APOPKA, Fla. — It’s a perfect storm for business owners right now: Food costs are going up, supply and distribution chains are facing new challenges, fewer people are eating out, there is a worker shortage and inflation is causing additional stress as well.
What You Need To Know
- Supply chain issues have affected businesses across the country in recent weeks
- In Apopka, the Argos Family Diner has had to increase the price of most items by $1.50 to help offset the increased cost caused by the shortages
- Despite the increase, owner Demetrios Girmis says his business income is still down 25%
The supply chain issues currently affecting businesses across the country are forcing local shops to change how they operate.
According to a U.S. Census small business survey, 41% of Florida businesses have been impacted with supply chain delays and difficulties this month.
One of those is Argos Family Diner in Apopka, which was forced to do their own market adjustment just to stay open.
“We have never seen such a shock like this in pricing,” Argos Family Diner owner Demetrios Girmis said while shopping for food from his distributor and pointing out how beef prices have doubled in recent weeks.
And it’s not just the beef — items people don’t even consume, but use, have seen prices soar due to scarcity. Cups, straws, napkins and lids prices have all gone up, and there are some weeks that Girmis said he can buy cups but not the lids to top them.
Due to increase costs, the family diner has added an item under their specials menu: notice of a price increase.
Nearly all menu items at Argos Family Diner have an extra $1.50 added to the price. Even with the add on, the Girmis said the business continues to lose money in the short term.
“We just have to adapt to what’s going on," he said. “Try to explain it as much as possible to the customers.”
John Boatright, director of national affairs with the Florida Farm Bureau, said food prices are on the rise in a way not unlike the changes drivers often see at the pump.
“We see different commodity prices fluctuate every day, just like gasoline does,” Boatright said.
According to the Florida Farm Bureau, the level of supply and demand for several food products has created a market adjustment.
“Farmers have been price takers for a long time, not price setters,” Boatright said. “That means they are working with distributors and others in the supply chain to take what they think is a good price for their product.”
Back at the diner, even with a market adjustment to the menu, income at the business is still down 25%, but Girmis is hopeful his restaurant can ride out this wave.
“I don’t think long for smaller business owners we’ll be able to survive on this price fluctuation increase,” he said.
Prices have been increased by $1.50 for three months now, and Girmis said even that price may also soon go up.
The Bureau of Labor Statistics says food away from home prices climbed 4.7% from September 2020 to September 2021. Food distributors like Halperns’ expect Food prices to continue to rise and not come back down until some time next year.