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Inflation causing menu prices to increase

Posted at 10:52 PM, Jul 19, 2022
and last updated 2022-07-20 01:53:50-04

Inflation, worker shortages and supply chain issues are taking a toll on business owners across the country, and customers are paying the price.

Here on the Central Coast, Giovanni's Fish Market has had to raise prices by 20%. Owner, Giovanni DeGarimore, says it's the greatest percentage increase in price they've had in one decade.

"Our profits here, year to date, are down seventy-five percent," said DeGarimore.

Degarimore says the cost of workers is higher than ever before with most entry level employees making 20 dollars an hour. That combined with inflation and supply chain issues has led to a significant price increase for customers.

"The packaging, the cost of the product, the proteins, the oil that you fry the fish in right? Those are up one-hundred percent," said DeGarimore.

Oil has gone from 24 dollars per jug to 48 dollars per jug. Fish has gone from three dollars per pound to about seven. Packaging materials and beer cups have also doubled in price.

"You know you look at the inflation numbers, it's a little bit scary," said DeGarimore.

Customers are frustrated by the sky-high prices, but restaurants are just trying to stay in business and keep up with inflation.

"You've got sales down, you've got margins down and then ultimately that profit is down, so you know we could go on another probably year," said DeGarimore.

Giovanni's is far from the only restaurant increasing prices on their menu. In Pismo Beach Kraken Coffee Company has started charging more for alternative milks. Barista, Karli Mckee, says most customers are willing to pay the price.

"I think most coffee shops now have already had the standard of charge more for the alternative milk, so I think most poeple are pretty okay with it," said Mckee.

Customers are also willing to shell out the cash to crack a crab from Giovanni's.

"Well when you really want that piece of fish you're going to spend a little extra for that special dinner," said customer Mike Shultz.

"It's a splurge, but we're old as dirt! I'm 75, so how much longer am I gonna get it?" said part-time resident, Deb MacDonald.