Can Restaurants Gain Ground as Grocery Prices Hit Three Month Highs

 

Restaurants have been stubbing their toes as they raise prices to the point that consumers stopped buying the items they liked and started exploring new points of fresh food distribution according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Did you know that grocery store prices were up slightly in the month of October, matching a six-month high at 0.3%, according to the U.S. Bureau of Labor Statistics. At-home food prices also went up 0.3% in July. Over the last 12 months, food at-home prices were up 2.1%.

Meanwhile, the Consumer Price Index for All Urban Consumers went unchanged in October after increasing 0.4% in September.

So, four of the six major grocery store food group indexes increased in October. Pork and beef rose 1.3% and 1.2%, respectively, while meats, poultry, fish, and eggs were up 0.7%. After falling 0.4% in September, cereals and bakery prices were up 0.2% in October. Other food at home and dairy and related products spiked 0.3%.

I’m sure you noticed that during the last year, cereals and bakery lead all grocery categories with a 4.2% price increase. Other food at home is up 3.6% and the price for meat, poultry, fish, and eggs has risen 0.4%. The price for dairy and related products dropped 0.4% over the last 12 months.

By comparison, food price inflation was down in September but flattened for groceries.

The food index rose 0.2% in September, as it did in the previous two months. The index for food at home increased 0.1% over the month, after rising 0.2% in August. 

Three of the six major grocery store food group indexes increased over the month. The index for meats, poultry, fish, and eggs rose 0.5% in September as the index for pork increased 1.6%. The index for other food at home increased 0.3% over the month and the index for dairy and related products rose 0.1%. 

The index for cereals and bakery products decreased 0.4% in September, the first decline in that index since June 2021. The fruits and vegetables index was unchanged over the month, as was the nonalcoholic beverages index. The door is open for both convenience stores and restaurants to attract new customers if they play their cards right.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869