How a Colorado Restaurateur Innovated to Combat Rising Food Prices from Tariffs

The price of avocados is rapidly rising, especially for restaurants that rely on them. What used to cost around $45 to $50 per box is now hitting about $90 to $100. This jump in price has affected customers, who now pay $2 per scoop instead of $1. In fact, some local grocers have started limiting how many avocados people can buy due to high demand.

Restaurant owner Hammer noted that these price hikes have forced customers to reconsider their spending. “People are tightening their belts,” he said, adding that many are visiting his restaurant less often and are cutting back on extras like guacamole.

The rising costs don’t stop with avocados. Other staples, like ground beef, are also becoming pricier due to increased feed costs. This trend reflects broader inflation issues impacting many food businesses across the country.

In response, Hammer has stopped taking a salary from his restaurants to keep them afloat. Instead, he depends on his digital marketing work for income. He took over Twisted Root six months ago and acquired Mauka Poke about a year and a half ago. The seafood restaurant does fairly well, bringing in about $350,000 a year with a 5% profit margin. However, Twisted Root is struggling, showing a negative 10% profit margin despite earning $450,000 annually. The higher costs come from its larger staff and rent, along with offering more expensive vegan options.

As food prices continue to surge, many diners are feeling the pinch. A recent survey found that 63% of restaurant-goers are ordering less expensive menu items, and 47% are dining out less frequently due to rising costs.

Overall, the restaurant industry is facing tough times. Owners like Hammer are finding creative ways to manage costs while still trying to provide affordable options for customers. Staying connected with trends and adapting to consumer behavior could help them survive this challenging landscape.

For more insights on food inflation and its effects, you can visit the U.S. Bureau of Labor Statistics, where they regularly update statistics on inflation and food prices.

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