Flickinger: Food Prices are High & Going Higher
Updated: Dec 29, 2022
Burt Flickinger spoke with Alexis Chritoforous of Yahoo Finance about high prices going even higher and why there may not be any potato chips for Super Bowl Sunday. Alexis asked whether it may soon be less expensive to eat out than at home, and Burt noted that restaurants mark-up food about 300% and beverages by 700-900%, while grocery stores only mark up by about 20%, so it's still cheaper to eat at home. Burt also discussed David Kostin's Goldman Sachs report that inflation is adding as much as $5,000 a year to average household costs, while adding that package goods companies are taking advantage of inflation and shortages to pad profits with impunity through price gouging.
Our own Strategic Resource Group research meanwhile finds that consumers are revolting by purchasing more Private Label brands, and we can expect store brand sales to increase 30-50%. Also: Fertilizer and pesticide prices are going up, along with cost of transportation and labor, so even though we will see a record crop yield per acre in the continental US, prices will continue to skyrocket at the local supermarket. And: Online grocery shopping has increased from a pre-pandemic 12% to 20-25% today and going higher, as retailers including Target, Winco, Walmart, Wakefern & Shop Rite make it easier to buy online and pick up curbside or take home delivery.
Strategic Resource Group is the lead retail and brand CPG consulting firm throughout the United States and the globe. With more than three decades of experience, our team strategically collaborates with top retail chains, wholesalers, suppliers, and investment firms. Our retail industry experts are highly skilled at illuminating retail trends, identifying opportunities to increase consumption, and growing retail sales.
Stay in the loop with SRG’s insights and latest news reportings as Burt Flickinger makes special appearances on the radio, TV, and many other platforms. Explore the ways to drive your profitability, discover top resources, and uncover your competitive advantages!