Drought increasing costs for B.R. restaurateurs

Local restaurants are already feeling the early effects of a U.S. drought that has caused corn and soybean prices to soar to record highs, and more dramatic price hikes from suppliers may be coming soon, according to several local restaurant owners. One of them, Cafe Phoenicia partner Johnny Mekari, says the biggest immediate price hikes are coming on meat, due to the abundance of corn and soy in livestock feed. "The biggest corn consumption we have, the most corn-using product, is chicken," Mekari says. "The price of a case of chicken has risen from about $65 to about $72." While that may be manageable for now, Mekari says his supplier told him to expect the price to reach $105 in "about a month or so." Besides facing the jump in chicken prices, what Café Phoenicia is paying for beef and wheat has also risen about 20%, while bread and rice prices are up 10%. "The producer is trying not to pass along the costs, but the margins are shrinking along the whole chain," he says. Thus far, Mekari is not passing along to diners the price increases Café Phoenica has been absorbing, and he's holding out hope that the next round of crops will be able to replenish the supply—and bring down prices for everyone. "We kind of have to bite the bullet in the meantime," he says. However, if the nationwide drought continues to prolong crop shortages, Mekari adds, price increases may be inevitable. —Frederick Holl

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