Welcome to the Louisville Restaurants Forum, a civil place for the intelligent discussion of the local restaurant scene and just about any other topic related to food and drink in and around Louisville.
User avatar
User

Robin Garr

{ RANK }

Forum host

Posts

22984

Joined

Tue Feb 27, 2007 2:38 pm

Location

Crescent Hill

Inflation poses tough pricing choices for chefs and owners

by Robin Garr » Wed May 04, 2022 8:50 am

Inflation poses tough pricing choices for chefs and owners

Dan McMahon's marked-up menu on which he reluctantly planned an across-the-board price increase. (Some of the final increases were a little less.)
Image

Dan McMahon sat with a Sharpie and an extra copy of his restaurant’s trifold menu and pondered a difficult decision.

McMahon, general manager of Danny Mac's Pizza in the Mellwood Art Center, knew he would have to raise prices. With grocery prices rising fast, gasoline prices topping $4 a gallon locally, and inflation the United States hitting the highest levels seen in decades, that was a done deal.

“We just went through all of our invoices and found out that lots of our business supplies went up about 20 percent in the last month,” he said. “All food and packing supplies went up. Twenty percent can put you out of business fast if you don't change your prices.”

Pondering, worrying, McMahon worked through each column – starters and salads, specialty pizzas, and build-your-own pizzas – trying to hit the sweet spot that would cover his costs without kicking up consumer resistance. (His working sheet is pictured at the top of this page.)

Starting at the top, a $5.99 order of bread sticks got a tentative $7.25 price. The $16.99 Nashville hot chicken pizza saw a boost to $20.50, and The Combo and Danny Mac’s Hot Brown pizza saw increases from $21.99 to $26.50.

He made a couple of tweaks at the end, rounding the top-end pizzas down to a penny under $26. But overall, Dan and his Sharpie boosted each of the 22 menu items by roughly 20 percent.

“I had to choose between keeping the quality or downgrading our product,” he said. “I decided to keep our quality where it is and hope our customers understand that we can't control the supply costs and we have to raise our menu prices. It's very stressful. Hope it turns out well. Scary stuff!”

McMahon is exceptionally open about his inflation journey. But it’s no secret that a combination of increasing prices for food and supplies, worker shortages and growing wage expectations, and costs for takeout and delivery supplies and services has the industry in a tightening vise.

To get a sense of where local restaurant prices are headed beyond my conversation with McMahon, I took a look back at menu prices at several pricey eateries (and a couple of affordable ones) to get a picture of what’s happening with menu prices. You probably won’t be surprised to learn that the trend is up.

It’s a tough situation out there, and it’s not getting better. Here’s a random look at how prices have change at a few upscale local spots, listed alphabetically, with one not-so-upscale dining room at the end.

211 Clover Lane

During my last review visit, in October 2015, nine main courses ranged in price from $23 (for wild-mushroom pasta) to $41 (for grilled filet mignon). The menu currently on 211’s website ranges from $29 (for a similar pasta dish, garganelli pasta with local mushrooms) to $44 (for Creekstone Farms filet mignon).

610 Magnolia

It’s been a while since I enjoyed the lavish pleasures of the multi-course prix fixe dinner at 610. Back in 2010, when the economy was gradually pulling out of the Great Recession you could get by with a three-course dinner for $50 or a four-course repast for $60, not including wine. Ten years later, the five-course tasting menu is up to $110, with another $65 for a wine-pairing option.

Anoosh Bistro

Four years ago at Anoosh Bistro the 18-entree bill of fare ranged from $19 (for what may have been the city’s most expensive hamburger) to $42 (for an 8-ounce grilled beef tenderloin). Now, if you pass on the $85 three-course prix fixe dinner, entrees start at $38 (for any of three really impressive looking vegetarian entrees) to $63 for several options at the upper end),

Fat Lamb

At the end of 2016, entrees here were $16 (for a Kentucky Black Hawk Farms double cheeseburger) to $29 (for either a seared New York strip or seared scallops). A four-course chef’s tasting menu was $45 per person. Now the smashed double cheeseburger is $18, and garlic and herb marinated lamb chops top the bill of fare at $52.

Porcini

It’s been four years since I last reviewed Porcini. At that time main-course prices ranged from $24 (for chicken Marsala) to $39 (for lamb chops or a grilled veal chop). Chicken with the marsala treatment is now $30, and a beef tenderloin fillet with gnocchi is $46.


Seviche

Seviche restaurant is a favorite, and that’s why it was one of the first places I went for a sit-down dinner after covid vaccinations arrived. In April 2021, the trademark seviches were $15 to $19. ad the entrees were priced from $21 to $39). A year later, seviches are $17 to $19, and entrees range from $25 (for mahi mahi tacos) to $43 (for sea scallops or wild-caught grouper).

Volare

Another of my favorite local eateries, Volare, listed eight main dishes (“piatto principale”) from $20 to $46 during my 2017 visit. Now the range extends from $29 (for any of four Italian standards with the choice of chicken over more pricey veal) to $48 (for osso buco in red wine).

Cheap eats: Burger Girl

Looking for great cheap eats? It’s hard to beat Burger Girl, and its siblings Burger boy and Hillcrest Tavern. When I brunched at Burger Girl in 2019, I reported that only two of the 20 breakfast options cost more than $10, and the bill of fare topped out at $13.99 for rib eye steak with three eggs. Burgers in 10 variations were $7.99 to $13.99 (for the bison Burger Girl combo with fries and a soft drink). Now a few more items have moved past the $10 barrier, and that ribeye-and-eggs feast is $15. But here’s good news to leave you with: That Bison Burger Girl Combo has gone up only a penny. It’s $14.

Read the complete article on LouisvilleHotBytes,
http://www.louisvillehotbytes.com/inflation-pricing

You'll also find this article in LEO Weekly online later this week.
http://www.leoweekly.com/category/food-drink/
User avatar
User

Steve Eslinger

{ RANK }

Foodie

Posts

349

Joined

Fri Jan 11, 2008 1:42 pm

Location

Highlands

Re: Inflation poses tough pricing choices for chefs and owne

by Steve Eslinger » Wed May 04, 2022 10:33 am

I'd say with the exception of Anoosh Bistro and perhaps 610 Magnolia, those increases are quite reasonable. And about Anoosh Bistro, the prix fixe sounds like the way to go if the entrees start at nearly half the price.
no avatar
User

Mike L

{ RANK }

Foodie

Posts

149

Joined

Wed Dec 09, 2009 1:58 am

Re: Inflation poses tough pricing choices for chefs and owne

by Mike L » Wed May 04, 2022 9:42 pm

I don't understand how all these restaurants are still in business. And I really don't understand how they will survive long term.

Inflation is going up so restaurants and everyone else is raising prices. Many people haven't gotten a cost of inflation raise. So they can't afford what they could before. The same salary has less buying power.

Not to pick on Danny, who I've met and is a very good guy, but I have to pay for gas and everything else that's rising in price, too. If I have nothing left over after paying for necessities, I'm sorry to say but Danny and the other restaurants are going to lose out.
User avatar
User

Robin Garr

{ RANK }

Forum host

Posts

22984

Joined

Tue Feb 27, 2007 2:38 pm

Location

Crescent Hill

Re: Inflation poses tough pricing choices for chefs and owne

by Robin Garr » Thu May 05, 2022 9:22 am

Mike, you've posed the question that has everyone worried including restaurant owners. Inflation is on the rise and the economy isn't really good for anyone except the wealthy. It's going to hurt more than just restaurants, I'm afraid, and I don't even want to think of the potential consequences for all of us of going into the midterm elections with all this going on.
User avatar
User

Gary Guss

{ RANK }

Foodie

Posts

897

Joined

Fri Mar 02, 2007 2:18 pm

Location

Van down by the River

Re: Inflation poses tough pricing choices for chefs and owne

by Gary Guss » Thu May 05, 2022 3:33 pm

This will cause innovation and changes to the restaurant menus, recipes, operations as did the Great Depression and the end of World War 2 ... Onion burgers anyone? https://www.xtremefoodies.com/food-category/Historical/review/Sids-Diner/Oklahoma-Onion-Burger-/8773_9031
Think about BBQ, Ramen, Okonomiyaki and a lot of the things we eat that were invented by necessity, scarcity, and economy. We are once again in those kinds of times. Might be a good idea for a food blog


GG
User avatar
User

Mark R.

{ RANK }

Foodie

Posts

4369

Joined

Mon Apr 09, 2007 12:02 pm

Location

Anchorage, KY

Re: Inflation poses tough pricing choices for chefs and owne

by Mark R. » Thu May 05, 2022 8:15 pm

It would also be interesting to see if any of the restaurants that haven't had huge price increases have instead downsized their portions. This is something that is happening quite often in the grocery industry. In many cases it would be quite easy to do in the restaurant industry such as taking a portion from 8 ounces to 7 ounces etc. In many cases the customers probably wouldn't notice changes like this.
Written using Dragon NaturallySpeaking

"Life is short. Drink the good wine first"
User avatar
User

Jay M.

{ RANK }

Foodie

Posts

797

Joined

Mon Apr 09, 2007 10:09 pm

Re: Inflation poses tough pricing choices for chefs and owne

by Jay M. » Fri May 06, 2022 2:45 pm

Mark R. wrote:It would also be interesting to see if any of the restaurants that haven't had huge price increases have instead downsized their portions. This is something that is happening quite often in the grocery industry. In many cases it would be quite easy to do in the restaurant industry such as taking a portion from 8 ounces to 7 ounces etc. In many cases the customers probably wouldn't notice changes like this.

A really good point, Mark. Most restaurant portions are very large.
no avatar
User

James Natsis

{ RANK }

Foodie

Posts

1055

Joined

Tue Jun 05, 2007 2:34 pm

Re: Inflation poses tough pricing choices for chefs and owne

by James Natsis » Sun May 08, 2022 9:37 am

Thank goodness for Derby. We were out quite bit these past few weeks at several galas, Opening Night at the Downs, Thunder over Louisville, etc. One only has to look at the attendance numbers, a bit down from the average range but still huge--Thurby 47,000; Oaks 100,000; and Derby 140,000.

There was a lot of out-of-town money infused in the economy. I would imagine that the food and beverage industry benefitted greatly through shear volume of people and consumption on all levels, catering, butts in the seats, prix fixe pricing in many cases, and larger than usual tipping.

After two years of non-traditional Derby, I was more appreciative of the holistics of the festival/event/race than ever.
James J. Natsis
User avatar
User

Robin Garr

{ RANK }

Forum host

Posts

22984

Joined

Tue Feb 27, 2007 2:38 pm

Location

Crescent Hill

Re: Inflation poses tough pricing choices for chefs and owne

by Robin Garr » Sun May 08, 2022 12:49 pm

James Natsis wrote:Thank goodness for Derby.

And Mothers' Day today! It's a helluva weekend for restaurant workers, but it brings in a large pile of bills.
no avatar
User

SilvioM

{ RANK }

Foodie

Posts

468

Joined

Fri Aug 01, 2014 11:13 pm

Re: Inflation poses tough pricing choices for chefs and owne

by SilvioM » Mon May 09, 2022 7:35 pm

Steve Eslinger wrote:I'd say with the exception of Anoosh Bistro and perhaps 610 Magnolia, those increases are quite reasonable.


I agree with this, the rest don’t throw me off much and, as stated below, perhaps innovation or different choices will be the way to go. I went to Ciao a few months back, they removed a scallop dish from the menu and also noticed on this list (as well as some recent carry out at Louvino) that scallop dishes went up a lot. So, no more scallops for awhile! There are other choices. Some other recent visits, like Against The Grain and Oskar’s, I’ve noticed only modest increases. As always, we can speak with our wallets and pass on things that are egregious. Anoosh Bistro is too much? Walk across the lot to Noosh Nosh, still pretty darn good.

Who is online

Users browsing this forum: No registered users and 42 guests

Powered by phpBB ® | phpBB3 Style by KomiDesign