In last week’s edition I explained my thoughts on the good, the bad and the otherwise. Today I want to point on the bad, but the mostly good, of the Paradoxical Inflation Commodity as it relates to dining out.
This recent article published by The Wall Street Journal that I am sharing today sheds light on the persistent nature of inflation across the globe. (The Bad) However, while inflation presents challenges to various sectors, one industry that continues to flourish despite these economic headwinds is the restaurant industry. This story also highlights the resilience and adaptability of restaurants, as people continue to enjoy dining out despite inflationary pressures. (The good) Let’s focus on the good for a bit longer…
Continued Demand for Dining Out:
Despite the global phenomenon of inflation, people's love for dining out remains steadfast. The article acknowledges the persistence of inflationary forces, which have impacted the prices of commodities, ingredients, and labor costs for restaurants. However, it is crucial to recognize that this hasn't deterred individuals from visiting their favorite restaurants and exploring new culinary experiences.
Innovation and Creativity:
Restaurants have shown remarkable resilience by embracing innovation and finding creative solutions to navigate the challenges posed by inflation. In response to rising costs, many restaurants have revamped their menus, reevaluated their supply chains, and adopted new technologies to streamline operations and control expenses. (Cue several Branded’s Portfolio Companies) These adaptations have allowed them to continue providing exceptional dining experiences while managing inflationary pressures.
Creative Pricing and Value Offerings:
Restaurants have become adept at providing value to their customers while navigating inflationary challenges. In response to rising ingredient costs, some establishments have adopted creative pricing strategies or introduced special offers to maintain affordability. This approach ensures that diners can continue to enjoy meals at their favorite restaurants without compromising their budgets.
While inflation continues to impact economies around the world, the restaurant industry has proven resilient and adaptable in the face of these challenges. Despite rising costs, people's unwavering desire to dine out has bolstered the industry, supported by innovative approaches, community engagement, creative pricing, and a focus on meeting changing consumer preferences. This positive narrative highlights the ability of restaurants to thrive amidst ongoing inflation, showcasing their enduring appeal and the enduring power of shared culinary experiences. You’ve heard me say it before, and I’ll say it again, one thing I do know is that you have to eat, but you don’t need to buy the shiny new car.