LUBBOCK, Texas (KCBD) – As the country reverts to more pre-pandemic rituals, supply chains struggle to keep up with demand, putting business owners in dire straits.
This means that you may have noticed that the price of your usual order at your favorite restaurant has gone up.
“I don’t know what to say to people. Is there hope at the end? How far does it go? ”Co-owner of The Bent Nail, said Jordan.
At the restaurant at 98th and Slide, you will see a new message on the door that reads in part:
“Dear guests, due to the rapid increase in the prices of raw meat and ingredients … we have to increase our prices.”
Jordan says the business was operating at a loss for two weeks before he made the tough decision to bite the bullet.
“It seemed wrong. And I told everyone, it sounded wrong so it looks wrong now. This is not what we want to do, but it is what we have to do. I have no choice, “he said.” We heard from our meat supplier that the meat is increasing very quickly… It cost $ 4.69, $ 4.79, $ 4.89. We pressed the panic button.
But he is not alone.
Restaurants in town and across the country must do the same.
“This is exactly what you expect when demand is rushing and [people say] I want to buy things. And the companies, the companies say, well, I want to sell you things but I don’t have it yet and so the only thing that can happen is that the prices go up, ”said Michael Noel, professor of economy at Texas Tech.
Noel says what we are going through is due to being on the other side of the pandemic.
In the beginning, there was too much supply and not enough demand.
Now it’s the other way around.
Price increases are now happening at all levels. From barbecued chicken wings, produce and more.
For the meat industry, not only has production slowed down over the past year and a half, but the effects of the winter storm in February are still being felt today.
” [It] has caused a number of shortages, including fertilizer and animal feed, which you need to feed animals or to grow crops, ”Noel said.
For Jordan, that means his smoked meats have gone from $ 21 to $ 29.50.
A rack of ribs? $ 36, $ 8 more than usual.
According to economists, it could take months for prices to come back down.
“As supply catches up with demand,” Noel said. “These imbalances will eventually be resolved. “
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