New Hampshire restaurants struggle with rising costs, supply chain problems
Restaurant owners say costs are hurting bottom line
Restaurant owners say costs are hurting bottom line
Restaurant owners say costs are hurting bottom line
Supply chain issues brought on by the pandemic are extending to food in New Hampshire grocery stores, restaurants and bakeries.
Some who run eating establishments said prices are often double or more when they can find what they’re looking for.
"It definitely costs more now to do business," said Denise Nickerson, owner of The Bakeshop on Kelley Street. "We're paying a lot more for products."
Nickerson said the oil she uses to cook her doughnuts rose from $17 to $55 per gallon. She said her supplier is having a tough time getting other items.
"I mentioned cream cheese, and all he did was start laughing," Nickerson said.
It's the same with the famous lamb shanks at Café Nostimo in Portsmouth.
"We've tried many, many avenues, and it's just unavailable right now, and no answers as to when they're coming," said Dean Zottos, owner of Café Nostimo.
The whole tomatoes used in the restaurant's sauces are also tough to find.
"Some of them are packed in cans from California, and it's family-owned, and they said there's no tin to pack the tomatoes in," Zottos said.
It all adds up.
"When you're putting chicken on a plate which is two and a half times the price, and it's a fry product, for instance, and you're frying it in a fryolator with the oil two and a half times the price, and then we put it into a container to go, which is two times the price — the bottom line is really just shrinking," Zottos said.
"They used to call it 'creeping' in the business, where prices creep up, but now, now they're jumping," said Jay McSharry, who owns 10 Seacoast-area restaurants.
McSharry had advice for the chefs at his restaurants.
"We need to raise prices, or we'll be out of business," he said.
Zottos said that when restaurants' costs double, theoretically, prices should too, but that wouldn't be cost-effective because it would drive customers away.