advertisement
Forums

The Forum is sponsored by 
 

AAPL stock: Click Here

You are currently viewing the Tips and Deals forum
shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: NewtonMP2100
Date: July 21, 2022 02:03PM
....restaurant food portion sizes shrinking for same price......due to rising food prices....


Rising food prices mean smaller burgers and pizzas at restaurants

Prices for meals away from home have increased for nine consecutive months.

.....Higher food prices during what has been a historic period of inflation means some consumers have had to make tough choices about how to spend their money.

As it turns out, restaurants are doing the same, by shrinking the portion sizes on some menu items.

Economists call the phenomenon "shrinkflation." And according to new data compiled by the reviews website Yelp, diners say it is now rampant.

"In addition to higher prices on grocery stores’ shelves and in restaurants, consumers are also seeing the size or quantity of their goods shrink — a phenomenon that’s also reflected in Yelp," the reviews site says in the report released this week.

Yelp said customers observed "shrinkflation" most commonly at restaurants "serving more affordable offerings like hot dogs, hamburgers, pizza, followed by seafood restaurants, Italian food, and Chinese food."

Yelp declined to provide specific examples from its website of reviews mentioning shrinkflation — but they are increasingly common on Twitter.

Some reviewers are also calling out specific franchises like Five Guys and Shake Shack. Five Guys did not immediately respond to a request for comment. A spokesperson for Shake Shack said the company has not made any adjustments to its portion sizes.

Prices for meals away from home climbed 7.7% last month, federal data show. Those restaurant prices have now increased for nine consecutive months, and 14 of the last 15 months. In May, Bloomberg reported that fast-casual chains including Burger King, Domino's, and Subway were all reducing their portion sizes in response to the rising cost of food.

The Yelp data also show consumers booking restaurant reservations further in advance than before, and waiting longer for tables.

“Inflation mentions in Yelp reviews are increasing more than ever before, and for the first time, we’ve seen mentions of shrinkflation-related experiences,” said Pria Mudan, Yelp’s data science leader, in a statement.

Back in the store aisles, numerous consumer packaged goods are also shrinking in size, according to MousePrint.org, a website that tracks retail products.

Food prices in general have increased across the board at rates not seen in decades as the pandemic continues, federal data show. Among the items showing the greatest price hikes are meat, poultry, fish and eggs, where gains have topped 10% on a year-on-year basis every month since September. Those increases have been driven in part by higher fuel and labor costs.

But Mudan said Yelp data also suggest consumers are resilient and adapting in the face of rising prices.

"While consumers searched for fewer higher priced businesses in Q2 2022 compared to Q1 2022, perhaps in response to inflation, they still searched for higher-priced businesses more frequently than prior to the pandemic — an encouraging indicator that intent to spend at higher priced businesses is still strong," she said



get less........food.......?!



_____________________________________

I reject your reality and substitute my own!
Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: timg
Date: July 21, 2022 02:13PM
It may not be a totally bad thing if restaurant portions are getting smaller ...



Skill without imagination is craftsmanship. Imagination without skill is Modern Art.
Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: Acer
Date: July 21, 2022 02:50PM
Quote
timg
It may not be a totally bad thing if restaurant portions are getting smaller ...

I was thinking the same thing. I can struggle to eat an entire entre. That said, I'd also like to pay less to have lesser portions!
Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: mattkime
Date: July 21, 2022 03:07PM
I'm sure this varies considerably, but I'm curious how much food ingredients account for restaurant expenditures.

I suspect it would be low at the olive garden. winking smiley



Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: Speedy
Date: July 21, 2022 03:19PM
I thought my last quarter pounder at McDonald’s was smaller. Now I know what is happening.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: Michael
Date: July 21, 2022 06:50PM
Quote
mattkime
I'm sure this varies considerably, but I'm curious how much food ingredients account for restaurant expenditures.

I suspect it would be low at the olive garden. winking smiley

According to smallbusiness.com, "Food costs (including beverages) for the restaurant industry run typically from the 28 percent to 35 percent range, depending upon the style of restaurant and the mix of sales."

[smallbusiness.chron.com]
Options:  Reply • Quote
Re: shrink to fit?!.....'shrinkflation' now being used by restaurants....
Posted by: Mactel
Date: July 22, 2022 10:34AM
Options:  Reply • Quote
Sorry, only registered users may post in this forum.

Click here to login

Online Users

Guests: 170
Record Number of Users: 186 on February 20, 2020
Record Number of Guests: 5122 on October 03, 2020