Stupid Thing #3 About Stores
I think that the cost of eating out will go up fairly soon. The reason for this is because eating out is beginning to cost less than grocery store shopping.
I can't believe that every single piece of meat I bought the other day cost me $10 each. Just about everything in the store was $10 each. Now, if you add veggies, dairy, grains, etc. to that to make a full meal, you are paying about $15-20 for one meal. Isn't that what we pay in the restaurant? I can't believe it.
What's the point of buying groceries if you can eat out and be served by someone for the same price?
This is my reasoning for why the price of eating out will go up, unfortunately. Groceries aren't likely to go down in price unless there is widestream disapproval of this, and I don't think there is. The majority of people seem to be accepting it rather than fighting it.
So now, the restaurants will use the excuse that buying the staples costs them more nowadays, so they have to raise their prices. They will eventually see that grocery store prices are equaling their restaurant prices, and they will raise it since eating out is supposed to be a luxury. It won't remain a luxury if everyone can do it all the time.
I also see fast food prices raising to match the raising cost of staples. And, since food is a necessity, we must purchase it in order to survive and give in to these rising prices, or starve.
It seems that we are accumulating too much wealth. Something's got to give. Apparently, gas and groceries will get that ball rolling.
The Crazy Rants of Samantha Burns






















Comments
You're assuming that the restaurants you patronize use the same quality of ingredients that you buy, which isn't necessarily true.
Also, restaurants have efficiencies that individuals do not, unless you're buying items cooperatively and thus have the same giant vat of ketchup (shared with your neighbors) that a restaurant would.
Posted by: PG | September 15, 2005 10:11 PM
No, I made no such assumption. I was merely stating that restaurants will now have an excuse to charge more now that grocery prices have gone up.
Regardless of what "efficiencies" restaurants have, they will charge more if they are capable of doing so, and rising grocery prices makes for a good excuse regardless of the reality behind the scenes. Although, as grocery store staples go up in price, so do wholesale/cooperative prices.
And, let's not ignore the fact that as employees have to pay more for things like groceries and gas, etc., they will be looking for a raise in their salary, which means restaurant owners will have to pay out more to employees; therefore, they will have to raise prices of meals just to make it balance out in the end.
Posted by: Sam | September 15, 2005 10:58 PM
Since the price of gas is 25% more than it was a month ago, it is logical to assume everything will go up in price.
It is costing the suppliers of both restaurants and grocery stores that much more to do busniess.
Posted by: Temujin | September 15, 2005 11:22 PM
McDonald's has been cheaper than the grocery store for years. Unfortunately that crap kills you quicker than grocery store food. But with the money you save, you can afford health insurance!
Posted by: Yawn | September 16, 2005 04:29 AM
One thing about supermarkets is that their prices generally have a very low markup; that is, it's not the store that's gouging you, but rather the food manufacturer (General Mills, Nestle, etc.) or the trucking company that delivers it (where gas prices come in).
Overall, if you're smart, it's cheaper to eat at home than, believe it or not, eat all three meals at Mickey D's. You just have to buy on sale, use coupons, and, when necessary, go off-brand. The effort there goes a long way; I worked in supermarket retail for about thirteen years, and you can game the food system and eat pretty well by knowing the tricks.
Posted by: Dave D | September 16, 2005 08:16 AM
I bought a package of four 1/2" T-bones yesterday for $14.85 and 2 packages of Top Sirloin with two steaks each in the package for just under 5 bucks a pack. Must be Texas. Not only gas prices going up will affect the rise in damn near everything, but a lot of things came into the country or were shipped via the Port of New Orleans. Know anybody needs a job as a longshoreman? Send them to the Port of Houston.
Posted by: Diane | September 16, 2005 10:25 AM
hmm... that's odd... i pay roughly the same (translating to US dollars) at premium meat markets, but do so by choice as I don't eat red meat that often, and on the occasion I want a steak at home I don't mind splurging (the quality difference is noticeable).
that said, pricing in general supermarkets is less, and at times the quality isn't a huge thing (with the smaller meat market, you can avoid the 20 minutes of getting jostled by the general rubes, which is worth a dollar or two)
I would have thought prices in canada would have gone down since the huge outcry that americans cutting off imports was killing their business with the madcow thing (valid point I would say... a lot of cattle ranchers made big bank in the US by crying wolf, whereas when the opposite happens, it was an infection from 3 centuries ago... but I digress)... one would think that would increase supply, but guess not.
chain restaurants are insulated from increasing prices in costs of delivery of goods as they have economies of scale... it's the small guy/gal that will have issues unless they aren't pressured on price.
Posted by: kelly | September 16, 2005 09:47 PM
I swear Samantha, for months I've been trying to convince my husband that eating out for dinner is cheaper than buying groceries for 7 meals for 3 people. I've even proven it but he blocks it out, he's in denial.
Posted by: mel | September 16, 2005 11:32 PM
Where can you feed four people t-bones for 20 bucks? lol After you throw together a salad and make baked potatoes that's about all it comes to with the price I paid.
Posted by: Diane | September 17, 2005 08:37 AM
Perhaps Canada is different (I know that in Singapore and some other countries, consumers can complain about prices to the government), but in the U.S. there is no requirement for a restaurant to "justify" its prices. A friend recently noticed
http://www.threeyearsofhell.com/archive/003718.php
that the school's prices for coffee have spiked in the three years he has been there, but they've made no attempt to explain why. If you don't like the prices, you don't patronize the establishment.
Posted by: PG | September 17, 2005 08:22 PM
Oh right, so you're telling me that the media won't kill them with words if they raise their prices.
Of course, people have to explain their actions regardless of what the law says, especially if it is a widespread raising of prices.
Anyhow, I'll give you the last word on this because it's pointless to argue a dense argument. I maintain that restaurants will raise prices; and if they don't, PG you're correct.
Posted by: Sam | September 17, 2005 08:52 PM