Published on: April 16, 2008Inside Tucson Business reports that ethnic markets and restaurants in the region “have been under increasing stress lately due to falling value of the U.S. dollar against many other world currencies … The dollar is currently worth about 64 percent of a Euro (as of April 10). A year ago it was worth 76 percent according to the European Central Bank.''
The newspaper notes that this has the potential for real consumer impact: “Ethnic markets and groceries are a significant source of food in the United States. A study released by Iowa State University in 2005, found that Americans spend an average of nearly 15 percent of grocery money on ethnic food.”
And yet, according to the article, there are differences in how some retailers and restaurants are coping with the price increases. Stores, by and large, say they are passing along the increases to their customers because they cannot afford not to, and customers seem to understand; restaurants, on the other hand, are holding the line on prices, concerned that increases could compel patrons to eat elsewhere or even (gasp!) cook at home.
- KC's View:
- Of course, it isn’t just ethnic food that is getting more expensive…and whatever the strategies that retailers and restaurants devise for meeting the challenge, they better have long-term plans. Because food isn’t likely to get cheaper anytime soon.