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Seventy of expenses: "There will be another price increase in the restaurant sector" | Israel today

2022-12-11T18:10:15.476Z


Hell's kitchens: the tsunami of price increases in all areas is of course seeping into the industry - and soon also into the diners' pockets • The restaurateurs claim they have no choice: "only ketchup became more expensive for us last month by 18%"


Victims Ltd.: The cost of living - which includes the increase in food prices, property tax and electricity - seeps directly into businesses, including of course the restaurant and food industry. Those who frequent the restaurants, which also include street food, feel the increase in prices in chains and small businesses very well. As mentioned, also Basic street food has long been not cheap, especially when it comes to a family meal.

Maya and Golan enjoy the twins' falafel // Photo: Liron Almog // Maya and Golan enjoy the twins' falafel // Photo: Liron Almog

So, for example, at "Falafel the Magician" in Tel Aviv, the price of a portion is 25 NIS, at "Beit HaPol Hirok" in Big Beer Sheva, the price is 24 NIS, and at "Falafel Peak" in Jerusalem - 20 NIS.

David Haddad, the owner of "Beer Garden" in Sharon in Tel Aviv and in Hod Hasharon, tells "Israel Today" that "the prices of the raw materials do not stop rising, and it has already lost control. We raised prices in April, and in terms of percentages it has changed - some things have gone up in -5% and some are at 10%.

"The slowdown has an effect"

"At any given moment we need to raise prices, but we are constantly debating on the issue because we do not have the ability to do this continuously. We have a customer base, and you cannot pass it on to them, in the end they will vote with their feet. I am in great competition. The price of the Yips has cost us, I have two businesses for which I buy a lot of hot dogs, and in the last year and a half the price of hot dogs has increased by 18%. And I'm not talking about manpower, which is getting more and more expensive due to a lack of workers. Manpower is the biggest problem."

To the question of whether there is a decrease in the number of visitors due to inflation, Hadad answers: "I have businesses in areas that still don't feel it, namely in Hod Hasharon and Tel Aviv. However, we still haven't returned to the cycles from before the corona virus. The slowdown probably has an effect."

When asked if he thinks there will be another increase in the prices of dishes in restaurants, Haddad replies: "I think there will be an increase in prices in the restaurant sector, because of all the price increases. For example, ketchup went up 18% last month. It is a basic product in places of eating and they never charge money for it." .

Another source in the restaurant industry says: "Food prices have risen by 20% and even 30%. If I bought bread and cheese for 10 shekels, today it is half bread and half cheese. The money is being eroded, and no one knows what will happen. Because of the headlines They only talk about governance, security and education, but no one notices that everything here is crazy. There is a limit to how much you can take on pasta or shawarma in a pita.

"All salaries have gone up. Today there is not a single employee who works in the kitchen for 35-40 NIS an hour - they start with 50 NIS gross. There are those who worked during Corona for eight months in deliveries, think they are cooks and ask for 60 NIS. Today the salary, including Saturdays, for an employee exceeds 15,000 shekels, compared to 12,000 shekels until recently, and this is reflected in many costs. In addition, the fish became more expensive by 25%, the meat by 20%, the flours by 15% and the cheeses by 20%."

very upset

Shai Berman, CEO of the Restaurant Association, says: "The price increases in restaurants did not reflect the price increases in the entire economy.

The restaurateurs are trying to deal with the price increases and remain attractive to the clientele even at the cost of harming profitability, and they are very disturbed by the ability of the customers to spend time with us in business.

That's why we try to be as solid as possible in the price increases so as not to create a situation where customers can't afford to spend time in restaurants.

These are increases of 3-9%.

Shay Berman,

"A restaurant is like a normal household and you see how everything goes up: the rent, the operating costs, and the manpower, which has increased a lot since the corona virus. This makes it very difficult for us to be profitable. We look forward and hope that the price increases will stop, but if they don't stop, we understand that we will be There is a problem, because there is a glass ceiling for the increase in prices. There comes a point where the customers can't stand it anymore."

To the question of whether there has been a recent slowdown and if business closures are expected, he answers: "We feel in recent weeks that there is some kind of slowdown, after a very big boom that was after the corona virus. The last few weeks have been a little calmer. It may be related to the World Cup, but we also see it in the more expensive restaurants, so we think it's not only related to the World Cup, but for other reasons, that is, people find it more difficult to go out to restaurants.

The restaurants that returned to activity helped the economy to grow, photo: Liron Maldovan

"There have been several bankruptcies, such as 'To the Bone Express' and 'Only Meat.'

still like to hang out

As mentioned, there are already signs that the cost of living has a certain effect on spending time in restaurants.

According to Tamar Ripel, VP of Marketing and Content at the Ontopo app, "People still like to go out, have culinary experiences and spend their money on it.

However, there is no doubt that today it is possible to find restaurants where in the past it was a challenge to find a place, certainly on weekends.

Obviously, the further you go from the center, the more you feel the differences, with a decrease in occupancy and orders.

On the weekends, the restaurants in Tel Aviv and in the center still maintain their strength.

"There are the prominent restaurants that on the weekend have 100% occupancy and a full waiting list, and in the middle of the week they reach 80%-65% occupancy. This is compared to what was a few months ago, when in the middle of the week it was more full. In the past, people would go out twice or Three a week, and now they have dropped to once or twice because of the cost of living."

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Source: israelhayom

All news articles on 2022-12-11

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