Inflation Rates Effects in the Restaurant Industry

To dig a little deeper into how inflation affects specific industries, I interviewed with a local restaurant owner, who also happens to be my boss, Bechara Cobti. Bechara owns Syros, in Lewiston New York. He purchased the business and building in 2009 and has been owning and operating it himself ever since. I took the time to pick his mind about inflation’s effects on his business and this is what I came up with. I’ve also included the below picture of Bechara creating one of his famous Saganaki breakfasts.

Q: What kind of effects, if any, does inflation have on how you run your business?

Bechara began to explain how “every year, to adjust for rising costs, I have to increase each item’s price on the menu. If I don't adjust prices, I would be cutting into my profits each year” He also mentioned that there are some underlying costs to this. “Every year when I make adjustments to the menu, the menu’s have to be reprinted. This in return, adds another expense to my income statement. I have to pay for the new menus, and then pay the staff to swap the old menus out with the new ones in their plastic coverings.”

Q: Do you think these increases in price affect whether customers will come to eat at your restaurant?

Bechara informed me that “My loyal customers will remain loyal customers because of the quality service and food we provide. I believe most of them are very understanding when increases in the price of items happen each year. However, there are some items, such as coffee, that gets increased and some customers think the price is too high. There is only so much you can charge for a cup of coffee before customers choose a cheaper alternative, that can produce coffee for cheaper.”

Results

Overall, between both interviews I conducted between Ken, owner of Beau Enterprises, and Bechara, owner of Syros, I have concluded that inflation most certainly affects their business plans. The cost of there raw materials are rising, in return, the prices that they administer to their customers' rises. They both mentioned how they have to raise prices every year and it makes me as a customer wonder, “How much will everyday items and services cost in 5 years, 10 years or even 20 years”.