pushed to the limit
26 November 2021 0 comments
"The margin of safety is running out": restaurants raise prices by 10-15% since the new year
Shokoladnitsa chains, Black Star Burger, Tigrus Group and other companies warned about the increase in price tags in the menu. The stated reasons are the rise in price of products, high rental rates, outflow of personnel
The restaurant menu will not be the same: industry representatives are talking about the inevitable price increase. The main reason is that there are practically no products left that have not become more expensive.
Purchase prices for poultry meat increased by 25%, business complains, for beef - by 15%. A similar price increase is present for seafood. If until now the chefs managed to get out and restrain the price tag, now the most creative ways do not work, the chef, owner of the United Kitchen restaurant Andrey Ryvkin told Business FM:
Andrey Ryvkinshef-chef, owner of the restaurant United Kitchen"Everything is getting more expensive. If earlier it was possible to compensate for the rising prices of products with changes in the menu, some kind of creativity, recipe, try to maneuver somehow, now the rise in price is widespread. For example, all meat products [are getting more expensive]. I think it will continue. Beetroot, potatoes... potatoes have an incomprehensible price. I don't understand how this will develop further."
In addition to the increase in food prices, there are big problems with their supply. Logistics difficulties that have taken over the world have inevitably hit catering, says the ombudsman of the Moscow restaurant market, the founder of the chain of restaurants "Meat & Fish" Sergey Mironov.
Sergey Mironov, a businessman of the Moscow restaurant market, founder of the Meat & Fish restaurant chain, "Something is not being delivered, there are supply problems somewhere, some countries are being quarantined, we ban products from some countries. Let's say we banned the supply of marbled beef from Argentina, Uruguay: our Rospotrebnadzor considered that their factories were not working properly. All this creates a situation where prices are rising. Well, the most understandable factor for everyone is the growth of the dollar and the euro. We have not yet fully come to import substitution and we buy a lot from abroad. Any change in the exchange rate affects the price. Somewhere someone will refuse any product that significantly increased, as recently many restaurants refused to octopus because the octopus for the six months rose two times, it makes no sense to raise the price on it, to a level price simply to raise the impossible."
Another factor is that the salaries of employees of restaurants has increased. Migrants employed in catering have left and are in no hurry to return back. Some of the employees left the industry altogether: it turned out to be an unstable source of income. In such a situation, the staff dictates their salary conditions to employers.
Commercial real estate rental rates are also increasing. However, all this does not mean that guests will experience a shock from the new prices, says Stanislav Lisichenko, owner of the Chinese News restaurant chain:
— It's just that the restaurant is running out of safety margin, so we will have to officially raise [prices]. Question of strategy: how to do it? Yes, it can be done within a few months, in three stages, it will be less noticeable, but it can be done in one day. We will do it more cleverly: prices will rise within three to four months by a small amount. But as a result of 15-20%, I think it is inevitable in 2022.
— Are you not afraid that there will be fewer guests, there will be a decrease in demand?
- It is possible to be afraid that there will be fewer guests, of course, but if this is not done, there will be fewer restaurants.
However, not all restaurants dare to take unpopular measures. The Novikov Group chain still intends to restrain prices, says restaurateur Arkady Novikov.
"Prices in Novikov Group restaurants can rise only in one case: if the prices of purchased products are greatly increased. Only in this case. So far, we are not even considering any price increases, because the products are still in the price category that they are. Except, for now, maybe beef. Everything else is normal for the previous months."
The restaurateurs interviewed by the radio station do not hope to return to the pre-pandemic profit indicators yet. Other figures in the menu will only allow us to reach a stable level of income, although demand, according to market participants, is gradually recovering. In any case, they are optimistic about the upcoming holiday season.
Shokoladnitsa chains, Black Star Burger, Tigrus Group and other companies warned about the increase in price tags in the menu. The stated reasons are the rise in price of products, high rental rates, outflow of personnel
The restaurant menu will not be the same: industry representatives are talking about the inevitable price increase. The main reason is that there are practically no products left that have not become more expensive.
Purchase prices for poultry meat increased by 25%, business complains, for beef - by 15%. A similar price increase is present for seafood. If until now the chefs managed to get out and restrain the price tag, now the most creative ways do not work, the chef, owner of the United Kitchen restaurant Andrey Ryvkin told Business FM:
Andrey Ryvkinshef-chef, owner of the restaurant United Kitchen"Everything is getting more expensive. If earlier it was possible to compensate for the rising prices of products with changes in the menu, some kind of creativity, recipe, try to maneuver somehow, now the rise in price is widespread. For example, all meat products [are getting more expensive]. I think it will continue. Beetroot, potatoes... potatoes have an incomprehensible price. I don't understand how this will develop further."
In addition to the increase in food prices, there are big problems with their supply. Logistics difficulties that have taken over the world have inevitably hit catering, says the ombudsman of the Moscow restaurant market, the founder of the chain of restaurants "Meat & Fish" Sergey Mironov.
Sergey Mironov, a businessman of the Moscow restaurant market, founder of the Meat & Fish restaurant chain, "Something is not being delivered, there are supply problems somewhere, some countries are being quarantined, we ban products from some countries. Let's say we banned the supply of marbled beef from Argentina, Uruguay: our Rospotrebnadzor considered that their factories were not working properly. All this creates a situation where prices are rising. Well, the most understandable factor for everyone is the growth of the dollar and the euro. We have not yet fully come to import substitution and we buy a lot from abroad. Any change in the exchange rate affects the price. Somewhere someone will refuse any product that significantly increased, as recently many restaurants refused to octopus because the octopus for the six months rose two times, it makes no sense to raise the price on it, to a level price simply to raise the impossible."
Another factor is that the salaries of employees of restaurants has increased. Migrants employed in catering have left and are in no hurry to return back. Some of the employees left the industry altogether: it turned out to be an unstable source of income. In such a situation, the staff dictates their salary conditions to employers.
Commercial real estate rental rates are also increasing. However, all this does not mean that guests will experience a shock from the new prices, says Stanislav Lisichenko, owner of the Chinese News restaurant chain:
— It's just that the restaurant is running out of safety margin, so we will have to officially raise [prices]. Question of strategy: how to do it? Yes, it can be done within a few months, in three stages, it will be less noticeable, but it can be done in one day. We will do it more cleverly: prices will rise within three to four months by a small amount. But as a result of 15-20%, I think it is inevitable in 2022.
— Are you not afraid that there will be fewer guests, there will be a decrease in demand?
- It is possible to be afraid that there will be fewer guests, of course, but if this is not done, there will be fewer restaurants.
However, not all restaurants dare to take unpopular measures. The Novikov Group chain still intends to restrain prices, says restaurateur Arkady Novikov.
"Prices in Novikov Group restaurants can rise only in one case: if the prices of purchased products are greatly increased. Only in this case. So far, we are not even considering any price increases, because the products are still in the price category that they are. Except, for now, maybe beef. Everything else is normal for the previous months."
The restaurateurs interviewed by the radio station do not hope to return to the pre-pandemic profit indicators yet. Other figures in the menu will only allow us to reach a stable level of income, although demand, according to market participants, is gradually recovering. In any case, they are optimistic about the upcoming holiday season.