Rising Food Prices in 2022 – Here’s Everything You Need to Know!
The rising food prices have been a subject of lengthy debate throughout 2021. So let’s look at how this trend will impact restaurants and other foodservice establishments this year!
Less for More
According to The Wall Street Journal, food prices are estimated to rise 5% in the first half of 2022, while other sources point to a 7% increase by the end of the year. This number might be even higher in reality if we consider that many products are also shrinking in size, which means you’re getting less for more.
How much the cost will increase for each product type depends on the supplier, the region, and how much the products have traveled through the supply chain to reach your business. Still, some 2022 food inflation forecasts have already given us a good idea about the rising cost of produce, dairy, meat, snacks, condiments, and other ingredients essential to restaurants. Let’s dig into the latest findings!
What Causes the Prices to Spike in 2022?
As we have concluded for some time now, various causes are fueling this seemingly unending crisis. In particular, supply chain issues, labor shortages, and the overall high demand across the U.S. have contributed to an impending price hike. And as we look ahead to the new year, it seems that inflation rates will continue to profoundly affect the foodservice industry, leading to rising food prices.
Of course, this is no news to the industry. According to Fortune, overall inflation rates in December 2021 rose to 6.8% over the previous year, marking the fastest annual increase in the inflation rate since 1982. Moreover, the crisis stretches far beyond retail and grocery: USDA Economist Matt MacLachlan said food-away-from-home prices might increase 3 to 4% this year.
Which Items Will Have the Highest Prices?
Food prices are expected to reach a record in 2022, but how will this affect restaurants and similar establishments? To answer this concern, let’s look at essential items and ingredients expected to become more expensive due to ongoing supply chain issues.
Firstly, prices for vegetables like potatoes and celery, but also for fruits, eggs, dairy, steaks, and chicken, are likely to see a price increase owing to overall higher freight costs. Additionally, according to a report by Wall Street Journal, alcoholic beverages (beer, liquor, wine, and so on) will also see a price increase on account of labor shortages and import delays.
No End in Sight to the Rising Food Prices
At the beginning of 2022, COVID-related supply and labor issues are still wreaking havoc in the foodservice industry. Inflation will continue to fuel the rising food prices, which means that everything from growing to transporting to purchasing food is and will get even more expensive throughout the following months. For chefs and restaurant owners, this might bring some hard choices regarding purchasing ingredients and rethinking prices on the menu.
While this is all true, Riviera Produce will continue to support foodservice establishments by offering a broad selection of locally-sourced, cost-friendly, and fresh produce to NYC’s Five Boroughs, Connecticut, New Jersey, and Philadelphia! So if you own a restaurant around, reach out and let us know!