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Local restaurants are feeling the heat of rising prices due to inflation

Money wallet AP
Posted at 7:52 PM, Jan 26, 2022
and last updated 2022-01-27 08:25:36-05

Nearly two years into the COVID-19 pandemic and Texas restaurants are feeling the heat of inflation. This time, dealing with rising prices.

With the price of goods and other items increasing, Owner of Cookie and Crumb Bake Shop, Katie Nicholson, said the prices for their most popular ingredients have increased up to 60%.

"I actually started this business during the pandemic. So its been a day to day ordeal for about two years now," said Nicholson. She's had to choose between using cheaper ingredients or raising her prices, she ultimately chose quality.

One ingredient she uses, is King Arthur flour. Nicholson says it went up $5 a bag since October. She said eggs have gone up about 60% adding to her costs.

"That also includes boxes, paper products, freight. A lot of companies aren't offering discounted freight or free freight which adds to our cost," said Nicholson.

At Nueces Brewing Company, owner Brandon Harper said they are paying 10-20% more for ingredients due to inflation.

"Well its brisket actually, its our number one selling item. And it's gone from $2.89 to $5.11. So we've had to go up in our prices a little bit," said Harper.

Harper tells us he has taken any loans offered to him just to stay open.

"Businesses hate raising prices. We don't like to do it and we only do it if we have to. A lot of people think that businesses are making more money because prices are up, but that's not the case. Because most businesses, especially restaurants, haven't raised the prices to cover the price increase because of what consumers will do," said Harper.

The Texas Restaurant Association is asking congress for $50 billion to help restaurants across the country. The organization is hoping to receive funding sometime next month. To help support their efforts click here.