Sozzi: 7 Bone Crushing Realities for Anyone Eating Out This Summer
NEW YORK (TheStreet) -- Save those digital pennies guys - taking a Tinder-sourced date to Buffalo Wild Wings
Sugar: after reaching a three and a half year low in January of this year, sugar prices have rebounded to the tune of 15%. Might want to swap that sweetened iced tea for tap water at the table.
Tomatoes: due to persistent drought conditions in California, tomato prices are expected to increase by at least 20% this year. Coupled with the aforementioned spike in beef, chicken, and dairy prices, dollar menu shepherds McDonald's and Burger King
Cocoa: make sure to order a heavy dinner so there's no desire for a chocolate-themed dessert. Cocoa prices have gained 12% from January. Hershey
What will restaurant operators likely do to protect their profit margins? Don't instantly think the action plan involves immediately boosting menu prices:
- Portion sizes could be shrunk.
- Recipes may be reworked to include fewer ingredients.
- Menu items could be completely removed.
- Yes, menu prices will head higher, something already outlined by Chipotle
(3% to 5% increase pre-summer) and McDonald's (2% increase).
Score one for those owning a farm and able to sustainably raise their own food.
-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.