Celebrity chef says restaurant-goers are still seeing high menu prices because of this 'No. 1 problem'
David Burke Hospitality Management President David Burke breaks down the cost of restaurant inflation on 'The Claman Countdown.'
After restaurant stocks served up a mixed earnings bag this season, one Iron Chef America alum is revealing the «No. 1 problem» that’s keeping their prices high and overall profits low.
«The number one problem for us is controlling labor cost,» Chef David Burke said on "The Claman Countdown," Wednesday. «There's employees out there, so many employees, they're commanding top dollar, but not necessarily the top talent.»
«There's lots of turnover, there's lots of benefits that are associated, depending on whether you're in the city or the suburbs,» he continued. «So labor becomes an issue and the training, losing an employee costs a lot of money because of the amount of effort you put into training.»
April’s consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – indicated that year-over-year prices for beef climbed 7%, vegetables up 2.3%, sugar increased 4.3%, while seafood, cheese and eggs were down by single-digit percentages.
CELEBRITY CHEF ROBERT IRVINE PREDICTS CALIFORNIA ‘OPENED THE GATEWAYS’ TO MINIMUM WAGE ‘PROBLEM’ IN AMERICA
What’s more, food-based companies like Dine Brands (Applebee’s, IHOP) and The One Group Hospitality (STK Steakhouse, KONA Grill) saw share prices dip this week, while BJ’s, Cheesecake Factory and Darden Restaurants rose slightly.
Celebrity chef David Burked put the onus on labor costs as the «No. 1 problem» for the restaurant industry today. (Fox News)
Job growth also sputtered in April, with the hospitality industry pulling back on hiring. Chef Burke pointed out how the restaurant business is not for the
Read more on foxbusiness.com
