The Inflation Thread.

[Folster]

This phenomenon is explained with the often repeated cliche, inflation is sticky which is one reason why it's so dangerous. Commodity prices for the most part have stabilized but businesses large and small subject to the whims of commodity prices are very slow to reduce prices if ever.

And while eggs and lumber have comeback down to earth, wages are the stickiest of inputs particularly in a tight labor force. And none of us outside of business owners are eager to see wages drop.

 

[Russ Smith]

Sounds like the Chinese restaurant that I normally go to. Over the last two years the dishes went from ~$15 each to ~$20 each. A 33% increase is huge. At first I was giving the benefit of the doubt that ingredients went up but I think they blew past that.

In addition to the price raise, the containers are coming less full now too. Labor day I orders and the Pepper Steak was only about 70-80% as full as it used to be. I used to always have enough left overs for lunch the next day but not this time.

It's caused me to order a lot less. We're at the point now where I have to want to get it over casually getting it instead of cooking at home. .

Yeah Lucy's Pho still came in an enormous bowl so 3 meals out of it for her but even that was 18.99 instead of 13.99 pre covid.

They do lots of take out business too so while I doubt they have all their pre Covid business back, they're not decimated. Not that tv's are expensive these days but they have 4 new flat screens up now, we actually saw them in boxes the last time we ate there and they're up now. Even with cheaper tv's that's at least 1200-1400 bucks for those 4 tv's. So they're not broke.

But I get it, the fancy hamburger place nearby went under during the first year of Covid, and so did 2 other restaurants there(Sunnyvale towncenter downtown Sunnyvale). Even the Macy's went under although I think that was inevitable even pre Covid.

But yeah the prices have gone up higher than they probably need to and I don't buy it's due to labor costs again they had a cook and 2 waiters front staff that was it.

 

[Devilmaycare]

Yeah Lucy's Pho still came in an enormous bowl so 3 meals out of it for her but even that was 18.99 instead of 13.99 pre covid.

They do lots of take out business too so while I doubt they have all their pre Covid business back, they're not decimated. Not that tv's are expensive these days but they have 4 new flat screens up now, we actually saw them in boxes the last time we ate there and they're up now. Even with cheaper tv's that's at least 1200-1400 bucks for those 4 tv's. So they're not broke.

But I get it, the fancy hamburger place nearby went under during the first year of Covid, and so did 2 other restaurants there(Sunnyvale towncenter downtown Sunnyvale). Even the Macy's went under although I think that was inevitable even pre Covid.

But yeah the prices have gone up higher than they probably need to and I don't buy it's due to labor costs again they had a cook and 2 waiters front staff that was it.

I don't think Jade is hurting either. They just opened up the dining room again about 2 months ago. They had been take out only since covid started. It got a full remodel and fixed up during that time. So they were doing well enough that they could afford to keep the dining room closed.

 

[dscher]

Restaurants are going to find out soon that eating out is one of the first things to go when money gets tight.

Yerp. Imagine delivery. I spent 30 bucks for a pizza to be delivered the other day.. good luck with that moving forward.

Lord.

 

[Devilmaycare]

Wow, what a difference 30 years makes. I want to go back to the filming and see the reaction when they’re told that in 2023 that there's over a trillion in US consumer CC debt.

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[dscher]

Wow, what a difference 30 years makes. I want to go back to the filming and see the reaction when they’re told that in 2023 that there's over a trillion in US consumer CC debt.

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"What's a trillion dollars?", they say...