Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

Dallas-area restaurants hit hard by global supply chain issues

usscmc by usscmc
July 5, 2021
Dallas-area restaurants hit hard by global supply chain issues
Share on FacebookShare on Twitter

Eager to reenter society and seeking the familiar pleasures of a meal served on real plates, Dallas-area diners have returned to restaurants in droves. But at times they’ve been met with whittled down menus, higher prices and mediocre service.

A complicated tangle of global supply chain disruptions has created a difficult environment for restaurant operators who are trying to keep up with increased demand. Material shortages, labor scarcity and skyrocketing costs of imported goods have made it more difficult than ever to run a restaurant, and Texas businesses are struggling.

“It is far and away more expensive than it used to be to run a restaurant,” says Dallas chef and restaurateur Julian Barsotti. “We have yet to raise our prices, but we’re going to have to at some point.”

Barsotti, who owns Nonna, Carbone’s, Sprezza and Fachini restaurants, says supplies and ingredients have gone up in price across the board. For example, a bag of 00 flour used to make fresh pasta costs 10% more than it used to before the pandemic, he says. Everything from takeout containers to fresh meat and dining tables also have gone up in price for one reason or another, often creating unsustainable operating conditions.

Barsotti says he’s dragged his feet on charging more for dishes in hopes that the supply chain would normalize. He fears scaring off customers with higher prices.

“You’re just so reluctant to do anything at this point that would deter business after the traumatic year we’ve had,” he says. “But nothing I’ve read or heard indicates that there is an end to this soon.”

A now hiring sign outside of Position in Deep Ellum on Saturday, May 15, 2021, in Dallas.

BakeMart driver Ravon Player makes a supply delivery to a Deep Ellum ice cream shop in Dallas, Friday, July 2, 2021.
BakeMart driver Ravon Player makes a supply delivery to a Deep Ellum ice cream shop in Dallas, Friday, July 2, 2021. (Tom Fox / Staff Photographer)

According to the National Restaurant Association, the country is on track to experience the highest menu price increases it’s had since 2008.

“Much of that is because, with the thin margins of a restaurant, they can’t absorb the 20, 30, 40, even 50% price increases on products and not have some of that pass to the consumer,” says Emily Williams Knight, president and CEO of the Texas Restaurant Association.

There are two key reasons for the widespread price hikes, she says — global supply chain shutdowns across all different sectors and sweeping staffing issues that are impacting manufacturing and production.

One example of this is chicken, Knight says. The cost of chicken is higher than it was in 2020 because plants that were already behind on production due to pandemic-related shutdowns are now experiencing a shortage of workers, which has dropped chicken production down 4% nationwide, and in turn driven up the price.

Knight says she’s spoken with owners of Tex-Mex restaurants who are floored over the price increase for the meat they use for fajitas. Skirt steak that used to cost $4.50 a pound is now $12 a pound, they told her.

“Demand far exceeded what we would have expected coming out of the pandemic, and you have less product, which is driving the prices up,” she adds. “We think it’s going to be six months until these supply chain issues are sorted out. It just feels like death by a thousand cuts for restaurants right now.”

At a Restaurant Depot in Dallas, assistant manager Jose Perez says customers have stopped asking for certain products and when they’ll be available again. They’ve grown accustomed to the empty shelves along with markups. These days, running a restaurant is about adaptability and getting creative with whatever’s on hand, Perez says, and it’s a dance the industry has been in since the start of the pandemic.

“Things that used to take three to four weeks to come in now take up to 10 weeks,” he says. “Anything that’s an international product has been affected in some way. Plasticware and to-go containers are really hit or miss because of shortages stemming from China. Mexican sodas can be hard to find because the supply chain for those has been affected, and those companies are facing employee shortages. A 35-pound bottle of oil that used to be $18 is now $40. In the 12 years I’ve worked here, I’ve never seen these kinds of shortages.”

Trey Dyer, president of Mesero Restaurants, says what restaurants really need is patience from customers as they work through the challenge of expensive, hard-to-get supplies coupled with understaffed kitchens and dining rooms.

He loads up on cases of Topo Chico for Mesero when he does his own grocery shopping, since the restaurant group hasn’t been able to get the sparkling water from its main supplier. One week they might have a hard time getting chicken, another week, it’s tequila.

“If it was super consistent, then it would be much easier for us … but the problem is, all of them go out of the product at about the same time,” Dyer says. “The supply is not there to restock everybody who is trying to restock right now.”

Supply shortages, inflation, staffing issues and supply chain disruptions aren’t unique to the restaurant business, but they’re the latest challenges thrown at an industry that hasn’t been able to catch a break — or its breath — in more than a year.

But Barsotti says these hurdles pale in comparison to what restaurants were up against this time last year, so he’s hopeful.

“It’s a better problem to have than having no business in a pandemic,” he says. “Business has kind of come roaring back along with issues with labor and inflation, but to me this is a more surmountable challenge than the depths of despair at the beginning of the pandemic, when all you could do was just pray to get through it.”

Server David Walsh waits on a table at the nearly full Nonna restaurant in Dallas, Friday evening, July 2, 2021.
Server David Walsh waits on a table at the nearly full Nonna restaurant in Dallas, Friday evening, July 2, 2021. (Tom Fox / Staff Photographer)
usscmc

usscmc

No Result
View All Result

Recent Posts

  • How Hapag Lloyd captured a major market share in the Container Shipping Industry in USA
  • Why USA’s East Coast is the Favorite Destination for Manufacturing Companies
  • How Trade Relations Between the USA and UK Improved After Keir Starmer Became Prime Minister
  • Tips and Tricks for Procurement Managers to Handle Their Supplier Woes
  • The Crazy Supply Chain of Walmart Spanning Across the Globe

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2025 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2025 www.usscmc.com