inflation alongside many other businesses throughout Moorseville. However, we always strive to keep our prices as low as possible for customers. As a result, we have only implemented a few minor changes in response to rising costs.
First, we have implemented a $1 surcharge for every printed check. Additionally, we have begun charging a 3% credit card processing fee.
These small changes allow our restaurant to continue serving high-quality dishes to valued customers like you. We appreciate your understanding as we work to keep Eddie’s on Lake Norman as one of the best restaurants in Moorseville.
Stop by Eddie’s on Lake Norman today to try our hand-crafted meals using the freshest ingredients in the area.
About Eddie’s on Lake Norman
Ann-Margaret Wagner brings her hospitality and restaurant expertise from New York to the shores of Lake Norman with Eddie’s On Lake Norman. Ann-Margaret is the former owner of a successful restaurant in Westchester County, New York, called The Muscoot Tavern, an iconic “Cheers-like” bar and grille. After visiting Lake Norman, she fell in love with the area, saw potential in the restaurant, and decided to make North Carolina her new home with her daughter Lacy.
After purchasing the business, which was previously Vinnie’s Sardine Grille and Raw Bar, she completely renovated the entire space, sold the other restaurant, and moved south. The kitchen is filled with all new appliances, while the bar, dining room, and back patio were all touched up to create a clean, comfortable and relaxed atmosphere. Whether in North Carolina, New York, or anywhere else, Ann-Margaret’s mission is always to provide the freshest seafood, prime meats, produce, pasta, and bread, every meal.
“I hope you enjoy eating our delicious cooking as much as we love making it for you!”
If you would like to book an event at Eddie’s on Lake Norman, we require a $250 refundable deposit that can be applied to your bill and or credit card used for deposit. We charge a $50 Event Fee and 25% gratuity, plus tax. For more information, call us at (704) 799-2090.
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