WOODINVILLE, Wash. — The cost of going out to eat is eating at restaurant owners as menu prices increased at their highest rate in 40 years in January, according to new federal data. Restaurant owners are raising menu prices to make up for the higher cost of goods due to high inflation rates.
Prices for food away from home, which includes places like restaurants, bars and cafeterias, increased 6.4% in January over the past year. The increase was the highest rate since 1982, according to the U.S. Bureau of Labor Statistics.
"It feels like everything is affected," said Bryan Streit, owner of Pizza Coop in Woodinville.
Streit has seen the cost of ingredients skyrocket since the start of the COVID-19 pandemic. After six years in business, Streit said he has never been busier.
"These are the most hours I've worked since the year we opened," said Streit.
For example, the cost of pizza boxes is costing Streit an additional $14,000 per year.
"At one point, we nearly had to stop selling to-go pizzas because supply was so low,” explained Streit. “Thankfully, we got a last-minute shipment.”
Ingredients like meat and pepperoni have skyrocketed in recent years. Pizza Coop paid $2.49 a pound before the pandemic. But today, the cost of pepperoni is up to around $5.50 a pound. For Streit, that accounts for an additional $8,000 in costs a year.
Cooking oil is costing Streit about an additional $5,000 a year, and cheese makes up for an additional $35,000 in costs a year.
"Thankfully, I think our customers are taking it well," he said. "We're taking it day by day."