Steakhouses Face Increased Challenges To Provide Dining Experiences

Food and material shortages, labor scarcity, and soaring import costs have made running a restaurant more challenging than ever for steakhouse owners and managers. 

Following months of bans on indoor dining and a gradual recovery in consumer confidence, restaurant revenues in the United States fell $240 billion short of expectations in 2020. According to estimates from the National Restaurant Association, approximately 80,000 establishments have temporarily or permanently closed since the start of the pandemic, down from 110,000 at the peak of the pandemic.

Establishments that previously had no issue with procuring high quality steaks and meats are finding a very different combination of obstacles. This past year beef had the most dramatic increase of all groceries with a 20.9% spike in price.

According to a new survey, the majority of independent eateries in the United States saw a reduction in sales in December 2021 as a result of an increase in Covid-19 instances caused by the Omicron variant.

The survey was based on information gathered by the Independent Restaurant Coalition (IRC) from over 1,200 member restaurants and bars in 50 states. And according to those survey results, sales dropped by more than half in December 2021 for about 58 percent of enterprises.

Restaurant prices spiked 5.8% over the 12 months ending in November without seasonal adjustments, according to the Bureau of Labor Statistics. Which is the largest 12-month increase since the year ending January 1982. Grocery prices jumped 6.4%, the largest 12-month increase since December 2008. And beef had the most dramatic increase with a 20.9% spike in prices.

Running a restaurant historically has meant low profit margins, but now profit seems like it has vanished altogether leaving restaurateurs to negotiate the delicate balance of keeping their clientele or risk chasing them away by raising prices.