Is there a way to keep them down?
Today’s post is from SafeSourcing’s monthly newsletter that goes out to over 6500 subscribers.
Here’s some examples of where price increases rising and according to sources, why!
McDonald’s Raises Menu Prices In order to keep up with rising costs, including a 10% increase in employee wages this year, McDonald’s has increased their menu pricing. The company is struggling to hire enough staff to keep their doors open even with higher wages as an enticement. The company is paying more for paper, food, and supplies. The commodity costs for the year have risen 3.5% to 4%, up 2% from earlier in 2021. It is expected that menu prices will increase by 6% compared to last year. “Companies across the globe are raising consumer prices in response to growing costs spanning distribution and freight to fuel and food. U.S. inflation in September remained at its highest rate in more than a decade, Labor Department data showed.” Starbucks Corp. will increase the average employee pay to $17 an hour from $14. Baristas that have been with the company will get a 5% pay increase and employees that have been with the company for five years or more will be eligible for up to 10% pay increase. Many restaurants have increased menu prices to offset higher wages for cooks and servers, as well as increased prices for meat, packaging, vegetable oil and other commodities.
At SafeSourcing we help our B-to-B customers keep their costs down so that their B to C customers do not have to suffer huge price increases. You can too if you contact SafeSourcing.
References
Heather Haddon. WSJ, 10/28/2021
